DEBT

12 Months Ended

Dec. 31, 2022

Debt Disclosure [Abstract]

DEBT

DEBT

The following table summarizes our debt as of the dates indicated below:

Summary of outstanding debt by category
	Maturity			Interest Rate(s) Per Annum at			December 31,
(in millions)	Dates			December 31, 2022			2022		2021
Unsecured Payroll Support Program Loans	2030	to	2031	1.00%			$	3,496	$	3,496
Unsecured notes	2023	to	2029	2.90%	to	7.38%	2,997		4,354
Financing arrangements secured by SkyMiles assets:
SkyMiles Notes(1)	2023	to	2028	4.50%	and	4.75%	5,144		6,000
SkyMiles Term Loan(1)(2)	2023	to	2027	7.99%			2,820		2,820
Financing arrangements secured by aircraft:
Certificates(1)	2023	to	2028	2.00%	to	8.00%	1,802		1,932
Notes(1)(2)	2023	to	2033	2.08%	to	6.85%	813		1,139
NYTDC Special Facilities Revenue Bonds(1)	2023	to	2045	4.00%	to	5.00%	2,838		2,894
Financing arrangements secured by slots, gates and/or routes:
2020 Senior Secured Notes	2025			7.00%			1,542		2,589
2018 Revolving Credit Facility(2)	2024	to	2025	Undrawn			—		—
Other financings(1)(2)	2023	to	2030	2.51%	to	5.00%	67		68
Other revolving credit facilities(2)	2023	to	2025	Undrawn			—		—
Total secured and unsecured debt							21,519		25,292
Unamortized (discount)/premium and debt issuance cost, net and other							(138)		(208)
Total debt							21,381		25,084
Less: current maturities							(2,055)		(1,502)
Total long-term debt							$	19,326	$	23,582

(1)Due in installments.

(2)Certain financings are comprised of variable rate debt. All variable rates are equal to LIBOR (generally subject to a floor) or another index rate plus a specified margin.

Early Settlement of Outstanding Notes

In 2022, we completed a cash tender offer for an aggregate purchase price of $1.5 billion, excluding accrued and unpaid interest, of certain of our outstanding debt securities. As a result of the tender offer, we repurchased the following notes:

Notes Repurchased in Tender Offer
(in millions)	Location in debt table	Principal Repurchased		Amount Paid
4.500% Senior Secured Notes due 2025	SkyMiles Notes	$	856	$	850
7.000% Senior Secured Notes due 2025	2020 Senior Secured Notes	478		498
7.375% Notes due 2026	Unsecured Notes	84		87
3.800% Notes due 2023	Unsecured Notes	65		65
Total Notes Repurchased		$	1,483	$	1,500

During 2022, in addition to the cash tender offer, we also repurchased $778 million of various secured and unsecured notes on the open market. Collectively, these payments resulted in a $100 million loss on extinguishment of debt, which is recorded in non-operating expense in our income statement.

Availability Under Revolving Facilities

As of December 31, 2022, we had approximately $2.9 billion undrawn and available under our revolving credit facilities. In addition, we had $400 million of outstanding letters of credit as of December 31, 2022 that did not affect the availability under our revolvers.

Fair Value of Debt

Market risk associated with our fixed- and variable-rate debt relates to the potential reduction in fair value and negative impact to future earnings, respectively, from an increase in interest rates. The fair value of debt, shown below, is principally based on reported market values, recently completed market transactions and estimates based on interest rates, maturities, credit risk and underlying collateral. Debt is primarily classified as Level 2 within the fair value hierarchy.

Fair value of outstanding debt
(in millions)	December 31, 2022		December 31, 2021
Net carrying amount	$	21,381	$	25,084
Fair value	$	20,700	$	26,900

Covenants

Our debt agreements contain various affirmative, negative and financial covenants. For example, our credit facilities and our SkyMiles financing agreements, contain, among other things, a minimum liquidity covenant. The minimum liquidity covenant requires us to maintain at least $2.0 billion of liquidity (defined as cash, cash equivalents, short-term investments and aggregate principal amount committed and available to be drawn under our revolving credit facilities). Certain of our debt agreements also include collateral coverage ratios and limit our ability to (1) incur liens under certain circumstances, (2) dispose of collateral and (3) engage in mergers and consolidations or transfer all or substantially all of our assets. Our SkyMiles financing agreements include a debt service coverage ratio and also restrict our ability to, among other things, (1) modify the terms of the SkyMiles program, or otherwise change the policies and procedures of the SkyMiles program, in a manner that would reasonably be expected to materially impair repayment of the SkyMiles Debt, (2) sell pre-paid miles in excess of $550 million in the aggregate and (3) terminate or materially modify the intercompany arrangements governing the relationship between Delta and SkyMiles IP Ltd. with respect to the SkyMiles program.

Each of these restrictions, however, is subject to certain exceptions and qualifications that are set forth in these debt agreements. We were in compliance with the covenants in our debt agreements at December 31, 2022.

Future Maturities

The following table summarizes scheduled maturities of our debt for the years succeeding December 31, 2022:

Future debt maturities
(in millions)	Total Debt		Amortization of Debt (Discount)/Premium and Debt Issuance Cost, net and other
2023	$	2,058	$	(54)
2024	2,809		(54)
2025	2,882		(36)
2026	2,838		(8)
2027	2,493		(1)
Thereafter	8,439		15
Total	$	21,519	$	(138)	$	21,381