Delta Airlines 2015 Annual Report Download - page 50
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SupplementalInformation
Wesometimesuseinformation("non-GAAPfinancialmeasures")thatisderivedfromtheConsolidatedFinancialStatements,butthatisnotpresentedin
accordancewithGAAP.UndertheU.S.SecuritiesandExchangeCommissionrules,non-GAAPfinancialmeasuresmaybeconsideredinadditiontoresults
preparedinaccordancewithGAAP,butshouldnotbeconsideredasubstitutefororsuperiortoGAAPresults.
Thefollowingtableshowsareconciliationofpre-taxincome(aGAAPmeasure)topre-taxincome,adjustedforspecialitems(anon-GAAPfinancialmeasure).
Weadjustpre-taxincomeforthefollowingitemstodeterminepre-taxincome,adjustedforspecialitems,forthereasonsdescribedbelow:
•MTMadjustmentsandsettlements.MTMadjustmentsaredefinedasfairvaluechangesrecordedinperiodsotherthanthesettlementperiod.Suchfairvalue
changesarenotnecessarilyindicativeoftheactualsettlementvalueoftheunderlyinghedgeinthecontractsettlementperiod.Settlementsrepresentcash
receivedorpaidonhedgecontractssettledduringtheperiod.Theseitemsadjustfuelexpensetoshowtheeconomicimpactofhedging,includingcash
receivedorpaidonhedgecontractsduringtheperiod.Adjustingfortheseitemsallowsinvestorstobetterunderstandandanalyzeourcoreoperational
performanceintheperiodsshown.
•Restructuringandother.Becauseofthevariabilityinrestructuringandother,theadjustmentforthisitemishelpfultoinvestorstoanalyzeourrecurring
coreperformanceintheperiodsshown.
•Lossonextinguishmentofdebt.Weadjustedforlossonextinguishmentofdebtin2014toassistinvestorswiththeiranalysisofourrecurringcorefinancial
performance.
• VirginAtlanticMTMadjustments.WerecordourproportionateshareofearningsfromourequityinvestmentinVirginAtlanticinotherexpense.Weadjust
forVirginAtlantic'sMTMadjustmentstoallowinvestorstobetterunderstandandanalyzeourcorefinancialperformanceintheperiodsshown.
YearEndedDecember31,
(inmillions) 2015 2014
Pre-taxincome $ 7,157 $ 1,072
Adjustedfor:
MTMadjustmentsandsettlements (1,301) 2,346
Restructuringandother 35 716
Lossonextinguishmentofdebt — 268
VirginAtlanticMTMadjustments (26) 134
Pre-taxincome,adjustedforspecialitems $ 5,865 $ 4,536
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