Delta Airlines 2013 Annual Report Download - page 54

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At December 31, 2013 , we had $4.9 billion of fixed-rate long-term debt and $6.3 billion of variable-rate long-term debt. An increase of 100
basis points in average annual interest rates would have decreased the estimated fair value of our fixed-rate long-term debt by $210 million at
December 31, 2013 and would have increased the annual interest expense on our variable-rate long-term debt by $44 million, exclusive of the
impact of our interest rate hedge contracts.
Foreign Currency Exchange Risk
We are subject to foreign currency exchange rate risk because we have revenue and expense denominated in foreign currencies with our
primary exposures being the Japanese yen and Canadian dollar. To manage exchange rate risk, we execute both our international revenue and
expense transactions in the same foreign currency to the extent practicable. From time to time, we may also enter into foreign currency option
and forward contracts. At December 31, 2013 , we had open foreign currency forward contracts totaling a $257 million asset position. We
estimate that a 10% depreciation or appreciation in the price of the Japanese yen and Canadian dollar in relation to the U.S. dollar would change
the projected cash settlement value of our open hedge contracts by a $80 million gain or $100 million loss, respectively, for the year ending
December 31, 2014.
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