Delta Airlines 2011 Annual Report Download - page 108

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Corporation, JetBlue Airways Corporation, Southwest Airlines Co., United Continental Holdings, Inc., and US Airways
Group, Inc.
(5) “Performance Period ” means the period beginning on January 1, 2012 and ending on
and including December 31, 2013.
(B) Average Annual Operating Income Margin.
(1) The “ Average Annual Operating Income Margin” for Delta and each member of the
Industry Composite Group shall be calculated by using the subject company's Operating
Income and Total Operating Revenue for the applicable periods and the following
formula: (A ÷ B ), where:
A = Operating Income for 2012 and 2013; and
B = Total Operating Revenue for 2012 and 2013.
(2) “Operating Income ” means, subject to Section 4(b)(v)(B) below, the subject company's
consolidated operating income for the applicable periods based on its regularly prepared
and publicly available statements of operations prepared in accordance with GAAP, but
excluding: (i) any material asset write downs; (ii) gains or losses with respect to unusual
or non-recurring events, including, without limitation, changes in accounting principles,
bankruptcy-related reorganization items, restructuring charges, merger-related costs,
extinguishment of debt and other out of period adjustments; and (iii) expenses accrued
with respect to any annual broad-based employee profit sharing plan, program or
arrangement.
(3) “ Total Operating Revenue” means, subject to Section 4(b)(v)(B) below, the subject
company's total operating revenue for the applicable periods based on its regularly
prepared and publicly available statements of operations prepared in accordance with
GAAP.
(C) Customer Service Performance.
(1) The “Customer Service Performance ” for Delta shall be measured based on the
percentage point improvement in Delta's average monthly Net Promoter Score (“NPS ”)
from the 2011 calendar year to the average monthly NPS over the Performance Period,
with (A) Delta's NPS performance attributable to domestic travel accounting for 60% of
the measure and (ii) Delta's NPS performance attributable to international travel
accounting for 40% of the measure. The criteria and methodology used to determine
Delta's NPS is described in a document titled, “'Net Promoter': Measuring Customer
Satisfaction at Delta,” which was previously reviewed by the Committee. Company
management will periodically report to the Company's Board of Directors regarding
Delta's NPS.
(D) Return on Invested Capital .
(1) The “ Return on Invested Capital” for Delta shall be calculated by using Delta's
Average Operating Income and Average Invested Capital for the applicable periods and
the following formula, (A÷B), where:
5