Delta Airlines 2014 Annual Report Download - page 53

At December 31, 2014 , we had $4.1 billion of fixed-rate long-term debt and $5.4 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 $170 million at December 31,
2014 and would have increased the annual interest expense on our variable-rate long-term debt by $42 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, 2014 , we had open foreign currency forward contracts totaling a $73 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 $60 million gain or $80 million loss, respectively, for the year ending December 31, 2015.
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