Originally Posted by
flyboycpa
I'm not a Delta guy, but I am a reformed accountant-turned Continental [ok...United] pilot. See my explanations in RED, above.
Not to pick nits here, but to say $10B+ in debt reduction is a bit misleading to the general public.
As you may (or may not) know, the Balance Sheet is a simple formula:
TOTAL ASSETS (STUFF YOU HAVE)=TOTAL LIABILITIES (STUFF YOU OWE) + TOTAL EQUITY (NET DIFFERENCE) +/- CURRENT PERIOD NET INCOME (or LOSS)
All that being said, I'm not bashing Delta, quite the opposite. They are performing like mad currently, and I hope you folks get everything you can [and the rising tide helps us, too]. That's also not to say that the Delta management couldn't use those monies shown above to reduce debt by $10B+, just that they aren't currently. I'm just clarifying a bit.
fb
Your notes are 100% correct. I did not intend to create a ledger.
The $10B is total debt reduction since 2009.
The list following is an abbreviated statement of cash flows if you prefer. I was not intending for the total to be $10B but if you add them up its close and I can see how that could be read as you saw it. The ongoing use of cash is evidence of the ability to afford a restorative contract without concessions.
Good to know there are accountants challenging and vetting this information. If you want to help explain the ancillary revenues and how their growth is captured in profit sharing and not in pay rates that would be great. The 10Q from the June quarter has all the info, 22% growth YOY. The truth only affirms our case, Thanks.
FTB thank you as well.