Delta Airlines 2014 Annual Report Download - page 48

Funding. Our funding obligations for qualified defined benefit plans are governed by the Employee Retirement Income Security Act. The Pension
Protection Act of 2006 allows commercial airlines to elect alternative funding rules (“Alternative Funding Rules”) for defined benefit plans that are
frozen. Delta elected the Alternative Funding Rules under which the unfunded liability for a frozen defined benefit plan may be amortized over a fixed
17-year period and is calculated using an 8.85% discount rate.
While the Pension Protection Act makes our funding obligations for these plans more predictable, factors outside our control continue to have an
impact on the funding requirements. Estimates of future funding requirements are based on various assumptions and can vary materially from actual
funding requirements. Assumptions include, among other things, the actual and projected market performance of assets; statutory requirements; and
demographic data for participants. For additional information, see Note 11 of the Notes to the Consolidated Financial Statements.
Recent Accounting Standards
Revenue from Contracts with Customers
In May 2014, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") No. 2014-09, "Revenue from
Contracts with Customers." While the standard supersedes existing revenue recognition guidance, it closely aligns with current GAAP. Under the new
standard, revenue is recognized at the time a good or service is transferred to a customer for the amount of consideration received for that specific good
or service.
It is effective for annual reporting periods beginning after December 15, 2016, including interim reporting periods, and early adoption is not
permitted. Entities may use a full retrospective approach or report the cumulative effect as of the date of adoption. We are currently evaluating the
impact, if any, the adoption of this standard will have on our Consolidated Financial Statements.
Reporting of Amounts Reclassified Out of Accumulated Other Comprehensive Income
In February 2013, the FASB issued ASU No. 2013-02, "Comprehensive Income." The standard revises the reporting of items reclassified out of
accumulated other comprehensive income and is effective for fiscal years beginning after December 15, 2012. We adopted this guidance in the March
2013 quarter and have presented amounts reclassified out of accumulated other comprehensive income in a note to the financial statements. For
additional information, see Note 15.
Presentation of Comprehensive Income
In June 2011, the FASB issued ASU No. 2011-
05, "Presentation of Comprehensive Income." The standard revises the presentation and prominence
of the items reported in other comprehensive income and is effective retrospectively for fiscal years beginning after December 15, 2011. We adopted
this standard in 2012 and have presented comprehensive income in our Consolidated Statements of Comprehensive Income (Loss).
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