$4 Billion Dollar Debt Goal Reached
09-23-2015 | 04:37 AM
#31
The Brown Dot +1
Joined: Jun 2009
Posts: 7,775
Likes: 0
From: 777B
Yes, and no, they don't need permission via the contract, however, labor law prevents it, unless they have specific permission in section 1. You have to look at section 1 as, "all flying is covered by dalpa pilots except _____". Section 1 doesn't read, "all flying is permitted except these aircraft will be flown by dalpa pilots". Unless you work for Alaska Airlines, who has the worst scope contract in history.
10-08-2015 | 01:26 PM
#32
Gets Weekends Off
Joined: Oct 2007
Posts: 125
Likes: 0
Delta has paid $10B+ in debt reduction in 6 years now saving $700M in interest a year.
$1.6B per year in debt reduction continues...YES..DEBT REDUCTION
$2B in shareholder returns per year continues NO...REDUCTION IN EQUITY IS NOT A REDUCTION IN LIABILITY
$1.5B+ invested in other airlines NO...IT IS MONEY SPENT FOR AN ASSET (unless the money is being borrowed)
$2B in fuel savings this year even after hedge losses NO...FUEL SAVINGS ARE AN EXPENSE REDUCTION, NOT LIABILITY REDUCTION
$2.5 -$3B annually into fleet, facilities and tech NO...THIS IS NOT A REDUCTION IN LIABILITIES (unless monies are being borrowed for this)
$1B in pension funding (which 65% of pilots don't benefit from)YES...THIS IS A LIABILITY REDUCTION
•Strong operating cash flow, combined with disciplined capital spending, produces sustainable free cash flow of $4-5 billion annually
$1.6B per year in debt reduction continues...YES..DEBT REDUCTION
$2B in shareholder returns per year continues NO...REDUCTION IN EQUITY IS NOT A REDUCTION IN LIABILITY
$1.5B+ invested in other airlines NO...IT IS MONEY SPENT FOR AN ASSET (unless the money is being borrowed)
$2B in fuel savings this year even after hedge losses NO...FUEL SAVINGS ARE AN EXPENSE REDUCTION, NOT LIABILITY REDUCTION
$2.5 -$3B annually into fleet, facilities and tech NO...THIS IS NOT A REDUCTION IN LIABILITIES (unless monies are being borrowed for this)
$1B in pension funding (which 65% of pilots don't benefit from)YES...THIS IS A LIABILITY REDUCTION
•Strong operating cash flow, combined with disciplined capital spending, produces sustainable free cash flow of $4-5 billion annually
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
10-08-2015 | 03:23 PM
#33
veut gagner à la loterie
Joined: Apr 2008
Posts: 23,286
Likes: 0
From: Light Chop
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
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
They went from $17B in debt in 2009 to $7B in debt this year and estimate to be at $4B in debt by the end of 2017.
In addition to that, they're doing all the other things Enuf mentioned. Borrowing from the 10K
During 2014, we generated $4.9 billion in cash from operating activities, which we used, along with existing cash, to reduce the principal on our debt and capital lease obligations by $1.9 billion (FTB: $1.6B was debt reduction), fund capital expenditures of $2.2 billion and return $1.4 billion to shareholders, while maintaining a solid liquidity position.
Last edited by forgot to bid; 10-08-2015 at 03:33 PM.
10-08-2015 | 03:28 PM
#34
Gets Weekends Off
Joined: Jul 2009
Posts: 1,044
Likes: 3
From: Lowest Pay I Could Find
Delta has paid $10B+ in debt reduction in 6 years now saving $700M in interest a year.
$1.6B per year in debt reduction continues
$2B in shareholder returns per year continues
$1.5B+ invested in other airlines
$2B in fuel savings this year even after hedge losses
$2.5 -$3B annually into fleet, facilities and tech
$1B in pension funding (which 65% of pilots don't benefit from)
•Strong operating cash flow, combined with disciplined capital spending, produces sustainable free cash flow of $4-5 billion annually
$1.6B per year in debt reduction continues
$2B in shareholder returns per year continues
$1.5B+ invested in other airlines
$2B in fuel savings this year even after hedge losses
$2.5 -$3B annually into fleet, facilities and tech
$1B in pension funding (which 65% of pilots don't benefit from)
•Strong operating cash flow, combined with disciplined capital spending, produces sustainable free cash flow of $4-5 billion annually
10-08-2015 | 03:34 PM
#35
veut gagner à la loterie
Joined: Apr 2008
Posts: 23,286
Likes: 0
From: Light Chop
10-08-2015 | 08:13 PM
#36
Racketeer
Joined: Mar 2015
Posts: 13,339
Likes: 828
From: N60.4858 W149.9327
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
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
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.
Last edited by notEnuf; 10-08-2015 at 08:30 PM.
10-08-2015 | 09:05 PM
#37
Racketeer
Joined: Mar 2015
Posts: 13,339
Likes: 828
From: N60.4858 W149.9327
Here's my source if you would like to see where I got most of the numbers. The info is in the 2014 10K and the 2015 June 10Q also but this is easier to look at.
http://ir.delta.com/files/doc_presen...esentation.pdf
http://ir.delta.com/files/doc_presen...esentation.pdf
10-09-2015 | 11:04 AM
#39
Gets Weekends Off
Joined: Oct 2007
Posts: 125
Likes: 0
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.
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.
fb
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