Delta Airlines 2015 Annual Report Download - page 96

Download and view the complete annual report

Please find page 96 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.

Page out of 191

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110
  • 111
  • 112
  • 113
  • 114
  • 115
  • 116
  • 117
  • 118
  • 119
  • 120
  • 121
  • 122
  • 123
  • 124
  • 125
  • 126
  • 127
  • 128
  • 129
  • 130
  • 131
  • 132
  • 133
  • 134
  • 135
  • 136
  • 137
  • 138
  • 139
  • 140
  • 141
  • 142
  • 143
  • 144
  • 145
  • 146
  • 147
  • 148
  • 149
  • 150
  • 151
  • 152
  • 153
  • 154
  • 155
  • 156
  • 157
  • 158
  • 159
  • 160
  • 161
  • 162
  • 163
  • 164
  • 165
  • 166
  • 167
  • 168
  • 169
  • 170
  • 171
  • 172
  • 173
  • 174
  • 175
  • 176
  • 177
  • 178
  • 179
  • 180
  • 181
  • 182
  • 183
  • 184
  • 185
  • 186
  • 187
  • 188
  • 189
  • 190
  • 191

TableofContents
NOTE13.ACCUMULATEDOTHERCOMPREHENSIVELOSS
Thefollowingtableshowsthecomponentsofaccumulatedothercomprehensiveloss:
(inmillions)
Pensionand
OtherBenefits
Liabilities(2)
Derivative
Contracts(3) Investments Total
BalanceatJanuary1,2013 $ (8,307) $ (263) $ (7) $ (8,577)
Changesinvalue(netoftaxeffectof$0) 2,760 296 (19) 3,037
Reclassificationintoearnings(netoftaxeffectof$321)(1) 224 186 — 410
BalanceatDecember31,2013 (5,323) 219 (26) (5,130)
Changesinvalue(netoftaxeffectof$1,276) (2,267) 83 10 (2,174)
Reclassificationintoearnings(netoftaxeffectof$4)(1) 73 (80) — (7)
BalanceatDecember31,2014 (7,517) 222 (16) (7,311)
Changesinvalue(netoftaxeffectof$41) 10 43 (45) 8
Reclassificationintoearnings(netoftaxeffectof$16)(1) 153 (125) — 28
BalanceatDecember31,2015 $ (7,354) $ 140 $ (61) $ (7,275)
(1) AmountsreclassifiedfromAOCIforpensionandotherbenefitsarerecordedinsalariesandrelatedcostsintheConsolidatedStatementsofOperations.AmountsreclassifiedfromAOCIfor
derivativecontractsdesignatedasforeigncurrencycashflowhedgesandinterestratecashflowhedgesarerecordedinpassengerrevenueandinterestexpense,net,respectively,inthe
ConsolidatedStatementsofOperations.
(2)Includes$1.9billionofdeferredincometaxexpense,primarilyrelatedtopensionobligations,thatwillnotberecognizedinnetincomeuntilthepensionobligationsarefullyextinguished.
(3)Included$321millionofdeferredincometaxexpensethatremainedinAOCIuntilDecember2013whenallamountsinAOCIthatrelatedtoderivativecontractsdesignatedasfuelcash
flowhedgeswererecognizedintheConsolidatedStatementofOperations.
NOTE14.SEGMENTSANDGEOGRAPHICINFORMATION
Operatingsegmentsaredefinedascomponentsofanenterpriseaboutwhichseparatefinancialinformationisavailablethatisevaluatedregularlybythechief
operatingdecisionmaker,ordecisionmakinggroup,andisusedinresourceallocationandperformanceassessments.Ourchiefoperatingdecisionmakeris
consideredtobeourexecutiveleadershipteam.Ourexecutiveleadershipteamregularlyreviewsdiscreteinformationforourtwooperatingsegments,whichare
determinedbytheproductsandservicesprovided:ourairlinesegmentandourrefinerysegment.
Airline Segment
OurairlinesegmentismanagedasasinglebusinessunitthatprovidesscheduledairtransportationforpassengersandcargothroughouttheU.S.andaroundthe
worldandotherancillaryairlineservices.Thisallowsustobenefitfromanintegratedrevenuepricingandroutenetwork.Ourflightequipmentformsonefleet,
whichisdeployedthroughasinglerouteschedulingsystem.Whenmakingresourceallocationdecisions,ourchiefoperatingdecisionmakerevaluatesflight
profitabilitydata,whichconsidersaircrafttypeandrouteeconomics,butgivesnoweighttothefinancialimpactoftheresourceallocationdecisiononanindividual
carrierbasis.Ourobjectiveinmakingresourceallocationdecisionsistooptimizeourconsolidatedfinancialresults.
Refinery Segment
InJune2012,ourwholly-ownedsubsidiaries,MonroeEnergy,LLC,andMIPC,LLC(collectively,“Monroe”),acquiredtheTraineroilrefineryandrelated
assetslocatednearPhiladelphia,Pennsylvaniafor$180millionaspartofourstrategytomitigatethecostoftherefiningmarginreflectedinthepriceofjetfuel.
TheacquisitionincludedpipelinesandterminalassetsthatallowtherefinerytosupplyjetfueltoourairlineoperationsthroughouttheNortheasternU.S.,including
ourNewYorkhubsatLaGuardiaandJFK.Monroereceiveda$30milliongrantfromtheCommonwealthofPennsylvania.
Weaccountedfortherefineryacquisitionasabusinesscombination.Therefinery,pipelinesandterminalassetsacquiredwererecordedat$180millionin
propertyandequipment,netbasedontheirrespectivefairvaluesontheclosingdateofthetransaction.
90