Delta Airlines 2010 Annual Report Download - page 47

Table of Contents
Interest Rate Risk
Our exposure to market risk from adverse changes in interest rates is primarily associated with our long-term debt obligations. Market risk associated with
our fixed and variable rate long-term debt relates to the potential reduction in fair value and negative impact to future earnings, respectively, from an increase
in interest rates. At December 31, 2010, we had $8.6 billion of fixed-rate long-term debt and $6.8 billion of variable-rate long-term debt. An increase of 100
basis points in average annual interest rates would have decreased the estimated fair value of our fixed-rate long-term debt by $320 million at December 31,
2010 and would have increased annual interest expense on our variable-rate long-term debt by $55 million, inclusive of the impact of our interest rate hedge
instruments.
Foreign Currency Exchange Risk
Our results of operations may be impacted by foreign exchange rate fluctuations on the U.S. dollar value of foreign currency-denominated operating
revenue and expense. Our largest exposures come from the Japanese yen and Canadian dollar. To manage exchange rate risk, we attempt to execute both our
international revenue and expense transactions in the same foreign currency to the extent practicable. Changes in foreign currency exchange rates are not
material to our results of operations.
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