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TableofContents
NOTESTOTHECONSOLIDATEDFINANCIALSTATEMENTS
NOTE1.SUMMARYOFSIGNIFICANTACCOUNTINGPOLICIES
Basis of Presentation
DeltaAirLines,Inc.,aDelawarecorporation,providesscheduledairtransportationforpassengersandcargothroughouttheUnitedStates(“U.S.”)andaround
theworld.OurConsolidatedFinancialStatementsincludetheaccountsofDeltaAirLines,Inc.andourwholly-ownedsubsidiariesandhavebeenpreparedin
accordancewithaccountingprinciplesgenerallyacceptedintheU.S.(“GAAP”).Wedonotconsolidatethefinancialstatementsofanycompanyinwhichwehave
anownershipinterestof50%orless.Wearenottheprimarybeneficiaryof,nordowehaveacontrollingfinancialinterestin,anyvariableinterestentity.
Accordingly,wehavenotconsolidatedanyvariableinterestentity.
Wehavemarketingallianceswithotherairlinestoenhanceouraccesstodomesticandinternationalmarkets.Thesearrangementsmayincludecodesharing,
reciprocalfrequentflyerprogrambenefits,sharedorreciprocalaccesstopassengerlounges,jointpromotions,commonuseofairportgatesandticketcounters,
ticketofficeco-locationandothermarketingagreements.Wehavereceivedantitrustimmunityforcertainmarketingarrangements,whichenablesustooffera
moreintegratedroutenetworkanddevelopcommonsales,marketinganddiscountprogramsforcustomers.Someofourmarketingarrangementsprovideforthe
sharingofrevenuesandexpenses.Revenuesandexpensesassociatedwithcollaborativearrangementsarepresentedonagrossbasisintheapplicablelineitemson
ourConsolidatedStatementsofOperations.
Wereclassifiedcertainpriorperiodamountstoconformtothecurrentperiodpresentation.Unlessotherwisenoted,allamountsdisclosedarestatedbefore
considerationofincometaxes.
Use of Estimates
WearerequiredtomakeestimatesandassumptionswhenpreparingourConsolidatedFinancialStatementsinaccordancewithGAAP.Theseestimatesand
assumptionsaffecttheamountsreportedinourConsolidatedFinancialStatementsandtheaccompanyingnotes.Actualresultscoulddiffermateriallyfromthose
estimates.
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.
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