Depreciation at Delta - A

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Exhibit 1 Delta Air Lines: Key Financial and Operational Data ($ millions)

For the fiscal years ending June 30

1993 1992 1991 1990 1989

Total assets 11,871 10,162 8,411 7,227 6,484

Fixed assets 7,141 7,093 5,641 5,399 4,478
Fixed assets/Total assets 60.2% 69.8% 67.1% 74.7% 69.1%

Long-term debt (including capital leases) 3,717 2,833 2,058 1,315 703
Total debt/Total assets 31.3% 27.9% 24.5% 18.2% 10.8%

Total operating revenues 11,997 10,837 9,170 8,582 8,089

Total operating expenses 12,572 11,512 9,621 8,163 7,411
Depreciation expense for fixed assets 679 585 512 453 378
Depreciation expense/
Total operating expense 5.4% 5.1% 5.3% 5.5% 5.1%

Operating profit (575) (674) (450) 420 678

Operating profit/Revenues -4.8% -6.2% -4.9% 4.9% 8.4%

Gain on sale of flight equipment (pretax) 65 35 17 18 17

Net profit (excluding cumulative effect of

accounting change) (415) (506) (324) 303 461
Net profit/Revenues -3.5% -4.7% -3.5% 3.5% 5.7%

Revenue passenger miles (millions) 82,406 72,693 62,086 58,987 55,904

Number of revenue passengers carried
(millions) 85 77 69 67 64
Average passenger trip length (miles) 969 944 900 880 874

Available passenger miles (millions) 132,282 123,102 104,328 96,463 90,742

Capacity utilization 62.3% 59.1% 59.5% 61.1% 61.6%
Source: Company Annual Reports and 10-Ks; ratios calculated by casewriter.
 Note:

Income Statement + Balance Sheet

Schedule - III of the CA,2013.
Exhibit 2 Delta Air Lines: Property and Equipment ($ millions)

June 30
1993 1992

Flight equipment owned 9,043 8,354

Less: Accumulated depreciation (3,559) (3,213)
5,484 5,141
Flight equipment under capital leases 173 173
Less: Accumulated depreciation (128) (112)
45 61
Ground property and equipment 2,373 2,211
Less: Accumulated depreciation (1,143) (983)
1,230 1,228
Advance payments for equipment 383 663
Total 7,142 7,093

Source: Company Annual Reports.

 Note
Method of Depreciation
Rate of Charges
Useful Life of the Assets
Residual Value
Book Values
Exhibit 3 Delta Air Lines: Aircraft Fleet as of June 30, 1993

Average
Seats per
Type of Aircraft Aircraft Owned Leased Total
A310-200 177 3 4 7
A310-300 178 - 15 15
B727-200 148 106 43 149
B737-200 107 1 57 58
B737-300 127 3 13 16
B757-200 182 43 41 84
B767-200 204 15 - 15
B767-300 254 2 23 25
B767-300ER 218 7 7 14
L1011-1 302 32 - 32
L1011-200 300 1 - 1
L-1011-250 266 6 - 6
L1011-500 223 17 - 17
MD-11 253 1 8 9
MD-88 142 59 57 116
MD-90 150 - - 0

Total 296 268 564

Source: Company Annual Reports.

Note: All of the aircraft shown above as “leased” were being operated under “operating”
leases.
Exhibit 5 Singapore Airlines: Key Financial and Operational Data ($ millions, Singapore dollars)

For the fiscal years ending March 31

1993 1992 1991 1990 1989

Total assets 9,417 9,366 8,516 7,708 6,365

Fixed assets 6,729 5,876 4,960 4,515 3,926
Fixed assets/Total assets 71.5% 62.7% 58.2% 58.6% 61.7%
Long-term debt (including capital leases) 0 421 450 518 624
Total debt/Total assets 0.0% 4.5% 5.3% 6.7% 9.8%
Total operating revenues 5,135 5,013 4,602 4,730 4,272
Total operating expenses 4,480 4,149 3,760 3,601 3,407
Depreciation expense for fixed assets 708 614 513 439 550
Depreciation expense/Total operating expense
15.8% 14.8% 13.6% 12.2% 16.1%
Operating profit 655 863 842 1,129 865
Operating profit/Revenues 12.8% 17.2% 18.3% 23.9% 20.2%
Gain on sale of flight equipment (pretax) 42 129 208 195 96
Net profit (excluding cumulative effect of
accounting change) 741 922 887 1,177 928
Net profit/Revenues 14.4% 18.4% 19.3% 24.9% 21.7%

Revenue passenger miles (millions) 23,663 21,808 19,582 19,210 17,991

Number of revenue passengers carried
(millions) 8.7 8.1 7.1 6.8 6.2
Average passenger trip length (miles) 2,720 2,692 2,758 2,825 2,902

Available passenger miles (millions) 33,174 29,659 26,063 24,523 22,789

Capacity utilization 71.3% 73.5% 75.1% 78.3% 78.9%

Note: March 31 exchange rate for conversion

of Singapore dollars to U.S. dollars
$1.64 $1.66 $1.80 $1.89 $1.96

Source: Company Annual Reports and 10-Ks; ratios calculated by casewriter.

Exhibit 6 Singapore Airlines: Fixed Assets ($ millions, Singapore dollars)

March 31
1993 1992

Flight equipment 9,224 7,814

Less: Accumulated depreciation (3,914) ###
5,310 4,484

Ground property and equipment 1,020 1,018

Less: Accumulated depreciation (549) (589)
471 429

Advance and progress payments 947 962

Total 6,728 5,875

Source: Company Annual Reports.

Exhibit 7 Singapore Airlines: Aircraft Fleet as of March 31, 1993

Type of aircraft In operation

B747-400 (MEGATOP) 18
B747-300 (BIG TOP) 11
B747-300 (COMBI) 3
B747-200 3
B747-200 Freighter 1
B737-200 Freighter 2
B737-300 Freighter 1
A310-300 12
A310-200 6
Total 57

Source: Company Annual Reports.

Note: Singapore owned all of its aircraft; it did not operate any under “operating leases.”
(Confirmed by company in June 6, 1997 phone conversation.)