Delta Air Lines Inc. (DAL)

Delta accounts for deferred income taxes under the liability method. Delta recognizes deferred tax assets and liabilities based on the tax effects of temporary differences between the financial statement and tax basis of assets and liabilities, as measured by current enacted tax rates. Deferred tax assets and liabilities are recorded net as noncurrent deferred income taxes.

A valuation allowance is recorded to reduce deferred tax assets when necessary. Delta periodically assesses whether it is more likely than not that Delta will generate sufficient taxable income to realize the deferred income tax assets. Delta establishes valuation allowances if it is not likely Delta will realize the deferred income tax assets. In making this determination, Delta considers all available positive and negative evidence and makes certain assumptions. Delta considers, among other things, projected future taxable income, scheduled reversals of deferred tax liabilities, the overall business environment, the historical financial results and tax planning strategies.

Source: Delta Air Lines Inc., Annual Report

Delta Air Lines Inc., income tax expense (benefit), continuing operations

USD $ in millions

Source: Based on data from Delta Air Lines Inc. Annual Reports

Item	Description	The company
Current tax provision (benefit)	The component of income tax expense for the period representing amounts of income taxes paid or payable (or refundable) for the period for all income tax obligations as determined by applying the provisions of relevant enacted tax laws to relevant amounts of taxable income (loss) from continuing operations.	Delta Air Lines Inc.'s current tax provision (benefit) declined from 2015 to 2016 but then increased from 2016 to 2017 exceeding 2015 level.
Deferred tax provision (benefit)	The component of income tax expense for the period representing the net change in the entity's deferred tax assets and liabilities pertaining to continuing operations.	Delta Air Lines Inc.'s deferred tax provision (benefit) declined from 2015 to 2016 and from 2016 to 2017.
Income tax provision (benefit)	The sum of the current income tax expense (benefit) and the deferred income tax expense (benefit) pertaining to pretax income (loss) from continuing operations; income tax expense (benefit) may include interest and penalties on tax uncertainties based on the entity's accounting policy.	Delta Air Lines Inc.'s income tax provision (benefit) declined from 2015 to 2016 and from 2016 to 2017.

Delta Air Lines Inc., effective income tax rate (EITR) reconciliation

Source: Based on data from Delta Air Lines Inc. Annual Reports

Item	Description	The company
Effective income tax rate	A ratio calculated by dividing the reported amount of income tax expense attributable to continuing operations for the period by GAAP-basis pretax income from continuing operations.	Delta Air Lines Inc.'s effective income tax rate declined from 2015 to 2016 but then increased from 2016 to 2017 exceeding 2015 level.

Delta Air Lines Inc., components of deferred tax assets and liabilities

USD $ in millions

Source: Based on data from Delta Air Lines Inc. Annual Reports

Item	Description	The company
Deferred tax assets, gross	The sum of the tax effects as of the balance sheet date of the amounts of all future tax deductions arising from temporary differences between tax basis and generally accepted accounting principles basis recognition of assets, liabilities, revenues and expenses, which can only be deducted for tax purposes when permitted under enacted tax laws (before the valuation allowance, if any, to reduce such sum amount to net realizable value). Includes any tax benefit realized in deferred tax assets for significant impacts of tax planning strategies.	Delta Air Lines Inc.'s deferred tax assets, gross declined from 2015 to 2016 and from 2016 to 2017.
Deferred tax assets	The aggregate tax effects as of the balance sheet date of all future tax deductions arising from temporary differences between tax basis and generally accepted accounting principles basis recognition of assets, liabilities, revenues and expenses, which can only be deducted for tax purposes when permitted under enacted tax laws; net of deducting the allocated valuation allowance, if any, to reduce such amount to net realizable value.	Delta Air Lines Inc.'s deferred tax assets declined from 2015 to 2016 and from 2016 to 2017.
Net deferred tax assets (liabilities)	For entities that net deferred tax assets and tax liabilities, represents the unclassified net amount of deferred tax assets and liabilities as of the balance sheet date, which result from applying the applicable enacted tax rate to net temporary differences and carryforwards pertaining to assets or liabilities. A temporary difference is a difference between the tax basis of an asset or liability and its carrying amount in the financial statements prepared in accordance with generally accepted accounting principles that will reverse in ensuing periods.	Delta Air Lines Inc.'s net deferred tax assets (liabilities) declined from 2015 to 2016 and from 2016 to 2017.

Delta Air Lines Inc., deferred tax assets and liabilities, classification

USD $ in millions

Source: Based on data from Delta Air Lines Inc. Annual Reports

Item	Description	The company
Current deferred tax assets, net	The current portion of the aggregate tax effects as of the balance sheet date of all future tax deductions arising from temporary differences between tax basis and generally accepted accounting principles basis recognition of assets, liabilities, revenues and expenses, which can only be deducted for tax purposes when permitted under enacted tax laws; after deducting the allocated valuation allowance, if any, to reduce such amount to net realizable value. Deferred tax liabilities and assets shall be classified as current or noncurrent based on the classification of the related asset or liability for financial reporting. A deferred tax liability or asset that is not related to an asset or liability for financial reporting, including deferred tax assets related to carryforwards, shall be classified according to the expected reversal date of the temporary difference. An unrecognized tax benefit that is directly related to a position taken in a tax year that results in a net operating loss carryforward should be presented as a reduction of the related deferred tax asset.
Noncurrent deferred tax assets, net	The noncurrent portion as of the balance sheet date of the aggregate carrying amount of all future tax deductions arising from temporary differences between tax basis and generally accepted accounting principles basis recognition of assets, liabilities, revenues and expenses, which can only be deducted for tax purposes when permitted under enacted tax laws; after the valuation allowance, if any, to reduce such amount to net realizable value. Deferred tax liabilities and assets shall be classified as current or noncurrent based on the classification of the related asset or liability for financial reporting. A deferred tax liability or asset that is not related to an asset or liability for financial reporting, including deferred tax assets related to carryforwards, shall be classified according to the expected reversal date of the temporary difference.	Delta Air Lines Inc.'s noncurrent deferred tax assets, net declined from 2015 to 2016 and from 2016 to 2017.

Delta Air Lines Inc., adjustments to financial data

USD $ in millions

Delta Air Lines Inc., adjusted ratios

Ratio	Description	The company
Adjusted current ratio	A liquidity ratio calculated as adjusted current assets divided by adjusted current liabilities.	Delta Air Lines Inc.'s adjusted current ratio deteriorated from 2015 to 2016 and from 2016 to 2017.
Adjusted net profit margin	An indicator of profitability, calculated as adjusted net income divided by total revenue.	Delta Air Lines Inc.'s adjusted net profit margin deteriorated from 2015 to 2016 and from 2016 to 2017.
Adjusted total asset turnover	An activity ratio calculated as total revenue divided by adjusted total assets.	Delta Air Lines Inc.'s adjusted total asset turnover deteriorated from 2015 to 2016 and from 2016 to 2017.
Adjusted financial leverage	A measure of financial leverage calculated as adjusted total assets divided by adjusted total equity. Financial leverage is the extent to which a company can effect, through the use of debt, a proportional change in the return on common equity that is greater than a given proportional change in operating income.	Delta Air Lines Inc.'s adjusted financial leverage declined from 2015 to 2016 and from 2016 to 2017.
Adjusted ROE	A profitability ratio calculated as adjusted net income divided by adjusted shareholders' equity.	Delta Air Lines Inc.'s adjusted ROE deteriorated from 2015 to 2016 and from 2016 to 2017.
Adjusted ROA	A profitability ratio calculated as adjusted net income divided by adjusted total assets.	Delta Air Lines Inc.'s adjusted ROA deteriorated from 2015 to 2016 and from 2016 to 2017.

2017 Calculations

Ratio	Description	The company
Adjusted current ratio	A liquidity ratio calculated as adjusted current assets divided by adjusted current liabilities.	Delta Air Lines Inc.'s adjusted current ratio deteriorated from 2015 to 2016 and from 2016 to 2017.

2017 Calculations

Ratio	Description	The company
Adjusted net profit margin	An indicator of profitability, calculated as adjusted net income divided by total revenue.	Delta Air Lines Inc.'s adjusted net profit margin deteriorated from 2015 to 2016 and from 2016 to 2017.

2017 Calculations

Ratio	Description	The company
Adjusted total asset turnover	An activity ratio calculated as total revenue divided by adjusted total assets.	Delta Air Lines Inc.'s adjusted total asset turnover deteriorated from 2015 to 2016 and from 2016 to 2017.

2017 Calculations

Ratio	Description	The company
Adjusted financial leverage	A measure of financial leverage calculated as adjusted total assets divided by adjusted total equity. Financial leverage is the extent to which a company can effect, through the use of debt, a proportional change in the return on common equity that is greater than a given proportional change in operating income.	Delta Air Lines Inc.'s adjusted financial leverage declined from 2015 to 2016 and from 2016 to 2017.

2017 Calculations

Ratio	Description	The company
Adjusted ROE	A profitability ratio calculated as adjusted net income divided by adjusted shareholders' equity.	Delta Air Lines Inc.'s adjusted ROE deteriorated from 2015 to 2016 and from 2016 to 2017.

2017 Calculations

Ratio	Description	The company
Adjusted ROA	A profitability ratio calculated as adjusted net income divided by adjusted total assets.	Delta Air Lines Inc.'s adjusted ROA deteriorated from 2015 to 2016 and from 2016 to 2017.