Delta Airlines 2011 Annual Report Download - page 92

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NOTE 13. ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS)
The following table shows the components of accumulated other comprehensive income (loss):
(in millions) Pension and Other Benefits Liabilities Derivative Contracts(1) Deferred Tax Valuation Allowance Total
Balance at January 1, 2009 $ (1,702) $ (863) $ (1,515) $ (4,080)
Changes in value (540) (20) — (560)
Reclassification into earnings 48 1,350 — 1,398
Income Tax Allocation — (321) — (321)
Tax effect 183 (491) 308 —
Balance at December 31, 2009 (2,011) (345) (1,207) (3,563)
Changes in value (121) (71) — (192)
Reclassification into earnings 54 123 — 177
Tax effect 25 (19) (6) —
Balance at December 31, 2010 (2,053) (312) (1,213) (3,578)
Changes in value (3,062) 5 — (3,057)
Reclassification into earnings 41 (172) — (131)
Tax effect 1,175 66 (1,241) —
Balance at December 31, 2011 $ (3,899) $ (413) $ (2,454) $ (6,766)
(1) Includes $321 million of deferred income tax expense that will remain in accumulated other comprehensive loss until all amounts in accumulated other comprehensive loss that relate to
fuel derivatives which are designated as accounting hedges are recognized in the Consolidated Statement of Operations. All amounts relating to our fuel derivative contracts that were
previously designated as accounting hedges will be recognized by June 2012 (original settlement date of those contracts). As a result, a non-cash income tax expense of $321 million will
be recognized in the June 2012 quarter unless we enter into and designate additional fuel derivative contracts as accounting hedges prior to June 2012.
NOTE 14. GEOGRAPHIC INFORMATION
Operating segments are defined as components of an enterprise whose separate financial information is regularly reviewed by the chief operating decision
maker and used in resource allocation and performance assessments.
We are managed as a single business unit that provides air transportation for passengers and cargo. This allows us to benefit from an integrated revenue
pricing and route network. Our flight equipment forms one fleet, which is deployed through a single route scheduling system. When making resource
allocation decisions, our chief operating decision maker evaluates flight profitability data, which considers aircraft type and route economics, but gives no
weight to the financial impact of the resource allocation decision on an individual carrier basis. Our objective in making resource allocation decisions is to
optimize our consolidated financial results.
Operating revenue is assigned to a specific geographic region based on the origin, flight path and destination of each flight segment. Our operating
revenue by geographic region (as defined by the DOT) is summarized in the following table:
Year Ended December 31,
(in millions) 2011 2010 2009
Domestic $ 22,649 $ 20,744 $ 19,043
Atlantic 6,499 5,931 4,970
Pacific 3,943 3,283 2,485
Latin America 2,024 1,797 1,565
Total $ 35,115 $ 31,755 $ 28,063
Our tangible assets consist primarily of flight equipment, which is mobile across geographic markets. Accordingly, assets are not allocated to specific
geographic regions.
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