EX-99.2 4 g83033exv99w2.txt EX-99.2 RECONCIL. FOR YEAR ENDED DECEMBER 31, 2002 EXHIBIT 99.2 RECONCILIATION OF GAAP FINANCIAL MEASURES TO NON-GAAP FINANCIAL MEASURES FOR THE YEAR ENDED DECEMBER 31, 2002 The Operating Expenses section on page 16, and the Operating Income (Loss) and Operating Margin section on page 17, of Management's Discussion and Analysis included in our 2002 Annual Report to Shareowners (which is incorporated by reference into our 2002 Form 10-K) discuss the following non-GAAP financial measures for the year ended December 31, 2002:
OPERATING OPERATING EXPENSES CASM LOSS OPERATING ($M) (cents) ($M) MARGIN ---------- ---------- ---------- ---------- GAAP $ 14,614 10.31 $ (1,309) -9.8% Items excluded: Asset write downs, restructuring and related items: Severance costs (127) (0.09) 127 1.0% Asset writedowns (257) (0.18) 257 1.9% Surplus pilots / grounded aircraft (93) (0.07) 93 0.7% Aircraft deferral costs (30) (0.02) 30 0.2% 2002 closure of leased facilities (14) (0.01) 14 0.1% Restructuring and other reserve reversals 82 0.06 (82) -0.6% Stabilization Act compensation 34 0.03 (34) -0.3% ---------- ---------- ---------- ---------- Non-GAAP $ 14,209 10.03 $ (904) $ -6.8% ========== ========== ========== ==========
FUEL PRICE NEUTRALIZED CASM(1): (in millions, except where noted) --------------------------------- Operating expenses $ 14,614 Less fuel expense (1,683) Plus Delta's fuel gallons consumed in 2002 multiplied by Delta's average fuel price per gallon in 2001(2) 1,724 ---------- Fuel price neutralized operating expenses $ 14,655 Available seat miles 141,719 Fuel price neutralized CASM (cents) 10.34 ========== vs. 2001 CASM (cents) 10.47 ========== Change -1.2% ========== FUEL PRICE NEUTRALIZED CASM - EXCLUDING: (in cents, except where noted) ---------------------------------------- Fuel price neutralized CASM 10.34 Items excluded: Severance costs (0.09) Asset writedowns (0.18) Surplus pilots / grounded aircraft (0.07) Aircraft deferral costs (0.02) 2002 closure of leased facilities (0.01) Restructuring and other reserve reversals 0.06 Stabilization Act compensation 0.03 ---------- Fuel price neutralized CASM - excluding 10.06 ========== vs. 2001 CASM - excluding 10.14 ========== Change -0.8% ==========
(1) Operating cost per available seat mile (CASM), adjusting average fuel price per gallon for 2002 to equal the average fuel price per gallon for 2001. (2) 2.514 billion gallons x 68.60 cents/gallon