Excerpt from Ford Motor Company 2018 10K regarding Income Taxes NOTE 7. INCOME TAXES (Continued) Our accounting for deferred tax consequences represents our best estimate of the likely future tax consequences of events that have been recognized on our financial statements or tax returns and their future probability. In assessing the need for a valuation allowance, we consider both positive and negative evidence related to the likelihood of realization of the deferred tax assets. If, based on the weight of available evidence, it is more likely than not that the deferred tax assets will not be realized, we record a valuation allowance. Components of Income Taxes Components of income taxes excluding cumulative effects of changes in accounting principles, other comprehensive income, and equity in net results of affiliated companies accounted for after-tax, for the years ended December 31 were as follows: 2016 2017 2018 Income before income taxes (in millions) U.S. 5,254 4,861 2$ 2,051 2,294 1,530 Non-U.S. 3,298 4,345 6,784 Total 24 8,159 Provision for/(Benefit from) income taxes (in millions) Current Federal 24 2$ (125) (122) 75 Non-U.S. 630 868 690 State and local 12 85 (6) Total current 520 828 759 Deferred Federal (1,214) 1,318 (360) Non-U.S. 121 593 239 225 State and local 195 12 1,664 Total deferred (426) (109) Total 2,184 402 650 On December 22, 2017, the Tax Cuts and Jobs Act (H.R. 1) was signed into law. This act includes, among other items, a permanent reduction to the U.S. corporate income tax rate from 35% to 21% effective January 1, 2018, and requires immediate taxation of accumulated, unremitted non-U.S. earnings. As a result, at December 31, 2017, we recognized a tax benefit of $739 million from revaluing U.S. net deferred tax liabilities and tax expense of $219 million to record U.S. tax on unremitted non-U.S. earnings. Our 2018 tax provision includes an additional benefit of $123 million reflecting updates to the impact of the act on our global operations. Excerpt from Honeywell Inc 2018 10K regarding Employee Pension Benefit Plans Note 21. Pension and Other Postretirement Benefits We sponsor a number of both funded and unfunded U.S. and non-U.S. defined benefit pension plans. Pension benefits for many of our U.S. employees are provided through non-contributory, qualified and non-qualified defined benefit plans. All non-union hourly and salaried employees joining Honeywell for the first time after December 31, 2012, are not eligible to participate in Honeywell's U.S. defined benefit pension plans. We also sponsor defined benefit pension plans which cover non-U.S. employees who are not U.S. citizens, in certain jurisdictions, principally the UK, Netherlands, Germany, and Canada. Other pension plans outside of the U.S. are not material to the Company either individually or in the aggregate. We also sponsor postretirement benefit plans that provide health care benefits and life insurance coverage mainly to U.S. eligible retirees. None of Honeywell's U.S. employees are eligible for a retiree medical subsidy from the Company. In addition, the vast majority of Honeywell's U.S. retirees either have no Company subsidy or have a fixed-dollar subsidy amount. This significantly limits our exposure to the impact of future health care cost increases. The retiree medical and life insurance plans are not funded. Claims and expenses are paid from our operating cash flow. The following tables summarize the balance sheet impact, including the benefit obligations, assets and funded status associated with our significant pension and other postretirement benefit plans. Pension Benefits U.S. Plans Non-U.S. Plans 2018 2017 2018 2017 Change in benefit obligation: Benefit obligation at beginning of year $18,151 $17,414 $7,019 $6,483 Service cost 140 172 26 40 Interest cost 573 586 143 147 Plan amendments Actuarial (gains) losses Benefits paid 30 (1) (24) (253) (1,111) (1,137) 1,234 (356) (264) (9) (342) (65) 6,182 (1,146) (109) Settlements and curtailments Foreign currency translation 614 13 Other (475) Benefit obligation at end of year 16,141 18,151 7,019 Change in plan assets: Fair value of plan assets at beginning of year 18,985 (303) 7,151 (173) 6,120 16,814 3,287 Actual return on plan assets 539 Company contributions Benefits paid 34 139 137 161 (1,146) (109) (1,137) (264) (253) Settlements and curtailments Foreign currency translation Other (378) 569 (470) 15 Fair value of plan assets at end of year 7,151 $ 132 17,109 18,985 6,481 $ 299 Funded status of plans 968 834 Pension Benefits U.S. Plans Non-U.S. Plans Net Periodic Benefit Cost 2018 2018 $ 26 2017 2016 2017 2016 $ 47 Service cost 140 172 191 40 Interest cost 573 586 600 143 147 179 (1,426) (1,262) Expected return on plan assets (1,226) (443) (411) (377) Amortization of prior service (credit) cost Recognition of actuarial losses (43) (43) (43) (1) (1) (3) 41 27 37 46 246 Settlements and curtailments 18 (3) (7) $ (488) $ (756) (451) $ 85 Net periodic benefit (income) cost $(241) $(179) Excerpt from Delta Inc 2018 10K regarding Lease Positions Lease Position as of December 31, 2018 The table below presents the lease-related assets and liabilities recorded on the balance sheet. (in millions) Classification on the Balance Sheet December 31, 2018 Assets Operating lease assets Operating lease right-of-use assets 5,994 Finance lease assets Property and equipment, net 490 Total lease assets 6,484 Liabilities Current Current maturities of operating leases Operating 955 Finance Current maturities of long-term debt and finance leases 109 Noncurrent Operating Noncurrent operating leases 5,801 Finance Long-term debt and finance leases 294 Total lease liabilities 7,159 Undiscounted Cash Flows The table below reconciles the undiscounted cash flows for each of the first five years and total of the remaining years to the finance lease liabilities and operating lease liabilities recorded on the balance sheet. Operating Leases (in millions) Finance Leases 2019 1,172 $ 127 2020 1,000 89 2021 819 75 2022 692 33 2023 654 27 Thereafter 4,200 111 Total minimum lease payments 8,537 462 Less: amount of lease payments representing interest (1,781) (59) Present value of future minimum lease payments 6,756 403 Less: current obligations under leases (955) (109) Long-term lease obligations 5,801 S 294 7. Delta has adopted the new lease accounting standards where both operating and finance type leases must be reported as an asset and liability on the balance sheet. Using the footnote information provided, provide the dollar amount that Delta reports on its balance sheet associated with leases. 8. What are Delta's total estimated future minimum lease payments related to operating type leases? What are Delta's total estimated future minimum lease payments related to finance type leases? If these are future obligated payments, why are these amounts different from what is identified as a liability on Delta's balance sheet (per question 7)? Excerpt from Ford Motor Company 2018 10K regarding Income Taxes NOTE 7. INCOME TAXES (Continued) Our accounting for deferred tax consequences represents our best estimate of the likely future tax consequences of events that have been recognized on our financial statements or tax returns and their future probability. In assessing the need for a valuation allowance, we consider both positive and negative evidence related to the likelihood of realization of the deferred tax assets. If, based on the weight of available evidence, it is more likely than not that the deferred tax assets will not be realized, we record a valuation allowance. Components of Income Taxes Components of income taxes excluding cumulative effects of changes in accounting principles, other comprehensive income, and equity in net results of affiliated companies accounted for after-tax, for the years ended December 31 were as follows: 2016 2017 2018 Income before income taxes (in millions) U.S. 5,254 4,861 2$ 2,051 2,294 1,530 Non-U.S. 3,298 4,345 6,784 Total 24 8,159 Provision for/(Benefit from) income taxes (in millions) Current Federal 24 2$ (125) (122) 75 Non-U.S. 630 868 690 State and local 12 85 (6) Total current 520 828 759 Deferred Federal (1,214) 1,318 (360) Non-U.S. 121 593 239 225 State and local 195 12 1,664 Total deferred (426) (109) Total 2,184 402 650 On December 22, 2017, the Tax Cuts and Jobs Act (H.R. 1) was signed into law. This act includes, among other items, a permanent reduction to the U.S. corporate income tax rate from 35% to 21% effective January 1, 2018, and requires immediate taxation of accumulated, unremitted non-U.S. earnings. As a result, at December 31, 2017, we recognized a tax benefit of $739 million from revaluing U.S. net deferred tax liabilities and tax expense of $219 million to record U.S. tax on unremitted non-U.S. earnings. Our 2018 tax provision includes an additional benefit of $123 million reflecting updates to the impact of the act on our global operations. Excerpt from Honeywell Inc 2018 10K regarding Employee Pension Benefit Plans Note 21. Pension and Other Postretirement Benefits We sponsor a number of both funded and unfunded U.S. and non-U.S. defined benefit pension plans. Pension benefits for many of our U.S. employees are provided through non-contributory, qualified and non-qualified defined benefit plans. All non-union hourly and salaried employees joining Honeywell for the first time after December 31, 2012, are not eligible to participate in Honeywell's U.S. defined benefit pension plans. We also sponsor defined benefit pension plans which cover non-U.S. employees who are not U.S. citizens, in certain jurisdictions, principally the UK, Netherlands, Germany, and Canada. Other pension plans outside of the U.S. are not material to the Company either individually or in the aggregate. We also sponsor postretirement benefit plans that provide health care benefits and life insurance coverage mainly to U.S. eligible retirees. None of Honeywell's U.S. employees are eligible for a retiree medical subsidy from the Company. In addition, the vast majority of Honeywell's U.S. retirees either have no Company subsidy or have a fixed-dollar subsidy amount. This significantly limits our exposure to the impact of future health care cost increases. The retiree medical and life insurance plans are not funded. Claims and expenses are paid from our operating cash flow. The following tables summarize the balance sheet impact, including the benefit obligations, assets and funded status associated with our significant pension and other postretirement benefit plans. Pension Benefits U.S. Plans Non-U.S. Plans 2018 2017 2018 2017 Change in benefit obligation: Benefit obligation at beginning of year $18,151 $17,414 $7,019 $6,483 Service cost 140 172 26 40 Interest cost 573 586 143 147 Plan amendments Actuarial (gains) losses Benefits paid 30 (1) (24) (253) (1,111) (1,137) 1,234 (356) (264) (9) (342) (65) 6,182 (1,146) (109) Settlements and curtailments Foreign currency translation 614 13 Other (475) Benefit obligation at end of year 16,141 18,151 7,019 Change in plan assets: Fair value of plan assets at beginning of year 18,985 (303) 7,151 (173) 6,120 16,814 3,287 Actual return on plan assets 539 Company contributions Benefits paid 34 139 137 161 (1,146) (109) (1,137) (264) (253) Settlements and curtailments Foreign currency translation Other (378) 569 (470) 15 Fair value of plan assets at end of year 7,151 $ 132 17,109 18,985 6,481 $ 299 Funded status of plans 968 834 Pension Benefits U.S. Plans Non-U.S. Plans Net Periodic Benefit Cost 2018 2018 $ 26 2017 2016 2017 2016 $ 47 Service cost 140 172 191 40 Interest cost 573 586 600 143 147 179 (1,426) (1,262) Expected return on plan assets (1,226) (443) (411) (377) Amortization of prior service (credit) cost Recognition of actuarial losses (43) (43) (43) (1) (1) (3) 41 27 37 46 246 Settlements and curtailments 18 (3) (7) $ (488) $ (756) (451) $ 85 Net periodic benefit (income) cost $(241) $(179) Excerpt from Delta Inc 2018 10K regarding Lease Positions Lease Position as of December 31, 2018 The table below presents the lease-related assets and liabilities recorded on the balance sheet. (in millions) Classification on the Balance Sheet December 31, 2018 Assets Operating lease assets Operating lease right-of-use assets 5,994 Finance lease assets Property and equipment, net 490 Total lease assets 6,484 Liabilities Current Current maturities of operating leases Operating 955 Finance Current maturities of long-term debt and finance leases 109 Noncurrent Operating Noncurrent operating leases 5,801 Finance Long-term debt and finance leases 294 Total lease liabilities 7,159 Undiscounted Cash Flows The table below reconciles the undiscounted cash flows for each of the first five years and total of the remaining years to the finance lease liabilities and operating lease liabilities recorded on the balance sheet. Operating Leases (in millions) Finance Leases 2019 1,172 $ 127 2020 1,000 89 2021 819 75 2022 692 33 2023 654 27 Thereafter 4,200 111 Total minimum lease payments 8,537 462 Less: amount of lease payments representing interest (1,781) (59) Present value of future minimum lease payments 6,756 403 Less: current obligations under leases (955) (109) Long-term lease obligations 5,801 S 294 7. Delta has adopted the new lease accounting standards where both operating and finance type leases must be reported as an asset and liability on the balance sheet. Using the footnote information provided, provide the dollar amount that Delta reports on its balance sheet associated with leases. 8. What are Delta's total estimated future minimum lease payments related to operating type leases? What are Delta's total estimated future minimum lease payments related to finance type leases? If these are future obligated payments, why are these amounts different from what is identified as a liability on Delta's balance sheet (per question 7)