During the quarter ended December 31, 2008, the Company discontinued all of its construction technology activities that were carried out by its wholly owned subsidiary, Delta Technologies, Inc. They operate the Trainer refinery and related assets located near Philadelphia, Pennsylvania, as part of our strategy to mitigate the increasing cost of the refining margin reflected in the price of jet fuel. Passenger unit revenues increased 4. Because these businesses are not related to the generation of a seat mile, we adjust for the costs related to these sales to provide a more meaningful comparison of the costs of our airline operations to the rest of the airline industry. The property has four wells- one of the four being a salt water disposal well. Because these businesses are not related to the generation of a seat mile, we exclude the costs related to these sales to provide a more meaningful comparison of the costs of our airline operations to the rest of the airline industry. We released substantially all of our valuation allowance against our net deferred tax assets on December 31, 2013.
The airline industry is highly competitive, marked by significant competition with respect to routes, fares, schedules both timing and frequency , services, products, customer service and frequent flyer programs. Our ability to compete in the domestic market effectively depends, in part, on our ability to maintain a competitive cost structure. The key assumptions in our impairment tests include: 1 forecasted revenues, expenses and cash flows, 2 terminal period revenue growth and cash flows, 3 an estimated weighted average cost of capital, 4 assumed discount rates depending on the asset and 5 a tax rate. These inherent limitations include, but are not limited to, the realities that judgments in decision-making can be faulty and that breakdowns can occur because of simple error or mistake. In addition, any future determination to pay cash dividends will be at the discretion of the Board of Directors, subject to applicable limitations under Delaware law, and will be dependent upon our results of operations, financial condition, cash requirements, future prospects and other factors deemed relevant by the Board of Directors. For example, the Aviation and Transportation Security Act mandates the federalization of certain airport security procedures and imposes security requirements on airports and airlines, most of which are funded by a per ticket tax on passengers and a tax on airlines.
After Landmaster worked over 5 wells in one of its leases, it moved to the Kieke Lease to begin production there. Mileage credits are subject to certain transfer restrictions and travel awards are subject to capacity-controlled seating. As a result of restructuring the fleet, we expect to benefit from improved operational and fuel efficiency, customer service and reduced future maintenance cost that we will experience over the life of the new aircraft. As a secondary focus, the Company has also made investments in an early-stage water transportation company. If any or all of these events occur, they could have a material adverse effect on our business, financial condition and results of operations. If we fail to comply with these covenants and are unable to remedy or obtain a waiver or amendment, an event of default would result. The new approach is expected to generate a greater return with a low level of risk due to diversification.
The Final Rule was effective for annual reports on Form10-K for fiscal years ending on or after December 31, 2009. We believe that adjusting this period allows investors to better understand and analyze the company's core operational performance on a year-over-year basis. Ongoing bilateral discussions between the U. These items adjust fuel expense to show the economic impact of hedging, including cash received or paid on hedge contracts during the period. The results of operations for the nine and three months ended September 30, 2010 and 2009 are not necessarily indicative of the results for the entire fiscal year or for any other period. Financial information on our segment reporting can be found in Note 2 of the Notes to the Consolidated Financial Statements.
. In general, these arrangements include reciprocal codesharing and frequent flyer program participation and airport lounge access arrangements, and with some carriers may also include joint sales and marketing coordination, co-location of airport facilities and other commercial cooperation arrangements. We defer revenue for the mileage credits related to passenger ticket sales and recognize it as passenger revenue when miles are redeemed and services are provided. In the opinion of management, all adjustments, including normal recurring adjustments necessary to present fairly the financial position of the Company with respect to the interim financial statements and the results of operations for the interim period ended September 30, 2010, have been included. Our most significant contract to sell mileage credits relates to our co-brand credit card relationship with American Express. The Company is currently evaluating other prospects for acquisitions.
The Closing, with the issuance of the transfer decree for Tartagal and Morillo by the Province of Salta, has not occurred due to delays by High Luck Group in completing work units for the property, and the parties are in negotiation as to resolution of matters under the Assignment Agreement. Reimbursements related to build-to-suit facilities and other. These arrangements enable us to better match capacity with demand in these markets. The methods used to obtain unauthorized access, disable or degrade service or sabotage systems are constantly evolving, and may be difficult to anticipate or to detect for long periods of time. We believe that the increase in jet fuel supply due to the refinery's operation has reduced the overall market price of jet fuel, and thus lowered our cost of jet fuel.
Footnote 3 further discloses this investment. In addition, we consider the amount by which the intangible assets' fair value exceeded their carrying value in the most recent fair value measurement calculated using a quantitative approach. In February 2011, a putative class action was filed in the U. This value is based on various factors, including the assets' estimated useful lives and salvage values. This property has 4 wells, 2 of them being potential producers, and one of them being a salt water disposal well.
The Company uses the Black-Scholes Option Pricing Model to determine the fair-value of stock options issued for compensation. Changes in key inputs and assumptions, including 1 our strategy related to the composition of our Pacific network and flying, 2 new or enhanced joint ventures or alliances, 3 foreign currency exchange rates, 4 fuel costs and 5 Pacific region profitability, could impact the value of this asset in the future. Our operations in the Far East Indonesia and our construction operations in Puerto Rico were discontinued in 2008. Readers should not assume that the information contained on this site has been updated or otherwise contains current information. Although we believe that our insurance coverage is appropriate, we may be forced to bear substantial losses from an accident in the event that the coverage was not sufficient.
We recognize the revenue for these services as they are performed. Assumptions include, among other things, the actual and projected market performance of assets; statutory requirements; and demographic data for participants. Disruptions or interruptions of production at the refinery could result from various sources including a major accident or mechanical failure, interruption of supply or delivery of crude oil, work stoppages relating to organized labor issues, or damage from severe weather or other natural or man-made disasters, including acts of terrorism. The requisite approvals of other governments for international operations are controlled by bilateral agreements and a multilateral agreement in the case of the U. We utilize different contract and commodity types in this program and frequently test their economic effectiveness against our financial targets. Our credit facilities have covenants, including minimum collateral coverage ratios. The Railway Labor Act generally prohibits strikes or other types of self help actions both before and after a collective bargaining agreement becomes amendable, unless and until the collective bargaining processes required by the Railway Labor Act have been exhausted.
Headquartered in Atlanta, Delta employs more than 80,000 employees worldwide and operates a mainline fleet of more than 800 aircraft. In addition to the heightened level of concern regarding privacy of passenger data in the U. An increasing number of our tickets are sold through Delta digital channels, which reduces our distribution costs and gives us improved and direct, personalized interaction with our customers. We adopted this standard in 2012 and have presented comprehensive income in our Consolidated Statements of Comprehensive Income Loss. Depreciation, depletion, and amortization of capitalized oil and gas properties and estimated future development costs, excluding unproved properties, are based on the unit-of-production method based on proved reserves. We have audited the accompanying consolidated balance sheets of Delta Air Lines, Inc. The Company now owns 51% and controls 100% through an agreement between the parties of an area of approximately 147,000 hectares approximately 350,000 acres in an area of North Guayatayoc, Argentina.