Delta Airlines 2015 Annual Report Download - page 35
Download and view the complete annual report
Please find page 35 of the 2015 Delta Airlines annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.TableofContents
RegionalCarriersExpense.Thereductioninregionalcarriersexpenseisprimarilyduetolowerfuelcostfromadecreaseinthepricepergallonoffuel,lower
capacityandreducedmaintenanceexpenses.During2015,weremovedthirty50-seatregionalaircraftaspartofourstrategytorestructureourdomesticfleet.
ContractedServices.Theincreaseincontractedservicesexpensepredominantlyrelatedtocostsassociatedwiththe3.0%increaseincapacityandadditional
temporarystaffing.
DepreciationandAmortization.Depreciationandamortizationexpenseincreasedyear-over-yearprimarilyduetoinvestmentsinnewA330-300,B-737-900ER
andCRJ-900aircraftandaircraftmodificationsthatupgradedaircraftinteriorsandenhancedourproductoffering.
LandingFeesandOtherRents.Landingfeesandotherrentsincreasedprincipallyduetoincreasednumberofdeparturesandhigherrentalrates.
ProfitSharing.Theincreaseinprofitsharingisdrivenbyanincreaseinfullyearpre-taxincomecomparedtotheprioryear.Ourbroad-basedemployeeprofit
sharingprogramprovidesthat,foreachyearinwhichwehaveanannualpre-taxprofit,asdefinedbythetermsoftheprogram,wewillpayaspecifiedportionof
thatprofittoemployees.Indeterminingtheamountofprofitsharing,theprogramdefinesprofitaspre-taxprofitadjustedforprofitsharingandcertainotheritems.
Foryearspriorto2016,ourprofitsharingprogrampaid10%toemployeesforthefirst$2.5billionofannualprofitand20%ofannualprofitabove$2.5billion.
Beginningwith2016pre-taxprofit(tobepaidoutin2017),theprofitsharingformulawillbeadjustedtopay10%ofannualpre-taxprofit(asdefinedbythe
termsoftheprogram)and,ifweexceedourprior-yearresults,theprogramwillpay20%oftheyear-over-yearincreaseinpre-taxprofittoeligibleemployees.The
profitsharingprogramforpilotsremainsunchangedandwillcontinuein2016underitsterms.
PassengerService.Passengerserviceexpenseincludesthecostsforonboardfoodandbeverage,cleaningandsupplies.Thisexpenseincreasedyear-over-year
primarilyduetocostsassociatedwithenhancementstoouronboardproductofferingandthe3.3%increaseintraffic.
Other.Otheroperatingexpenseincreasedprimarilyduetocostsassociatedwithsalesofnon-jetfuelproductstothirdpartiesbyouroilrefinery.
31