Delta Airlines 2015 Annual Report Download - page 97
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Ourrefinerysegmentoperatesforthebenefitoftheairlinesegmentbyprovidingjetfueltotheairlinesegmentfromitsownproductionandthroughjetfuel
obtainedthroughagreementswiththirdparties.Therefinery'sproductionconsistsofjetfuel,aswellasnon-jetfuelproducts.Weuseseveralcounterpartiesto
exchangethenon-jetfuelproductsproducedbytherefineryforjetfuelconsumedinourairlineoperations.Thegrossfairvalueoftheproductsexchangedunder
theseagreementsduringtheyearsendedDecember31,2015,2014and2013was$3.1billion,$5.1billionand$5.4billion,respectively.
Segment Reporting
Segmentresultsarepreparedbasedonourinternalaccountingmethodsdescribedbelow,withreconciliationstoconsolidatedamountsinaccordancewith
GAAP.Oursegmentsarenotdesignedtomeasureoperatingincomeorlossdirectlyrelatedtotheproductsandservicesincludedineachsegmentonastand-alone
basis.
(inmillions) Airline Refinery
Intersegment
Sales/Other
Consolidated
YearEndedDecember31,2015
Operatingrevenue: $ 40,398 $ 4,741
$ 40,704
Salestoairlinesegment
$ (990) (1)
Exchangedproducts
(3,108) (2)
Salesofrefinedproductstothirdparties
(337) (3)
Operatingincome(4) 7,512 290
7,802
Interestexpense,net 481 —
481
Depreciationandamortization 1,805 30
1,835
Totalassets,endofperiod 51,785 1,349
53,134
Capitalexpenditures 2,853 92
2,945
YearEndedDecember31,2014
Operatingrevenue: $ 40,217 $ 6,959
$ 40,362
Salestoairlinesegment
$ (1,313) (1)
Exchangedproducts
(5,104) (2)
Salesofrefinedproductstothirdparties
(397) (3)
Operatingincome(4) 2,110 96
2,206
Interestexpense,net 650 —
650
Depreciationandamortization 1,745 26
1,771
Totalassets,endofperiod 52,896 1,109
54,005
Capitalexpenditures 2,184 65
2,249
YearEndedDecember31,2013
Operatingrevenue: $ 37,773 $ 7,003
$ 37,773
Salestoairlinesegment
$ (1,156) (1)
Exchangedproducts
(5,352) (2)
Salesofrefinedproductstothirdparties
(495) (3)
Operatingincome(loss)(4) 3,516 (116)
3,400
Interestexpense,net 852 —
852
Depreciationandamortization 1,641 17
1,658
Totalassets,endofperiod 50,932 1,172
52,104
Capitalexpenditures 2,516 52
2,568
(1) Representstransfers,valuedonamarketpricebasis,fromtherefinerytotheairlinesegmentforuseinairlineoperations.Wedeterminemarketpricebyreferencetothemarketindexforthe
primarydeliverylocation,whichisNewYorkHarbor,forjetfuelfromtherefinery.
(2) Representsvalueofproductsdeliveredunderourexchangeagreements,asdiscussedabove,determinedonamarketpricebasis.
(3) Representssalesofrefinedproductstothirdparties.Thesesaleswereatornearcost;accordingly,themarginonthesesalesisdeminimis.
(4) Includestheimpactofpricingarrangementsbetweentheairlineandrefinerysegmentswithrespecttotherefinery'sinventorypricerisk.
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