Goodwill and Intangible Asset Disclosure
Adjustments to Financial Statements: Removal of Goodwill
Adjusted Financial Ratios: Removal of Goodwill (Summary)
Adjusted Total Asset Turnover
Adjusted Financial Leverage
Adjusted Return on Equity (ROE)
Adjusted Return on Assets (ROA)

Delta Air Lines Inc., balance sheet: goodwill and intangible assets

US$ in millions

	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019	Dec 31, 2018	Dec 31, 2017
Goodwill	9,753)	9,753)	9,781)	9,781)	9,794)
International routes and slots	2,583)	2,583)	2,583)	2,583)	2,583)
Airline alliances	1,863)	1,863)	1,005)	661)	661)
Delta tradename	850)	850)	850)	850)	850)
Domestic slots	622)	622)	622)	622)	622)
Indefinite-lived intangible assets	5,918)	5,918)	5,060)	4,716)	4,716)
Marketing agreements	730)	730)	730)	730)	730)
Maintenance contracts	193)	193)	193)	193)	193)
Other	53)	53)	53)	53)	53)
Definite-lived intangible assets, gross carrying value	976)	976)	976)	976)	976)
Accumulated amortization	(893)	(883)	(873)	(862)	(845)
Definite-lived intangible assets, net of accumulated amortization	83)	93)	103)	114)	131)
Intangible assets, net of accumulated amortization	6,001)	6,011)	5,163)	4,830)	4,847)
Goodwill and intangible assets	15,754)	15,764)	14,944)	14,611)	14,641)

Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31).

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Item	Description	The company
Goodwill	Amount after accumulated impairment loss of an asset representing future economic benefits arising from other assets acquired in a business combination that are not individually identified and separately recognized.
Intangible assets, net of accumulated amortization	Sum of the carrying amounts of all intangible assets, excluding goodwill, as of the balance sheet date, net of accumulated amortization and impairment charges.	Delta Air Lines Inc. intangible assets, net of accumulated amortization increased from 2019 to 2020 but then slightly decreased from 2020 to 2021.
Goodwill and intangible assets	Sum of the carrying amounts of all intangible assets, including goodwill, as of the balance sheet date, net of accumulated amortization and impairment charges.	Delta Air Lines Inc. goodwill and intangible assets increased from 2019 to 2020 but then slightly decreased from 2020 to 2021.

Delta Air Lines Inc., adjustments to financial statements

US$ in millions

	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019	Dec 31, 2018	Dec 31, 2017
Adjustment to Total Assets
Total assets (as reported)	72,459)	71,996)	64,532)	60,266)	53,292)
Less: Goodwill	9,753)	9,753)	9,781)	9,781)	9,794)
Total assets (adjusted)	62,706)	62,243)	54,751)	50,485)	43,498)
Adjustment to Stockholders’ Equity
Stockholders’ equity (as reported)	3,887)	1,534)	15,358)	13,687)	13,910)
Less: Goodwill	9,753)	9,753)	9,781)	9,781)	9,794)
Stockholders’ equity (adjusted)	(5,866)	(8,219)	5,577)	3,906)	4,116)

Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31).

Delta Air Lines Inc., Financial Data: Reported vs. Adjusted

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Delta Air Lines Inc., adjusted financial ratios

	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019	Dec 31, 2018	Dec 31, 2017
Total Asset Turnover
Reported total asset turnover	0.41	0.24	0.73	0.74	0.77
Adjusted total asset turnover	0.48	0.27	0.86	0.88	0.95
Financial Leverage
Reported financial leverage	18.64	46.93	4.20	4.40	3.83
Adjusted financial leverage	—	—	9.82	12.92	10.57
Return on Equity (ROE)
Reported ROE	7.20%	-807.37%	31.04%	28.75%	25.72%
Adjusted ROE	—	—	85.48%	100.74%	86.90%
Return on Assets (ROA)
Reported ROA	0.39%	-17.20%	7.39%	6.53%	6.71%
Adjusted ROA	0.45%	-19.90%	8.71%	7.79%	8.22%

Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31).

Financial ratio	Description	The company
Adjusted total asset turnover	An activity ratio calculated as total revenue divided by adjusted total assets.	Delta Air Lines Inc. adjusted total asset turnover ratio deteriorated from 2019 to 2020 but then slightly improved from 2020 to 2021.
Adjusted ROA	A profitability ratio calculated as net income divided by adjusted total assets.	Delta Air Lines Inc. adjusted ROA deteriorated from 2019 to 2020 but then improved from 2020 to 2021 not reaching 2019 level.

Delta Air Lines Inc., Financial Ratios: Reported vs. Adjusted

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	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019	Dec 31, 2018	Dec 31, 2017
As Reported
Selected Financial Data (US$ in millions)
Operating revenue	29,899)	17,095)	47,007)	44,438)	41,244)
Total assets	72,459)	71,996)	64,532)	60,266)	53,292)
Activity Ratio
Total asset turnover¹	0.41	0.24	0.73	0.74	0.77
Adjusted for Goodwill
Selected Financial Data (US$ in millions)
Operating revenue	29,899)	17,095)	47,007)	44,438)	41,244)
Adjusted total assets	62,706)	62,243)	54,751)	50,485)	43,498)
Activity Ratio
Adjusted total asset turnover²	0.48	0.27	0.86	0.88	0.95

Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31).

2021 Calculations

¹ Total asset turnover = Operating revenue ÷ Total assets
= 29,899 ÷ 72,459 = 0.41

² Adjusted total asset turnover = Operating revenue ÷ Adjusted total assets
= 29,899 ÷ 62,706 = 0.48

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Activity ratio	Description	The company
Adjusted total asset turnover	An activity ratio calculated as total revenue divided by adjusted total assets.	Delta Air Lines Inc. adjusted total asset turnover ratio deteriorated from 2019 to 2020 but then slightly improved from 2020 to 2021.

	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019	Dec 31, 2018	Dec 31, 2017
As Reported
Selected Financial Data (US$ in millions)
Total assets	72,459)	71,996)	64,532)	60,266)	53,292)
Stockholders’ equity	3,887)	1,534)	15,358)	13,687)	13,910)
Solvency Ratio
Financial leverage¹	18.64	46.93	4.20	4.40	3.83
Adjusted for Goodwill
Selected Financial Data (US$ in millions)
Adjusted total assets	62,706)	62,243)	54,751)	50,485)	43,498)
Adjusted stockholders’ equity	(5,866)	(8,219)	5,577)	3,906)	4,116)
Solvency Ratio
Adjusted financial leverage²	—	—	9.82	12.92	10.57

Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31).

2021 Calculations

¹ Financial leverage = Total assets ÷ Stockholders’ equity
= 72,459 ÷ 3,887 = 18.64

² Adjusted financial leverage = Adjusted total assets ÷ Adjusted stockholders’ equity
= 62,706 ÷ -5,866 = —

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	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019	Dec 31, 2018	Dec 31, 2017
As Reported
Selected Financial Data (US$ in millions)
Net income (loss)	280)	(12,385)	4,767)	3,935)	3,577)
Stockholders’ equity	3,887)	1,534)	15,358)	13,687)	13,910)
Profitability Ratio
ROE¹	7.20%	-807.37%	31.04%	28.75%	25.72%
Adjusted for Goodwill
Selected Financial Data (US$ in millions)
Net income (loss)	280)	(12,385)	4,767)	3,935)	3,577)
Adjusted stockholders’ equity	(5,866)	(8,219)	5,577)	3,906)	4,116)
Profitability Ratio
Adjusted ROE²	—	—	85.48%	100.74%	86.90%

Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31).

2021 Calculations

¹ ROE = 100 × Net income (loss) ÷ Stockholders’ equity
= 100 × 280 ÷ 3,887 = 7.20%

² Adjusted ROE = 100 × Net income (loss) ÷ Adjusted stockholders’ equity
= 100 × 280 ÷ -5,866 = —

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	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019	Dec 31, 2018	Dec 31, 2017
As Reported
Selected Financial Data (US$ in millions)
Net income (loss)	280)	(12,385)	4,767)	3,935)	3,577)
Total assets	72,459)	71,996)	64,532)	60,266)	53,292)
Profitability Ratio
ROA¹	0.39%	-17.20%	7.39%	6.53%	6.71%
Adjusted for Goodwill
Selected Financial Data (US$ in millions)
Net income (loss)	280)	(12,385)	4,767)	3,935)	3,577)
Adjusted total assets	62,706)	62,243)	54,751)	50,485)	43,498)
Profitability Ratio
Adjusted ROA²	0.45%	-19.90%	8.71%	7.79%	8.22%

Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31).

2021 Calculations

¹ ROA = 100 × Net income (loss) ÷ Total assets
= 100 × 280 ÷ 72,459 = 0.39%

² Adjusted ROA = 100 × Net income (loss) ÷ Adjusted total assets
= 100 × 280 ÷ 62,706 = 0.45%

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Profitability ratio	Description	The company
Adjusted ROA	A profitability ratio calculated as net income divided by adjusted total assets.	Delta Air Lines Inc. adjusted ROA deteriorated from 2019 to 2020 but then improved from 2020 to 2021 not reaching 2019 level.

Delta Air Lines Inc. (NYSE:DAL)

Analysis of Goodwill and Intangible Assets

Goodwill and Intangible Asset Disclosure

Adjustments to Financial Statements: Removal of Goodwill

Delta Air Lines Inc., Financial Data: Reported vs. Adjusted

Adjusted Financial Ratios: Removal of Goodwill (Summary)

Delta Air Lines Inc., Financial Ratios: Reported vs. Adjusted

Adjusted Total Asset Turnover

Adjusted Financial Leverage

Adjusted Return on Equity (ROE)

Adjusted Return on Assets (ROA)