So Delta Airlines lost $10 billion due to writedowns

[JS80]

Q1 loss on "fuel costs"

US Airways' earnings report came a day after Northwest Airlines Corp. and Delta Air Lines Inc. reported combined losses of more than $10 billion. Most of those losses came on write-downs to reflect a decline in market value. Excluding the charges, Northwest said it would have lost $191 million while Delta said it would have lost $274 million. Delta has agreed to buy Northwest.

What did they write down? Goodwill? Why would goodwill value go down because fuel costs rose?

 

[PricklyPete]

Jerry: So, we're going to make the post office pay for my new stereo, now?
Kramer: It's a write-off for them.
Jerry: How is it a write-off?
Kramer: They just write it off.
Jerry: Write it off what?
Kramer: Jerry all these big companies they write off everything.
Jerry: You don't even know what a write-off is.
Kramer: Do you?
Jerry: No, I don't.
Kramer: But they do - and they are the ones writing it off.

 

[DisgruntledVirus]

Originally posted by: PricklyPete
Jerry: So, we're going to make the post office pay for my new stereo, now?
Kramer: It's a write-off for them.
Jerry: How is it a write-off?
Kramer: They just write it off.
Jerry: Write it off what?
Kramer: Jerry all these big companies they write off everything.
Jerry: You don't even know what a write-off is.
Kramer: Do you?
Jerry: No, I don't.
Kramer: But they do - and they are the ones writing it off.

How many times will I see this quote used in one week on these boards? lol

 

[Anubis]

Originally posted by: DisgruntledVirus

Originally posted by: PricklyPete
Jerry: So, we're going to make the post office pay for my new stereo, now?
Kramer: It's a write-off for them.
Jerry: How is it a write-off?
Kramer: They just write it off.
Jerry: Write it off what?
Kramer: Jerry all these big companies they write off everything.
Jerry: You don't even know what a write-off is.
Kramer: Do you?
Jerry: No, I don't.
Kramer: But they do - and they are the ones writing it off.

How many times will I see this quote used in one week on these boards? lol

i dint know but i LOL every time

 

[LegendKiller]

Goodwill and other intangibles. If often happens with companies that are acquiring other companies, or have been spun off, or a myriad of other reasons. The impairment and subsequent writedown is due to the market value of the goodwill and intangibles being lower, reflected in the lower stock price.

 

[JS80]

Originally posted by: LegendKiller
Goodwill and other intangibles. If often happens with companies that are acquiring other companies, or have been spun off, or a myriad of other reasons. The impairment and subsequent writedown is due to the market value of the goodwill and intangibles being lower, reflected in the lower stock price.

What did they acquire last year that cost $12 billion (based on Q2 goodwill of $227m vs Q3 goodwill of $12.3b)? But then their liabilities dropped significantly during that time which makes no sense.

 

[Atomic Playboy]

I write down lots of stuff. The address of the bank, the rotation of the guards, the formula for trinitrotoluene, the confirmation number for my ticket to Tahiti, your girlfriend's phone number...