Delta Airlines 2013 Annual Report Download - page 51

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Supplemental Information
We sometimes use information that is derived from the Consolidated Financial Statements, but that is not presented in accordance with
GAAP. Certain of this information is considered to be “non-GAAP financial measures” under the U.S. Securities and Exchange Commission
rules. The non-GAAP financial measures should be considered in addition to results prepared in accordance with GAAP, but should not be
considered a substitute for or superior to GAAP results.
The following table shows a reconciliation of CASM (a GAAP measure) to CASM-Ex (a non-GAAP financial measure). We exclude the
following items from CASM to determine CASM-Ex for the reasons described:
45
•
Aircraft fuel and related taxes.
The volatility in fuel prices impacts the comparability of year-over-year financial performance. The
exclusion of aircraft fuel and related taxes from this measure (including our regional carriers under capacity purchase arrangements)
allows investors to better understand and analyze our non-fuel costs and our year-over-year financial performance.
•
Ancillary businesses
. Our ancillary businesses include aircraft maintenance and staffing services we provide to third parties and our
vacation wholesale operations. Because these businesses are not related to the generation of a seat mile, we exclude the costs related to
these businesses from this measure to provide a more meaningful comparison of the costs of our airline operations to the rest of the airline
industry.
•
Profit sharing.
We exclude profit sharing because this exclusion allows investors to better understand and analyze our recurring cost
performance and provides a more meaningful comparison of our core operating costs to the airline industry.
•
Restructuring and other items.
Because of the variability in restructuring and other items, the exclusion of this item from this measure is
helpful to investors to analyze our core operational performance in the periods shown.
•
MTM adjustments.
MTM adjustments are based on market prices as of the end of the reporting period for contracts settling in future
periods . Such market prices are not necessarily indicative of the actual future value of the underlying hedge in the contract settlement
period. Therefore, excluding these adjustments allows investors to better understand and analyze our costs for the periods reported.
Year Ended December 31,
2013 2012
CASM
14.77
¢
14.97
¢
Items excluded:
Aircraft fuel and related taxes
(5.04
)
(5.32
)
Ancillary businesses
(0.32
)
(0.38
)
Profit sharing
(0.22
)
(0.16
)
Restructuring and other items
(0.17
)
(0.20
)
MTM adjustments
0.12
0.01
CASM-Ex
9.14
¢
8.92
¢