Delta Airlines 2010 Annual Report Download - page 52

Table of Contents
DELTA AIR LINES, INC.
Consolidated Statements of Cash Flows
Year Ended December 31,
(in millions) 2010 2009 2008
Cash Flows From Operating Activities:
Net income (loss) $ 593 $ (1,237) $ (8,922)
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities:
Depreciation and amortization 1,511 1,536 1,266
Amortization of debt discount, net 216 370 20
Loss on extinguishment of debt 391 83 —
Fuel hedge derivative instruments (136) (148) (443)
Deferred income taxes 9 (329) (119)
Pension, postretirement and postemployment expense (less than) in excess of payments (301) 307 (278)
Equity-based compensation expense 89 108 54
Impairment of goodwill and other intangible assets — — 7,296
Restructuring and merger-related items 182 — 892
Changes in certain current assets and liabilities:
(Increase) decrease in receivables (141) 147 194
Decrease (increase) in hedge margin receivables — 1,132 (680)
Decrease in restricted cash and cash equivalents 16 79 320
Increase in prepaid expenses and other current assets (105) (61) (18)
Increase (decrease) in air traffic liability 232 (286) (374)
Decrease in frequent flyer deferred revenue (345) (298) (255)
Increase (decrease) in accounts payable and accrued liabilities 516 143 (526)
Other, net 105 (167) (134)
Net cash provided by (used in) operating activities 2,832 1,379 (1,707)
Cash Flows From Investing Activities:
Property and equipment additions:
Flight equipment, including advance payments (1,055) (951) (1,281)
Ground property and equipment, including technology (287) (251) (241)
(Increase) decrease in restricted cash and cash equivalents (2) (59) 609
(Purchase) redemption of investments (730) 142 (92)
Increase in cash in connection with the Merger — — 2,441
Proceeds from sales of flight equipment 36 100 154
Other, net 12 11 8
Net cash (used in) provided by investing activities (2,026) (1,008) 1,598
Cash Flows From Financing Activities:
Payments on long-term debt and capital lease obligations (3,722) (2,891) (1,296)
Proceeds from long-term obligations 1,130 2,966 2,132
Proceeds from American Express Agreement — — 1,000
Payment of short-term obligations, net — — (300)
Proceeds from sale of treasury stock, net of commissions — — 192
Other, net 71 (94) (12)
Net cash (used in) provided by financing activities (2,521) (19) 1,716
Net (Decrease) Increase in Cash and Cash Equivalents (1,715) 352 1,607
Cash and cash equivalents at beginning of period 4,607 4,255 2,648
Cash and cash equivalents at end of period $ 2,892 $ 4,607 $ 4,255
Supplemental disclosure of cash paid for interest $ 1,036 $ 867 $ 742
Non-cash transactions:
Flight equipment under capital leases 329 57 32
Debt relief through vendor negotiations 160 — —
Debt discount on American Express Agreement 110 — 303
Aircraft delivered under seller financing 20 139 —
Shares of Delta common stock issued or issuable in connection with the Merger — — 3,251
The accompanying notes are an integral part of these Consolidated Financial Statements.
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