Delta Airlines 2010 Annual Report Download - page 67

Table of Contents
December 31, 2009
(in millions, Prepaid Other Hedge
unless otherwise Notional Maturity Expenses and Other Accrued Noncurrent Margin
stated) Balance Date Other Assets Liabilities Liabilities Payable, net
Designated as hedges
Fuel hedge swaps, collars and call options 795 million gallons —
crude oil, heating oil,
jet fuel
January 2010 —
December 2010 $180 $(89) $—
Interest rate swaps and call options $1,478
September 2010 —
May 2019 2 (38) (9)
Foreign currency exchange forwards 55.8 billion Japanese
Yen; 295 million
Canadian Dollars
January 2010 —
September 2012 1 (12) (12)
Total derivative instruments $183 $(139) $(21) $(10)
Fuel Price Risk
Our results of operations are materially impacted by changes in aircraft fuel prices. In an effort to manage our exposure to this risk, we periodically enter
into derivative instruments generally comprised of crude oil, heating oil and jet fuel swap, collar and call option contracts to hedge a portion of our projected
aircraft fuel requirements, including those of our Contract Carriers under capacity purchase agreements.
As of December 31, 2010, our open fuel hedge position is as follows:
Percentage of
Projected Fair Value at
Fuel Requirements December 31,
(in millions, unless otherwise stated) Hedged 2010
2011 36% $ 328
2012 1 24
Total $ 352
In the Merger, we assumed all of Northwest's outstanding fuel hedge contracts. On the Closing Date, we designated certain of Northwest's derivative
instruments, comprised of crude oil collar and swap contracts, as hedges. All Northwest fuel hedge contracts settled as of June 30, 2009.
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