Delta Airlines 2013 Annual Report Download - page 79

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Domestic Slots. In December 2011, we and US Airways exchanged takeoff and landing rights at LaGuardia Airport ("LaGuardia") and
Reagan National airports. Under the agreement, (1) we acquired 132 slot pairs at LaGuardia from US Airways and (2) US Airways acquired
from us 42 slot pairs at Reagan National and $67 million in cash. Additionally, we divested 16 slot pairs at LaGuardia and eight slot pairs at
Reagan National to airlines with limited or no service at those airports and received $90 million in cash proceeds from the sale of the divested
slot pairs. The divestiture of these slot pairs resulted in the recognition of a $43 million gain during the December 2011 quarter in restructuring
and other items on our Consolidated Statement of Operations. This gain was offset by a $50 million
impairment charge recorded on our Moscow
slots, for a net $7 million loss recorded during 2011.
The 132 slot pairs at LaGuardia acquired in 2011 were recorded at fair value. We estimated their fair value using a combination of limited
market transactions and the lease savings method, which is an income approach. These assets are classified in Level 3 of the fair value hierarchy.
The carrying value related to the 42 slot pairs at Reagan National acquired by US Airways was removed from our indefinite-lived intangible
assets. In approving the transaction, the Department of Transportation restricted our use of the exchanged slots. We recorded a $78 million
deferred gain in December 2011. We recognized this deferred gain in 2012 as the restrictions lapsed.
Definite
-Lived Intangible Assets
Amortization expense for each of the years ended December 31, 2013 , 2012 and 2011 was approximately $70 million
. The following table
summarizes the estimated aggregate amortization expense for each of the five succeeding fiscal years:
71
December 31, 2013
December 31, 2012
(in millions)
Gross
Carrying
Amount
Accumulated
Amortization
Gross
Carrying
Amount
Accumulated
Amortization
Marketing agreements
$
730
$
(602
)
$
730
$
(545
)
Contracts
193
(83
)
193
(72
)
Other
53
(53
)
53
(53
)
Total
$
976
$
(738
)
$
976
$
(670
)
Years Ending December 31,
(in millions)
2014
$
67
2015
67
2016
9
2017
9
2018
8