Delta Airlines 2012 Annual Report Download - page 82

Other Secured Financing Arrangements
During 2011 and 2010, we retired $502 million and $532 million of existing debt under our other secured financing arrangements prior to
scheduled maturity. In 2010, we also restructured $820 million of existing debt, including changes in applicable interest rates and other payment
terms. To account for these debt restructurings, we compared the net present value of future cash flows for each new debt instrument to the remaining
cash flows of the existing debt. If there was at least a 10% change in cash flows, we treated the restructuring as a debt extinguishment. We recorded
losses on extinguishment of debt for the difference between the fair value of the new debt and the carrying value of the existing debt. The carrying
value of the existing debt included any unamortized discounts or premiums, unamortized issuance costs and any premiums paid to retire the existing
debt.
Certificates. Pass-Through Trust Certificates and Enhanced Equipment Trust Certificates (“EETC”) (collectively, the “Certificates”) shown in the
table below are secured by 264 aircraft .
Unamortized Discount, Net
Our unamortized discount, net results primarily from fair value adjustments to reduce the carrying value of our long-term debt due to purchase
accounting and an advance purchase of restricted SkyMiles by American Express (see Note 7 ). As described in the table below, we amortize these
adjustments over the remaining maturities of the respective debt to amortization of debt discount, net on our Consolidated Statements of Operations.
During the years ended December 31, 2012 , 2011 and 2010 , we recorded $118 million , $68 million and $391 million , respectively, in losses from
the early extinguishment of debt, which included the write-off of debt discounts.
Future Maturities
The following table summarizes scheduled maturities of our debt, including current maturities, at December 31, 2012 :
75
(In millions, unless otherwise stated)
Proceeds Received Outstanding at
December 31, 2012
Fixed
Interest Rate
Final Maturity Date 2012 2011 2010
2012-1A EETC
$
354
$
—
$
—
$
354
4.750% May 2020
2012-1B EETC
126
—
—
126
6.875% May 2019
2011-1A EETC
—
293
—
253
5.300% April 2019
2011-1B EETC
—
102
—
102
7.125% October 2014
2010-2A EETC
—
204
270
412
4.950% May 2019
2010-2B EETC
—
135
—
135
6.750% November 2015
2010-1A EETC
—
—
450
383
6.200% July 2018
2010-1B EETC
—
100
—
100
6.375% January 2016
Certificates Issued Prior to 2010
—
—
347
2,449
Total
$
480
$
834
$
1,067
$
4,314
Years Ending December 31,
(in millions) Total Secured and Unsecured Debt Amortization of Debt Discount, net
2013
$
1,600
$
(148
)
2014
1,706
(98
)
2015
1,062
(72
)
2016
1,427
(65
)
2017
2,144
(54
)
Thereafter
4,694
(90
)
Total
$
12,633
$
(527
)
$
12,106