Capital structure notes Debt Equity Grant Rate Interest Dilution Notes

1) Current debt 5,083 5.0% 254 -

DCF MODEL
2) Credit facility drawdown 2,155 5.0% 108 -
3) Payroll Support Program (PSP) 1,600 0.0% -
4) Low interest note 948 1.0% 9 3
5) April 29, senior notes 2,000 5.3% 105 -
6) Convertible Bonds 2,000 1.3% 25 52
7) Equity issuance 2,000 - 70
8) Additional CARES /PSP 2,800 3.5% 98 8
Total debt & other 14,986 2,000 1,600 599 132.2

Consolidated Balance Sheet Pro forma Historical

Consolidated Statement of Profit & Loss Pro forma Historical

Consolidated Statement of Cash Flows Pro forma Historical

CASH FLOWS FROM OPERATING ACTIVITIES: Pro forma Ending April Ending April Dec. 31, Dec. 31, Dec. 31,
(2023) 2022 2021 2019 2018 2017
Net income 790 365 (4,736) 2,300 2,465 3,357
Adjustments to reconcile net income to cash provided by (used in) operating activities:
Depreciation and amortization 1,219 1,219 1,219 1,219 1,201 1,218
Boeing 737-300 aircraft grounding charge - - - 63
Unrealized/realized gains on fuel derivative instruments - - (14) (50)
Deferred income taxes (55) 301 (1,066)
Changes in certain assets and liabilities:
Accounts and other receivables (213) (184) 609 (94) 117 (102)
Other assets (155) 352 559 239 (227) (262)
Accounts payable and accrued liabilities 624 103 (1,351) 298 545 233
Air traffic liability - 440 506 343
Other liabilities (277) - -
Cash collateral received from (provided to) derivative counterparties 25 (15) 316
Other, net (108) 14 (121)
Net cash provided by operating activities 2,265 1,856 (3,700) 3,987 4,893 3,929
Net cash used in investing activities
Capital expenditures (1,106) (1,106) (1,106) (1,027) (1,922) (2,123)
Supplier proceeds - 400 - -
Assets constructed for others - - (54) (126)
Purchases of short-term investments - (2,122) (2,409) (2,380)
Proceeds from sale of short-term and other investments - 2,446 2,342 2,221
Other, net - - 5 -
Net cash used in investing activities (1,106) (1,106) (1,106) (303) (2,038) (2,408)
Net cash used in financing activities
Proceeds from issuance of long-term debt - - - 600
Proceeds from Employee stock plans - 40 35 29
Reimbursement for assets constructed for others - - 170 126
Payments of long-term debt and finance lease obligations -5000 -5000 - (615) (342) (592)
Payments of cash dividends - 372 332 274
Repayment of construction obligation - - (30) (10)
Repurchase of common stock - (2,000) (2,000) (1,600)
Other, net - (43) 3 15
Net cash used in financing activities (5,000) (5,000) - (2,990) (2,496) (1,706)
NET CHANGE IN CASH AND CASH EQUIVALENTS (3,841) (4,250) (4,806) 694 359 (185)
CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD 9,991 14,242 19,048 1,854 1,495 1,680
CASH AND CASH EQUIVALENTS AT END OF PERIOD 6,151 9,991 14,242 2,548 1,854 1,495

Discounted Cash Flow for Equity

YEAR 1 2 3 4 5

Operating income (5,484) 909 1,281

Interst expense 436 452 293
Earnings before taxes (5,920) 457 988
Taxes 1,184 (91) (198)
+depreciation 1,219 1,219 1,219
-Capex (1,106) (1,106) (1,106)
Change in NWC (183) 271 256
2372 2372
Debt repaid - -5000 -5000 -2372 0
FCFE (4,806) (4,250) (3,841) 0
Terminal and Terminal growth 2% 29650
Discount rate 10% 1.100 1.210 1.331 1.464
PV $ 9,484 $ (4,369) $ (3,513) $ (2,886) $ - 20,251
S/O $ 639
Value $ 14.8

Ratios 12 Months Ended

1) Working capital 2020 Dec-19 Dec-18
a) Working capital Assets 1,483 1,902
b) Working capital liabilities 7,446 8,133
c) Working capital (a) - (b) (5,963) (6,231)
d) Working capital as a % of sales -26.59% -28.37%

2) Capital Expenditures Notes

a) Original commitments 2106
b) Modificaitons 1000 company says it has reduced capital spending by 100 Crore
c) Total cap-ex 1106 1106 1106

3) Average pay 2020 2019

a) Pay 2019 8,293
b) Employees 24.32 60.8 0.4 60,800 active fulltime equivalent Employees, consisting of approximately 25,900 flight, 3,200 maintenance, 21,000 ground, Customer, and fleet service, and 10,700 management, technology, finance, marketing, and clerical personnel
c) Average pay (thousands) 136.39802632
c) Eligible Severance employees (in thousands) $ 30.28 83% of employees are part of unions
e) Severance pay (in millions) 556 2 weeks + 5