Delta Airlines 2010 Annual Report Download - page 96

Table of Contents
NOTE 16. RESTRUCTURING AND MERGER-RELATED ITEMS
The following table shows charges recorded in restructuring and merger-related items on our Consolidated Statements of Operations:
Year Ended December 31,
(in millions) 2010 2009 2008
Merger-related items $ 233 $ 275 $ 978
Asset impairment 182 — —
Facilities and other 20 13 39
Severance and related costs 15 119 114
Total restructuring and merger-related items $ 450 $ 407 $ 1,131
Merger-Related Items. Merger-related items are costs associated with Northwest and the integration of Northwest operations into Delta, including costs
related to information technology, employee relocation, employee training, and re-branding of aircraft and stations. In 2008, merger-related items primarily
relate to non-cash charges related to the issuance or vesting of employee equity awards in connection with the Merger (see Note 13).
Asset Impairment. In 2010, we recorded a $146 million impairment charge related to our decision to substantially reduce Comair's fleet over the two years
ending December 31, 2012 by retiring older, less-efficient CRJ-100/200 50-seat aircraft. For a discussion of the techniques used to estimate the current fair
values, see Note 2. We also recorded an impairment charge related to our retired B-747-200 aircraft, which we sold.
Severance and Related Costs. In 2010, severance and related costs primarily relate to our wholly-owned subsidiaries, including charges associated with the
Comair fleet reduction initiative and the consolidation of operations at the Cincinnati/Northern Kentucky International Airport. In 2009 and 2008, we
recorded charges associated primarily with voluntary workforce reduction programs, including $6 million of special termination benefits related to retiree
healthcare in 2009. We do not expect to record any additional material charges related to our severance initiatives discussed above.
The following table shows the balances and activity for restructuring charges:
Severance and
(in millions) related costs Facilities and other Total
Balance as of January 1, 2008 $ — $ 3 $ 3
Additional costs and expenses 114 39 153
Purchase accounting 62 32 94
Payments (126) (20) (146)
Balance as of December 31, 2008 50 54 104
Additional costs and expenses 113 13 126
Purchase accounting — 19 19
Payments (94) (12) (106)
Balance as of December 31, 2009 69 74 143
Additional costs and expenses 15 20 35
Other — 14 14
Payments (64) (23) (87)
Balance as of December 31, 2010 $ 20 $ 85 $ 105
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