Delta Airlines 2014 Annual Report Download - page 49

Supplemental Information
We sometimes use information ("non-GAAP financial measures") that is derived from the Consolidated Financial Statements, but that is not
presented in accordance with GAAP. Under the U.S. Securities and Exchange Commission rules, non-GAAP financial measures may 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 pre-tax income (a GAAP measure) to pre-tax income, adjusted (a non-GAAP financial measure). We
exclude the following items from pre-tax income to determine pre-tax income, adjusted for the reasons described below:
44
•
MTM adjustments.
MTM adjustments are based on market prices at 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 the company's core operational performance in the periods
shown.
•
Restructuring and other.
Because of the variability in restructuring and other, the exclusion of this item is helpful to investors to analyze our
recurring core operational performance in the periods shown.
•
Loss on extinguishment of debt.
Because of the variability in loss on extinguishment of debt, the exclusion of this item is helpful to investors to
analyze the company's recurring core operational performance in the periods shown.
• Virgin Atlantic MTM adjustments . We record our proportionate share of earnings from our equity investment in Virgin Atlantic in other
expense. We exclude Virgin Atlantic's MTM adjustments to allow investors to better understand and analyze the company’s financial
performance in the periods shown.
Year Ended December 31,
(in millions) 2014 2013
Pre-tax income
$
1,072
$
2,527
Items excluded:
MTM adjustments
2,346
(276
)
Restructuring and other
716
424
Loss on extinguishment of debt
268
—
Virgin Atlantic MTM adjustments
134
—
Pre-tax income, adjusted
$
4,536
$
2,675