Delta Airlines 2015 Annual Report Download - page 48

TableofContents
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9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."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.Entitiesmayuseafullretrospectiveapproachorreportthecumulativeeffectasofthedateofadoption.
InAugust2015,theFASBissuedASUNo.2015-14,"RevenuefromContractswithCustomers(Topic606):DeferraloftheEffectiveDate,"thatdeferredthe
effectivedatebyoneyeartoDecember15,2017forinterimandannualreportingperiodsbeginningafterthatdate.TheFASBpermittedearlyadoptionofthe
standard,butnotbeforetheoriginaleffectivedateofDecember15,2016.Wearecurrentlyevaluatinghowtheadoptionofthisstandardwillimpactour
ConsolidatedFinancialStatements.
PresentationofDebtIssuanceCosts
During2015,theFASBissuedASUNos.2015-03and2015-15,relatedtosimplifyingthepresentationofdebtissuancecosts.Thesestandardsamendexisting
guidancetorequirethepresentationofdebtissuancecostsinthebalancesheetasadeductionfromthecarryingamountoftherelateddebtliabilityinsteadofasa
deferredcharge.ItiseffectiveforannualreportingperiodsbeginningafterDecember15,2015,butearlyadoptionispermitted.Weearlyadoptedthesestandardsin
theDecember2015quarter,whichweaccountedforasachangeinaccountingprincipleandappliedtheguidanceretrospectively.Thischangeresultsina
reclassificationof$32millionfromprepaidexpensesandothertocurrentmaturitiesoflong-termdebtandcapitalleasesand$84millionfromothernoncurrent
assetstolong-termdebtandcapitalleasesasofDecember31,2014.
DisclosuresforInvestmentsinCertainEntitiesThatCalculateNetAssetValueperShare
InMay2015,theFASBissuedASUNo.2015-07,"DisclosuresforInvestmentsinCertainEntitiesThatCalculateNetAssetValueperShare(orIts
Equivalent)."Underthenewstandard,investmentsforwhichfairvalueismeasuredatnetassetvaluepershare(oritsequivalent)usingthepracticalexpedientwill
nolongerbecategorizedinthefairvaluehierarchy.ItiseffectiveforinterimandannualreportingperiodsbeginningafterDecember15,2015,butearlyadoption
ispermitted.WewilladoptthisstandardeffectiveJanuary1,2016.WearecurrentlyassessinghowtheadoptionofthisstandardwillimpactourConsolidated
FinancialStatementsasourpensionplanhasasignificantnumberofinvestmentsmeasuredatnetassetvalue.
BalanceSheetClassificationofDeferredTaxes
InNovember2015,theFASBissuedASUNo.2015-17,"BalanceSheetClassificationofDeferredTaxes."Thisstandardrequiresthatdeferredtaxliabilities
andassetsbeclassifiedasnoncurrentonthebalancesheet.ItiseffectiveforinterimandannualperiodsbeginningafterDecember15,2016,butearlyadoptionis
permitted.WeearlyadoptedthisstandardintheDecember2015quarter,whichweaccountedforasachangeinaccountingprincipleandappliedtheguidance
retrospectively.Thischangeresultsinthereclassificationof$3.3billionfromcurrentassetstodeferredincometaxes,netinotherassetsonourDecember31,2014
ConsolidatedBalanceSheet.
FinancialInstruments
InJanuary2016,theFASBissuedASUNo.2016-01,"FinancialInstruments—Overall(Subtopic825-10)."Thisstandardmakesseveralmodificationsto
Subtopic825-10includingtheeliminationoftheavailable-for-saleclassificationofequityinvestments,andrequiresequityinvestmentswithreadilydeterminable
fairvaluestobemeasuredatfairvaluewithchangesinfairvaluerecognizedinnetincome.ItiseffectiveforinterimandannualperiodsbeginningafterDecember
15,2017.
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