DELTA AIR LINES, INC. - 10-K filing on 2020-02-13

Summary of Significant Accounting Policies (Tables)

12 Months Ended

Dec. 31, 2019

Schedule of information related to derivative contracts

The following table summarizes the risk hedged and the classification of related gains and losses in our income statement, by each type of derivative contract:


Derivative Type	Hedged Risk	Classification of Gains and Losses
Fuel hedge contracts	Fluctuations in fuel prices	Aircraft fuel and related taxes
Interest rate contracts	Increases in interest rates	Interest expense, net
Foreign currency exchange contracts	Fluctuations in foreign currency exchange rates	Passenger revenue or non-operating expense (See Note 5)

The following table summarizes the accounting treatment of our derivative contracts:


Accounting Designation			Impact of Unrealized Gains and Losses
Not designated as hedges			Change in fair value⁽¹⁾ of hedge is recorded in earnings
Designated as cash flow hedges			Market adjustments are recorded in AOCI
Designated as fair value hedges			Market adjustments are recorded in debt and finance leases

⁽¹⁾Including settled gains and losses as well as mark-to-market adjustments ("MTM adjustments").

Summary of property and equipment

The following table summarizes our property and equipment:


		December 31,
(in millions, except for estimated useful life)	Estimated Useful Life	2019		2018
Flight equipment	20-34 years	$	36,713	$	33,898
Ground property and equipment	3-40 years	5,721		4,667
Information technology-related assets	3-15 years	3,276		3,361
Flight and ground equipment under finance leases	Shorter of lease term or estimated useful life	1,608		1,055
Advance payments for equipment		1,019		1,177
Less: accumulated depreciation and amortization⁽¹⁾		(17,027)		(15,823)
Total property and equipment, net		$	31,310	$	28,335

⁽¹⁾Includes accumulated amortization for flight and ground equipment under finance leases in the amount of $546 million and $566 million at December 31, 2019 and 2018, respectively.