8-K

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

FORM 8-K

CURRENT REPORT
Pursuant to Section 13 OR 15(d) of the

Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): July 3, 2018

DELTA AIR LINES, INC.

(Exact name of registrant as specified in its charter)

Delaware	001-05424	58-0218548
(State or other jurisdiction of incorporation)	(Commission File Number)	(IRS Employer Identification No.)

P.O. Box 20706, Atlanta, Georgia 30320-6001

(Address of principal executive offices)

Registrant’s telephone number, including area code: (404) 715-2600

Registrant’s Web site address: www.delta.com

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

☐ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

☐ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

☐ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

☐ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (17 CFR 230.405) or Rule 12b-2 of the Securities Exchange Act of 1934 (17 CFR 240.12b-2).

☐  Emerging growth company

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Item 7.01 Regulation FD Disclosure.

Delta Air Lines, Inc. (“Delta”) issued today an Investor Update, which is furnished as Exhibit 99.1 to this Form 8-K.

Delta also issued today a press release reporting June 2018 financial and operating results. The press release is attached as Exhibit 99.2 to this Form 8-K.

In accordance with general instruction B.2 of Form 8−K, the information in this report (including the exhibits) that is being furnished pursuant to Item 7.01 of Form 8−K shall not be deemed to be “filed” for the purposes of Section 18 of the Securities Exchange Act, as amended, or otherwise subject to liabilities of that section, nor shall they be deemed incorporated by reference in any filing under the Securities Act of 1933, as amended, except as expressly set forth in such filing. This report will not be deemed an admission as to the materiality of any information in the report that is required to be disclosed solely by Regulation FD.

Statements in this Form 8-K and the attached exhibits that are not historical facts, including statements regarding our estimates, expectations, beliefs, intentions, projections or strategies for the future, may be "forward-looking statements" as defined in the Private Securities Litigation Reform Act of 1995. All forward-looking statements involve a number of risks and uncertainties that could cause actual results to differ materially from the estimates, expectations, beliefs, intentions, projections and strategies reflected in or suggested by the forward-looking statements.  These risks and uncertainties include, but are not limited to, the cost of aircraft fuel; the impact of fuel hedging activity including rebalancing our hedge portfolio, recording mark-to-market adjustments or posting collateral in connection with our fuel hedge contracts; the availability of aircraft fuel; the performance of our significant investments in airlines in other parts of the world; the possible effects of accidents involving our aircraft; breaches or security lapses in our information technology systems; disruptions in our information technology infrastructure; our dependence on technology in our operations; the restrictions that financial covenants in our financing agreements could have on our financial and business operations; labor issues; the effects of weather, natural disasters and seasonality on our business; the effects of an extended disruption in services provided by third party regional carriers; failure or inability of insurance to cover a significant liability at Monroe’s Trainer refinery; the impact of environmental regulation on the Trainer refinery, including costs related to renewable fuel standard regulations; our ability to retain senior management and key employees; damage to our reputation and brand if we are exposed to significant adverse publicity through social media; the effects of terrorist attacks or geopolitical conflict; competitive conditions in the airline industry; interruptions or disruptions in service at major airports at which we operate; the effects of extensive government regulation on our business; the sensitivity of the airline industry to prolonged periods of stagnant or weak economic conditions; uncertainty in economic conditions and regulatory environment in the United Kingdom related to the likely exit of the United Kingdom from the European Union; and the effects of the rapid spread of contagious illnesses.

Additional information concerning risks and uncertainties that could cause differences between actual results and forward-looking statements is contained in our Securities and Exchange Commission filings, including our Annual Report on Form 10-K for the fiscal year ended December 31, 2017 and our Quarterly Report on Form 10-Q for the period ended March 31, 2018.  Caution should be taken not to place undue reliance on our forward-looking statements, which represent our views only as of July 3, 2018, and which we have no current intention to update.

Item 9.01 Financial Statements and Exhibits.

(d)  Exhibits.

Exhibit 99.1	Investor Update
Exhibit 99.2	Press Release dated July 3, 2018 titled “Delta Reports Financial and Operating Performance for June 2018”

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SIGNATURES

          Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

	DELTA AIR LINES, INC.
	By:   /s/ Paul A. Jacobson
Date:  July 3, 2018	Paul A. Jacobson Executive Vice President and Chief Financial Officer

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EXHIBIT INDEX

Exhibit Number	Description
Exhibit 99.1	Investor Update
Exhibit 99.2	Press Release dated July 3, 2018 titled “Delta Reports Financial and Operating Performance for June 2018”

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EX-99.1

Exhibit 99.1

1 Overall Commentary • Delta expects to deliver earnings per share for the June quarter of $1.65 - $1.75. • Total unit revenue growth for the June quarter is expected to be 4 - 5% over prior year as demand remains strong across all entities in both leisure and business segments, helping the company partially offset a ~50% increase in market fuel prices. • Non - fuel unit costs for the quarter are expected to be up ~3% year over year. Delta remains on track to deliver non - fuel unit cost growth of below 2% for the year. • Delta returned ~$810 million to shareholders through dividends and share repurchases in the quarter. July 3, 2018 Note: Information for the June quarter 2018 in this investor update is adjusted as described in the reconciliations below. Guidance June Quarter 2018 Earnings Diluted e arnings per share, adjusted $1.65 – $1.75 Pre - tax margin, adjusted 13 – 14% Revenue and Capacity TRASM, adjusted (year - over - year) Up 4 – 5% System capacity (year - over - year) Up ~3.5% Expense CASM - Ex (year - over - year) Up ~3% Average fuel price per gallon, adjusted $2.20 – $2.25 Profit sharing expense ~ $400 million Ancillary businesses expense ~ $300 million Third - party refinery sales ~ $260 million Non - operating expense, adjusted ~ $100 million Tax Rate ~23% Diluted Share Count ~ 697 million

2 Forward Looking Statements Profit Sharing Delta’s broad based employee profit sharing program pays 10% of the company’s adjusted annual profit up to $2.5 billion and 20% above that amount. Adjusted annual profit is calculated as the company’s annual pre - tax income before profit sharing expense, special items, and certain other items. Profit sharing expense is accrued at a blended rate based on the company’s estimated profitability for the full year. Ancillary Businesses and Third - Party Refinery Sales Delta excludes certain items from unit cost, unit revenue, and margin guidance to provide a more meaningful comparison of our airline operations to the rest of the airline industry. The costs associated with ancillary businesses such as the aircraft maintenance and staffing services we provide to third parties are excluded from CASM - Ex guidance because these businesses are not related to the generation of a seat mile. In addition, third - party refinery sales are excluded from adjusted unit revenue, adjusted margin, and CASM - Ex calculations because they are not indicative of the trends in our airline business. Third - party refinery sales are at or near cost and as such, the margin on these sales is de minimis. Statements in this investor update that are not historical facts, including statements regarding our estimates, expectations, beliefs, intentions, projections or strategies for the future, may be "forward - looking statements" as defined in the Private Securities Litigation Reform Act of 1995. All forward - looking statements involve a number of risks and uncertainties that could cause actual results to differ materially from the estimates, expectations, beliefs, intentions, projections and strategies reflected in or suggested by the forward - looking statements. These risks and uncertainties include, but are not limited to, the cost of aircraft fuel; the impact of fuel hedging activity including rebalancing our hedge portfolio, recording mark - to - market adjustments or posting collateral in connection with our fuel hedge contracts; the availability of aircraft fuel; the perform anc e of our significant investments in airlines in other parts of the world; the possible effects of accidents involving our aircraft ; breaches or security lapses in our information technology systems; disruptions in our information technology infrastructure; our dependence on technology in our operations; the restrictions that financial covenants in our financing agreements could have on our financial and business operations; labor issues; the effects of weather, natural disasters and seasonality on our business; the effects of an extended disruption in services provided by third party regional carriers; failure or inability o f insurance to cover a significant liability at Monroe’s Trainer refinery; the impact of environmental regulation on the Traine r refinery, including costs related to renewable fuel standard regulations; our ability to retain senior management and key employees; damage to our reputation and brand if we are exposed to significant adverse publicity through social media; the effects of terrorist attacks or geopolitical conflict; competitive conditions in the airline industry; interruptions or disru pti ons in service at major airports at which we operate; the effects of extensive government regulation on our business; the sensitivit y o f the airline industry to prolonged periods of stagnant or weak economic conditions; uncertainty in economic conditions and regulatory environment in the United Kingdom related to the likely exit of the United Kingdom from the European Union; and the effects of the rapid spread of contagious illnesses. Additional information concerning risks and uncertainties that could cause differences between actual results and forward - looking statements is contained in our Securities and Exchange Commission filings, including our Annual Report on Form 10 - K for the fiscal year ended December 31, 2017 and our 10 - Q for the quarterly period ended March 31, 2018. Caution should be taken not to place undue reliance on our forward - looking statements, which represent our views only as of July 3, 2018, and which we have no current intention to update. Non - GAAP Financial Measures Delta sometimes uses information ("non - GAAP financial measures") that is derived from the Consolidated Financial Statements, but that is not presented in accordance with accounting principles generally accepted in the U.S. (“GAAP”). Under the U.S. Securities and Exchange Commission rules, non - GAAP financial measures may be considered in addition to results prepared in accordance with GAAP, but should not be considered a substitute for or superior to GAAP results. The tables below show reconciliations of non - GAAP financial measures used in this update to the most directly comparable GAAP financial measures. Non - GAAP Reconciliations

3 Diluted Earnings per Share, adjusted. We adjust diluted earnings per share for mark - to - market ("MTM") adjustments and settlements on fuel hedge contracts, the MTM adjustments recorded by our equity method investees, Virgin Atlantic and Aeroméxico , and unrealized gains/losses on our investments in GOL, China Eastern and Air France - KLM, to determine diluted earnings per share, adjusted. MTM adjustments are defined as fair value changes recorded in periods other than the settlement period. Such fair value chang es are not necessarily indicative of the actual settlement value of the underlying hedge in the contract settlement period. Settlements rep resent cash received or paid on hedge contracts settled during the period. We also record our proportionate share of earnings/loss from our equity investments in Virgin Atlantic and Aeroméxico and the unrealized gain/loss on our investments in GOL, China Eastern and Air France - KLM in non - operating expense. Adjusting for these items allows investors to better understand and analyze our core operational performance in the period shown. Pre - tax Margin, adjusted. We adjust for MTM adjustments and settlements, investment MTM adjustments and unrealized gain/loss on investments to determine pre - tax margin, adjusted, for the same reasons described above under the heading Diluted Earnings per S hare, adjusted. We then adjust for Third - party refinery sales to determine pre - tax margin, adjusted. Adjusting for these items allows investors to understand and analyze our core operational performance in the period shown. Third - party refinery sales . Delta's refinery segment provides jet fuel to the airline segment from its own production and from jet fuel obtained through agreements with third parties. Activities of the refinery segment are primarily for the benefit of the airli ne. However, from time to time, the refinery sells fuel by - products to third parties. The related cost of sales are recorded gross within other re venue and other ancillary businesses and refinery expense, respectively. Total Revenue Per Available Seat Mile "TRASM", adjusted. We adjust TRASM for refinery sales to third parties to determine TRASM, adjusted because these revenues are not related to our airline segment. TRASM, adjusted therefore provides a more meaningful com parison of revenue from our airline operations to the rest of the airline industry. (Projected) Three Months Ended June 30, 2018 10.7% - 11.7% ~ 0.2% Investment MTM adjustments ~ (0.2)% Unrealized loss on investments ~ 2.0% Third-party refinery sales ~ 0.3% 13% - 14%Pre-tax margin, adjusted Pre-tax margin Adjusted for: MTM adjustments and settlements (Projected) Three Months Ended June 30, 2018 Diluted earnings per share $1.36 - $1.46 Adjusted for: MTM adjustments and settlements ~ 0.03 Investment MTM adjustments ~ (0.03) Unrealized loss on investments ~ 0.29 Diluted earnings per share, adjusted $1.65 - $1.75 (Projected) Three Months Ended Three Months Ended June 30, 2018 June 30, 2017 TRASM (cents) 17.20 - 17.30 16.23 Third-party refinery sales ~ (0.38) (0.10) TRASM, adjusted 16.82 - 16.92 16.13 Year-over-year change Up 4 - 5%

4 Non - Fuel Unit Cost or Cost per Available Seat Mile, ("CASM - Ex"). We adjust CASM for the following items to determine CASM - Ex for the reasons described below: Aircraft fuel and related taxes . The volatility in fuel prices impacts the comparability of year - over - year financial performance. The adjustment for aircraft fuel and related taxes allows investors to understand and analyze our non - fuel costs and year - over - year financial performance. Ancillary businesses and refinery . These expenses include aircraft maintenance and staffing services we provide to third parties, our vacation wholesale operations and refinery cost of sales to third parties. Because these businesses are not related to the ge ner ation of a seat mile, we adjust for the costs related to these sales to provide a more meaningful comparison of the costs of our airline op erations to the rest of the airline industry. Profit sharing . We adjust for profit sharing because this adjustment allows investors to better understand and analyze our recurring cost performance and provides a more meaningful comparison of our core operating costs to the airline industry. Average Fuel Price Per Gallon, adjusted. We adjust for MTM adjustments and settlements to determine average fuel price per gallon, adjusted for the same reason described above under the heading Diluted Earnings per Share, adjusted. Non - operating Expense, adjusted. We adjust for investment MTM adjustments and unrealized gain/loss on investments to determine non - operating expense, adjusted for the same reason described above in the heading Diluted Earnings per Share, adjusted. $ 2.22 - 2.27 ~ (0.02) $ 2.20 - 2.25 (Projected) Three Months Ended June 30, 2018 Average fuel price per gallon MTM adjustments and settlements Total fuel price per gallon, adjusted (Projected) Three Months Ended (in millions) June 30, 2018 Non-operating expense ~ $310 Adjusted for: Investment MTM adjustments ~ 25 Unrealized loss on investments ~ (235) Non-operating expense, adjusted ~ $100 (Projected) Three Months Ended Three Months Ended June 30, 2018 June 30, 2017 14.81 - 14.91 13.23 ~ (3.47) (2.55) ~ (0.80) (0.44) Profit sharing ~ (0.57) (0.51) 9.97 - 10.07 9.73 Year-over-year change Up ~3% Ancillary businesses and refinery CASM-Ex CASM (cents) Adjusted for: Aircraft fuel and related taxes

EX-99.2

Exhibit 99.2

 

CONTACT:	Corporate Communications
	404-715-2554
	news archive at news.delta.com
	Investor Relations
	404-715-2170

Delta Reports Operating Performance for June 2018

ATLANTA, July 3, 2018 – Delta Air Lines (NYSE: DAL) today reported operating performance for June 2018. The company carried 17.7 million customers across its broad global network, a record for the month of June.

In an Investor Update also issued this morning, Delta reaffirmed guidance of $1.65 to $1.75 earnings per share¹ and 13-14% pre-tax margin¹ for the June quarter.

Monthly highlights include:

· Setting records for the month of June, including four new top ten system revenue days and six record days for customers carried in June for all Delta and Delta Connection flights worldwide.

· Observing National Safety Month with continued priority and focus on the safety and security of Delta people and our customers each and every day throughout the world.

· Announcing nonstop service in conjunction with joint venture partner Korean Air from Minneapolis/St. Paul to Seoul-Incheon, Korea and from Seattle to Osaka-Kansai, Japan, starting in 2019, complementing our existing international network.

· Holding the annual shareholders meeting where all ballot measures were approved with overwhelming majority including the re-election of all 12 members of the Board of Directors.

The company’s operating performance is detailed in the table below.

Delta Air Lines serves more than 180 million customers each year. In 2018, Delta was named to Fortune’s top 50 Most Admired Companies in addition to being named the most admired airline for the seventh time in eight years. Additionally, Delta has ranked No.1 in the Business Travel News Annual Airline survey for an unprecedented seven consecutive years. With an industry-leading global network, Delta and the Delta Connection carriers offer service to 324 destinations in 57 countries on six continents. Headquartered in Atlanta, Delta employs more than 80,000 employees worldwide and operates a mainline fleet of more than 800 aircraft. The airline is a founding member of the SkyTeam global alliance and participates in the industry’s leading transatlantic joint venture with Air France-KLM and Alitalia as well as a joint venture with Virgin Atlantic. Including its worldwide alliance partners, Delta offers customers more than 15,000 daily flights, with key hubs and markets including Amsterdam, Atlanta, Boston, Detroit, Los Angeles, Mexico City, Minneapolis/St. Paul, New York-JFK and LaGuardia, London-Heathrow, Paris-Charles de Gaulle, Salt Lake City, São Paulo, Seattle, Seoul, and Tokyo-Narita. Delta has invested billions of dollars in airport facilities, global products and services, and technology to enhance the customer experience in the air and on the ground. Additional information is available on the Delta News Hub, as well as delta.com, Twitter @DeltaNewsHub and Facebook.com/delta.

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	Monthly Traffic Results							Year to Date Traffic Results
	Jun 2018		Jun 2017		Change			Jun 2018		Jun 2017		Change
RPMs (000):
Domestic		13,078,390		12,447,553		5.1%			68,280,712		65,353,243		4.5%
International		8,369,341		8,381,713		(0.1%	)		40,399,571		40,173,604		0.6%
Latin America		1,692,131		1,738,317		(2.7%	)		10,884,205		11,213,599		(2.9%	)
Atlantic		4,869,277		4,770,053		2.1%			19,629,399		18,947,412		3.6%
Pacific		1,807,933		1,873,343		(3.5%	)		9,885,966		10,012,593		(1.3%	)
Total System		21,447,731		20,829,266		3.0%			108,680,283		105,526,847		3.0%
ASMs (000):
Domestic		14,869,355		14,114,307		5.3%			80,464,184		76,612,341		5.0%
International		9,361,074		9,411,293		(0.5%	)		47,505,840		47,485,681		0.0%
Latin America		1,937,232		1,945,523		(0.4%	)		12,676,664		12,950,795		(2.1%	)
Atlantic		5,430,811		5,370,083		1.1%			23,434,491		22,835,588		2.6%
Pacific		1,993,030		2,095,687		(4.9%	)		11,394,685		11,699,298		(2.6%	)
Total System		24,230,429		23,525,600		3.0%			127,970,024		124,098,022		3.1%
Load Factor:
Domestic		88.0%		88.2%		(0.2) Pts			84.9%		85.3%		(0.4) Pts
International		89.4%		89.1%		0.3 Pts			85.0%		84.6%		0.4 Pts
Latin America		87.3%		89.3%		(2.0) Pts			85.9%		86.6%		(0.7) Pts
Atlantic		89.7%		88.8%		0.9 Pts			83.8%		83.0%		0.8 Pts
Pacific		90.7%		89.4%		1.3 Pts			86.8%		85.6%		1.2 Pts
Total System		88.5%		88.5%		0.0 Pts			84.9%		85.0%		(0.1) Pts
Mainline Completion Factor		99.9%		99.9%		0.0 Pts
Mainline On-time Performance		81.5%		82.8%		(1.3) Pts
(preliminary DOT A14)
Passengers Boarded		17,692,072		17,191,217		2.9%			93,323,752		91,061,790		2.5%
Cargo Ton Miles (000):		195,080		195,706		(0.3%	)		1,069,580		1,025,635		4.3%

Note: Results are preliminary and include flights operated under contract carrier arrangements

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Forward-Looking Statements

Statements in this investor update that are not historical facts, including statements regarding our estimates, expectations, beliefs, intentions, projections or strategies for the future, may be "forward-looking statements" as defined in the Private Securities Litigation Reform Act of 1995. All forward-looking statements involve a number of risks and uncertainties that could cause actual results to differ materially from the estimates, expectations, beliefs, intentions, projections and strategies reflected in or suggested by the forward-looking statements. These risks and uncertainties include, but are not limited to, the cost of aircraft fuel; the impact of fuel hedging activity including rebalancing our hedge portfolio, recording mark-to-market adjustments or posting collateral in connection with our fuel hedge contracts; the availability of aircraft fuel; the performance of our significant investments in airlines in other parts of the world; the possible effects of accidents involving our aircraft; breaches or security lapses in our information technology systems; disruptions in our information technology infrastructure; our dependence on technology in our operations; the restrictions that financial covenants in our financing agreements could have on our financial and business operations; labor issues; the effects of weather, natural disasters and seasonality on our business; the effects of an extended disruption in services provided by third party regional carriers; failure or inability of insurance to cover a significant liability at Monroe’s Trainer refinery; the impact of environmental regulation on the Trainer refinery, including costs related to renewable fuel standard regulations; our ability to retain senior management and key employees; damage to our reputation and brand if we are exposed to significant adverse publicity through social media; the effects of terrorist attacks or geopolitical conflict; competitive conditions in the airline industry; interruptions or disruptions in service at major airports at which we operate; the effects of extensive government regulation on our business; the sensitivity of the airline industry to prolonged periods of stagnant or weak economic conditions; uncertainty in economic conditions and regulatory environment in the United Kingdom related to the likely exit of the United Kingdom from the European Union; and the effects of the rapid spread of contagious illnesses.

Additional information concerning risks and uncertainties that could cause differences between actual results and forward-looking statements is contained in our Securities and Exchange Commission filings, including our Annual Report on Form 10-K for the fiscal year ended December 31, 2017 and our 10-Q for the quarterly period ended March 31, 2018. Caution should be taken not to place undue reliance on our forward-looking statements, which represent our views only as of July 3, 2018, and which we have no current intention to update.

¹ Non-GAAP Reconciliations

Delta sometimes uses information ("non-GAAP financial measures") that is derived from the Consolidated Financial Statements, but that is not presented in accordance with accounting principles generally accepted in the U.S. (“GAAP”). Under the U.S. Securities and Exchange Commission rules, non-GAAP financial measures may be considered in addition to results prepared in accordance with GAAP, but should not be considered a substitute for or superior to GAAP results. The tables below show reconciliations of non-GAAP financial measures used in this update to the most directly comparable GAAP financial measures.

Diluted Earnings per Share, adjusted. We adjust diluted earnings per share for mark-to-market ("MTM") adjustments and settlements on fuel hedge contracts, the MTM adjustments recorded by our equity method investees, Virgin Atlantic and Aeroméxico, and unrealized gains/losses on our investments in GOL, China Eastern and Air France-KLM, to determine diluted earnings per share, adjusted.

MTM adjustments are defined as fair value changes recorded in periods other than the settlement period. Such fair value changes are not necessarily indicative of the actual settlement value of the underlying hedge in the contract settlement period. Settlements represent cash received or paid on hedge contracts settled during the period.

We also record our proportionate share of earnings/loss from our equity investments in Virgin Atlantic and Aeroméxico and the unrealized gain/loss on our investments in GOL, China Eastern and Air France-KLM in non-operating expense. Adjusting for these items allows investors to better understand and analyze our core operational performance in the period shown.

	(Projected)
	Three Months Ended
	June 30, 2018
Diluted earnings per share	$1.36 - $1.46
Adjusted for:
MTM adjustments and settlements	~0.03
Investment MTM adjustments	~(0.03)
Unrealized loss on investments	~0.29
Diluted earnings per share, adjusted	$1.65 - $1.75

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Pre-tax Margin, adjusted. We adjust for MTM adjustments and settlements, investment MTM adjustments and unrealized gain/loss on investments to determine pre-tax margin, adjusted, for the same reasons described above under the heading Diluted Earnings per Share, adjusted. We then adjust for Third-party refinery sales to determine pre-tax margin, adjusted. Adjusting for these items allows investors to understand and analyze our core operational performance in the period shown.

Third-party refinery sales. Delta's refinery segment provides jet fuel to the airline segment from its own production and from jet fuel obtained through agreements with third parties. Activities of the refinery segment are primarily for the benefit of the airline. However, from time to time, the refinery sells fuel by-products to third parties. The related cost of sales are recorded gross within other revenue and other ancillary businesses and refinery expense, respectively.

	(Projected)
	Three Months Ended
	June 30, 2018
Pre-tax margin	10.7% - 11.7%
Adjusted for:
MTM adjustments and settlements	~0.2%
Investment MTM adjustments	~(0.2)%
Unrealized loss on investments	~2.0%
Third-party refinery sales	~0.3%
Pre-tax margin, adjusted	13% - 14%

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