Note A: The following tables show reconciliations of non-GAAP financial measures. The reasons Delta uses these measures are described below.
• Delta completed its merger with Northwest Airlines on October 29, 2008. Accordingly, Delta's financial results under GAAP include the results of Northwest Airlines for the period January 1, 2009 through September 30, 2009.
Under GAAP, Delta does not include in its financial results the results of Northwest Airlines prior to the completion of the merger. Accordingly, Delta's financial results under GAAP for the September 2008 quarter do not include the results of Northwest Airlines for that period. This impacts the comparability of Delta's financial statements under GAAP for the September 2009 and 2008 quarters.
Delta presents its financial results for the September 2009 and September 2008 quarters under GAAP as well as on a "combined basis." "Combined basis" means the company combines the financial results of Delta and Northwest as if the merger had occurred prior to the beginning of the applicable period. Delta believes presenting this financial information on a combined basis provides a more meaningful basis for comparing Delta's year-over-year financial performance than the GAAP financial information.
This press release also includes guidance for the December 2009 quarter. Please note the year-over-year guidance comparisons assume the 2008 financial statements for the applicable periods were prepared on a combined basis, excluding special items and out-of-period fuel hedge losses. Delta is unable to reconcile certain forward-looking projections to GAAP, including projected consolidated cost per available seat mile (CASM) and Mainline non-fuel CASM, as the nature or amount of special items cannot be estimated at this time.
• Delta excludes special items because management believes the exclusion of these items is helpful to investors to evaluate the company's recurring operational performance.
• Delta excludes non-cash mark-to-market (MTM) adjustments related to fuel hedges settling in future periods in order to present financial results related to operations in the period shown.
• Delta presents consolidated and Mainline CASM excluding fuel expense and related taxes because management believes the volatility in fuel prices impacts the comparability of year-over-year financial performance.
• Consolidated and Mainline CASM excludes ancillary businesses not associated with the generation of a seat mile. These transactions include expenses related to Delta's providing maintenance and staffing services to third parties, dedicated freighter operations and Delta's vacation wholesale operations.
• Delta presents net capital expenditures because management believes this metric is helpful to investors to evaluate the company's investing activities.