Delta Airlines 2011 Annual Report Download - page 119

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* Notwithstanding the weightings set forth above, the Committee has delegated to the Chief Executive Officer of the
Company, the authority to reallocate up to an aggregate of (i) twenty percentage points for Senior Vice Presidents and
Vice Presidents, and (ii) ten percentage points for Managing Directors and Directors, of the Target MIP Award allocated
to Financial Performance to one or both of the Operational Performance and Revenue Performance weightings.
6. The Performance Measures-Threshold, Target and Maximum Payout Levels. The Target MIP Award, and the
amounts paid in connection with target levels of Financial, Operational, Revenue, Leadership Effectiveness, and
Individual Performance, are based on the achievement of the target performance level with respect to each applicable
performance measure (except that Financial Performance also requires a payout under the Profit Sharing Program for
2012). A Participant's actual MIP Award may be greater or less than the target amount based on whether performance
under one or more of the performance measures applicable to the Participant exceeds or is below target performance,
subject to Section 4(c) above. This is explained in more detail below.
(a) Financial Performance Measures. The Financial Performance measures for 2012 are based on Delta's Pre-
Tax Income, as defined below. The following table describes the performance ranges and award payout levels for 2012
Financial Performance, subject to Section 4(c) above:
Threshold Target Maximum
% of Target Financial Performance Measure Paid 50% 100% 200%
Required 2012 Pre-Tax
Income
$837 Million $1,674 Million $2,227 Million
Payouts will be straight-line interpolated when Pre-Tax Income results fall above Threshold and below Target or above
Target and below Maximum.
“Pre-Tax Income” will be the amount of Pre-Tax Income, if any, determined under the Profit Sharing Program for
2012.1
(b) Operational Performance Measures. The Operational Performance measures for 2012 are based on both
Delta and Delta Connection operational performance, with (i) Delta's operational performance accounting for 75% of the
measure and (ii) Delta Connection performance accounting for 25% of the measure. Delta's Operational Performance is
based on the number of times during 2012 that Delta meets or exceeds its monthly goals under the broad-based employee
shared rewards program (the “Shared Rewards Program”). Delta Connection's Operational Performance is based on the
number of times during 2012 that the Delta Connection carriers meet or exceed their monthly operational goals for (x)
completion factor and (y) on-time performance (the “Delta Connection Goals”). The Delta Connection Goals and the
methodology for determining whether these goals are met are described in Exhibit A hereto. The following table
describes the performance ranges and award payout levels for 2012 Operational Performance, subject to Section 4(c)
above:
_________________________________
1 The Profit Sharing Program for 2012 defines “Pre-Tax Income” as follows: for any calendar year, the Company's consolidated pre-tax income calculated
in accordance with Generally Accepted Accounting Principles in the United States and as reported in the Company's public securities filings but excluding:
(a) all asset write downs related to long term assets, (b) gains or losses with respect to employee equity securities, (c) gains or losses with respect to
extraordinary, one-time or non-recurring events, and (d) expense accrued with respect to the profit sharing plan and the MIP.
3