Delta Airlines 2012 Annual Report Download - page 381

A = Adjusted Total Operating Income; and
B = Average Invested Capital.
A = Adjusted Book Value of Equity; and
B = Adjusted Net Debt.
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For example, for determining Average Invested Capital for the 2013 calendar year, the trailing five calendar quarter average will be measured based on the quarter
ending December 31, 2012 and each of the subsequent four quarters of 2013.
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(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 2012 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 Adjusted Total
Operating Income and Average Invested Capital for each individual calendar year during the
Performance Period (2013, 2014, and 2015) and the following formula (AB), where:
(2) “ Adjusted Total Operating Income ”
means, subject to Section 4(b)(v)(B) below, Delta'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) items present
in the line item “restructuring and other items” or such similar line item; (ii) mark-to-
market
adjustments for fuel hedges recorded in periods other than the settlement period; (iii) other special,
unusual, or nonrecurring items which are disclosed in publicly available filings with the SEC; and (iv)
implied interest in aircraft rent expense, and amortized pension expense related to gains/losses that
impact accumulated other comprehensive income (“ AOCI ”).
(3) “ Average Invested Capital”
means, subject to Section 4(b)(v)(B) below, Delta's total invested capital
determined based on the average of a trailing five calendar quarters measured from the last calendar
quarter preceding each calendar year of the Performance Period,
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using the following formula, (A+B),
where: