Long-Term Debt Maturities

Entity Registrant Name DELTA AIR LINES INC /DE/
CIK 0000027904
Accession number 0000027904-14-000003
Link to XBRL instance http://www.sec.gov/Archives/edgar/data/27904/000002790414000003/dal-20131231.xml
Fiscal year end --12-31
Fiscal year focus 2013
Fiscal period focus FY
Current balance sheet date 2013-12-31
Current year-to-date income statement start date 2013-01-01
Commentary Did not investigate.
Level 1 (Note level) Text Block concept us-gaap:DebtDisclosureTextBlock
LONG-TERM DEBT

The following table summarizes our long-term debt:
 
Maturity
Interest Rate(s) Per Annum at
December 31,
(in millions)
Dates
December 31, 2013
2013
2012
Pacific Facilities:
 
 
 
 
 
 
 
 
Pacific Term Loan B-1(2)
October 2018
4.00%
variable(1)
$
1,089

$
1,100

Pacific Term Loan B-2(2)
April 2016
3.25%
variable(1)
396

400

Pacific Revolving Facility ($450)
October 2017
undrawn
variable(1)
—

—

2011 Credit Facilities:
 
 
 

 

 
 
Term Loan Facility(2)
April 2017
3.50%
variable(1)
1,341

1,354

Revolving Credit Facility ($1,225)
April 2016
undrawn
variable(1)
—

—

Other Secured Financing Arrangements:
 
 

 
 
 
 
 
Certificates(2)(3)
2014
to
2023
4.75%
to
9.75%
3,834

4,314

Aircraft financings(2)(3)
2014
to
2025
0.64%
to
6.76%
3,787

3,964

Other financings(2)(4)
2014
to
2031
0.00%
to
6.12%
627

707

Other Revolving Credit Facilities ($250)
2014
to
2015
undrawn
variable(1)
—

—

Total secured debt
 
 
 
 
 
 
11,074

11,839

American Express - Advance Purchase of Restricted SkyMiles(5)
 
 
 
—

619

Other unsecured debt(2)
2014
to
2035
3.01%
to
9.00%
154

175

Total unsecured debt
 
 
 
 
 
 
154

794

Total secured and unsecured debt
 
 
 
 
 
 
11,228

12,633

Unamortized discount, net
 
 
 
 
 
 
(383
)
(527
)
Total debt
 
 
 
 
 
 
10,845

12,106

Less: current maturities
 
 
 
 
 
 
(1,449
)
(1,507
)
Total long-term debt
 
 
 
 
 
 
$
9,396

$
10,599

 
(1) 
Interest rate equal to LIBOR (generally subject to a floor) or another index rate, in each case plus a specified margin.
(2) 
Due in installments.
(3) 
Secured by aircraft.
(4) 
Primarily includes loans secured by spare parts, spare engines and real estate.
(5) 
For additional information about our debt associated with American Express, see Note 7.

Pacific Facilities

In October 2012, we entered into senior secured credit facilities (the "Pacific Facilities") to borrow up to $2.0 billion. The Pacific Facilities consist of two first lien term loan facilities (the "Pacific Term Loans") and a $450 million revolving credit facility (the "Pacific Revolving Facility"). Borrowings under the Pacific Term Loans must be repaid annually in an amount equal to 1% per year of the original principal amount of the respective loans (to be paid in equal quarterly installments). The remaining unamortized principal amounts under the Pacific Term Loans are due on their final maturity dates.

Our obligations under the Pacific Facilities are guaranteed by substantially all of our domestic subsidiaries (the "Guarantors") and secured by a first lien on our Pacific route authorities and certain related assets. For a discussion of related financial covenants, see "Key Financial Covenants" below.

2011 Credit Facilities

In 2011, we entered into senior secured first-lien credit facilities (the “2011 Credit Facilities”) to borrow up to $2.6 billion. The 2011 Credit Facilities consist of a $1.4 billion first-lien term loan facility (the “Term Loan Facility”) and a $1.2 billion first-lien revolving credit facility, up to $500 million of which may be used for the issuance of letters of credit (the “Revolving Credit Facility”).

Borrowings under the Term Loan Facility must be repaid annually in an amount equal to 1% of the original principal amount (to be paid in equal quarterly installments), with the balance due in 2017. Borrowings under the Revolving Credit Facility are due in 2016.

Our obligations under the 2011 Credit Facilities are guaranteed by the Guarantors. The 2011 Credit Facilities and the related guarantees are secured by liens on certain of our and the Guarantors' assets, including accounts receivable, flight equipment, ground property and equipment, certain aircraft, spare engines and parts, certain non-Pacific international routes, domestic slots, real estate and certain investments (the “Collateral”). For a discussion of related financial covenants, see "Key Financial Covenants" below.

Key Financial Covenants

The credit facilities discussed above include affirmative, negative and financial covenants that restrict our ability to, among other things, make investments, sell or otherwise dispose of collateral if we are not in compliance with the collateral coverage ratio tests described below, pay dividends or repurchase stock. We were in compliance with all covenants in our financing agreements at December 31, 2013.
 
Pacific Facilities
2011 Credit Facilities
Minimum Fixed Charge Coverage Ratio (1)
1.20:1
1.20:1
Minimum Unrestricted Liquidity
 
 
Unrestricted cash and permitted investments
n/a
$1.0 billion
Unrestricted cash, permitted investments and undrawn revolving credit facilities
$2.0 billion
$2.0 billion
Minimum Collateral Coverage Ratio (2)
1.60:1
1.67:1 (3)


(1) 
Defined as the ratio of (a) earnings before interest, taxes, depreciation, amortization and aircraft rent and other adjustments to net income to (b) the sum of gross cash interest expense (including the interest portion of our capitalized lease obligations) and cash aircraft rent expense, for the 12-month period ending as of the last day of each fiscal quarter.
(2) 
Defined as the ratio of (a) certain of the collateral that meets specified eligibility standards to (b) the sum of the aggregate outstanding obligations and certain other obligations.
(3) 
Excluding the non-Pacific international routes from the collateral for purposes of the calculation, the required minimum collateral coverage ratio is 0.75:1

Availability Under Revolving Credit Facilities

The table below shows availability under revolving credit facilities, all of which were undrawn, as of December 31, 2013:
(in millions)
 
Revolving Credit Facility
$
1,225

Pacific Revolving Credit Facility
450

Other Revolving Credit Facilities
250

Total availability under revolving credit facilities
$
1,925



Future Maturities

The following table summarizes scheduled maturities of our debt, including current maturities, at December 31, 2013:
Years Ending December 31,
(in millions)
Total Secured and Unsecured Debt
Amortization of Debt Discount, net
 
2014
$
1,491

$
(80
)
 
2015
1,089

(73
)
 
2016
1,472

(67
)
 
2017
2,190

(58
)
 
2018
2,159

(47
)
 
Thereafter
2,827

(58
)
 
Total
$
11,228

$
(383
)
$
10,845



Fair Value of Debt

Market risk associated with our fixed and variable rate long-term debt relates to the potential reduction in fair value and negative impact to future earnings, respectively, from an increase in interest rates. In the table below, the aggregate fair value of debt was based primarily on reported market values, recently completed market transactions and estimates based on interest rates, maturities, credit risk and underlying collateral and is classified primarily as Level 2 within the fair value hierarchy.
 
December 31,
(in millions)
2013
2012
Total debt at par value
$
11,228

$
12,633

Unamortized discount, net
(383
)
(527
)
Net carrying amount
$
10,845

$
12,106

Fair value
$
11,600

$
13,000
Level 4 (Note level) Text Block concept - Maturities of Long Term Debt us-gaap:ScheduleOfMaturitiesOfLongTermDebtTableTextBlock
The following table summarizes scheduled maturities of our debt, including current maturities, at December 31, 2013:
Years Ending December 31,
(in millions)
Total Secured and Unsecured Debt
Amortization of Debt Discount, net
 
2014
$
1,491

$
(80
)
 
2015
1,089

(73
)
 
2016
1,472

(67
)
 
2017
2,190

(58
)
 
2018
2,159

(47
)
 
Thereafter
2,827

(58
)
 
Total
$
11,228

$
(383
)
$
10,845
Level 4 (Note level) Text Block concept - Debt Instruments us-gaap:ScheduleOfDebtInstrumentsTextBlock
The following table summarizes our long-term debt:
 
Maturity
Interest Rate(s) Per Annum at
December 31,
(in millions)
Dates
December 31, 2013
2013
2012
Pacific Facilities:
 
 
 
 
 
 
 
 
Pacific Term Loan B-1(2)
October 2018
4.00%
variable(1)
$
1,089

$
1,100

Pacific Term Loan B-2(2)
April 2016
3.25%
variable(1)
396

400

Pacific Revolving Facility ($450)
October 2017
undrawn
variable(1)
—

—

2011 Credit Facilities:
 
 
 

 

 
 
Term Loan Facility(2)
April 2017
3.50%
variable(1)
1,341

1,354

Revolving Credit Facility ($1,225)
April 2016
undrawn
variable(1)
—

—

Other Secured Financing Arrangements:
 
 

 
 
 
 
 
Certificates(2)(3)
2014
to
2023
4.75%
to
9.75%
3,834

4,314

Aircraft financings(2)(3)
2014
to
2025
0.64%
to
6.76%
3,787

3,964

Other financings(2)(4)
2014
to
2031
0.00%
to
6.12%
627

707

Other Revolving Credit Facilities ($250)
2014
to
2015
undrawn
variable(1)
—

—

Total secured debt
 
 
 
 
 
 
11,074

11,839

American Express - Advance Purchase of Restricted SkyMiles(5)
 
 
 
—

619

Other unsecured debt(2)
2014
to
2035
3.01%
to
9.00%
154

175

Total unsecured debt
 
 
 
 
 
 
154

794

Total secured and unsecured debt
 
 
 
 
 
 
11,228

12,633

Unamortized discount, net
 
 
 
 
 
 
(383
)
(527
)
Total debt
 
 
 
 
 
 
10,845

12,106

Less: current maturities
 
 
 
 
 
 
(1,449
)
(1,507
)
Total long-term debt
 
 
 
 
 
 
$
9,396

$
10,599

 
(1) 
Interest rate equal to LIBOR (generally subject to a floor) or another index rate, in each case plus a specified margin.
(2) 
Due in installments.
(3) 
Secured by aircraft.
(4) 
Primarily includes loans secured by spare parts, spare engines and real estate.
(5) 
For additional information about our debt associated with American Express, see Note 7.
 
Pacific Facilities
2011 Credit Facilities
Minimum Fixed Charge Coverage Ratio (1)
1.20:1
1.20:1
Minimum Unrestricted Liquidity
 
 
Unrestricted cash and permitted investments
n/a
$1.0 billion
Unrestricted cash, permitted investments and undrawn revolving credit facilities
$2.0 billion
$2.0 billion
Minimum Collateral Coverage Ratio (2)
1.60:1
1.67:1 (3)


(1) 
Defined as the ratio of (a) earnings before interest, taxes, depreciation, amortization and aircraft rent and other adjustments to net income to (b) the sum of gross cash interest expense (including the interest portion of our capitalized lease obligations) and cash aircraft rent expense, for the 12-month period ending as of the last day of each fiscal quarter.
(2) 
Defined as the ratio of (a) certain of the collateral that meets specified eligibility standards to (b) the sum of the aggregate outstanding obligations and certain other obligations.
(3) 
Excluding the non-Pacific international routes from the collateral for purposes of the calculation, the required minimum collateral coverage ratio is 0.75:1
 
December 31,
(in millions)
2013
2012
Total debt at par value
$
11,228

$
12,633

Unamortized discount, net
(383
)
(527
)
Net carrying amount
$
10,845

$
12,106

Fair value
$
11,600

$
13,000

Level 4 Details Key Concepts: Long-term Debt Maturities

Description Fact value US GAAP XBRL Concept
Year 1 (Current portion) 1,491,000,000 us-gaap:LongTermDebtMaturitiesRepaymentsOfPrincipalInNextTwelveMonths
Year 2 1,089,000,000 us-gaap:LongTermDebtMaturitiesRepaymentsOfPrincipalInYearTwo
Year 3 1,472,000,000 us-gaap:LongTermDebtMaturitiesRepaymentsOfPrincipalInYearThree
Year 4 2,190,000,000 us-gaap:LongTermDebtMaturitiesRepaymentsOfPrincipalInYearFour
Year 5 2,159,000,000 us-gaap:LongTermDebtMaturitiesRepaymentsOfPrincipalInYearFive
Thereafter 2,827,000,000 us-gaap:LongTermDebtMaturitiesRepaymentsOfPrincipalAfterYearFive
Total Long-term Debt 10,845,000,000 us-gaap:LongTermDebt
CHECK -383,000,000

*

(Classified balance sheet) Deferred tax assets (liabilities), net components current/noncurrent asset/liability

Description Fact value US GAAP XBRL Concept
Current portion 1,547,000,000 us-gaap:LongTermDebtAndCapitalLeaseObligationsCurrent
Noncurrent portion 9,795,000,000 us-gaap:LongTermDebtAndCapitalLeaseObligations
Total Long-Term Debt 10,845,000,000 us-gaap:LongTermDebt
CHECK -497,000,000

*

*

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