Delta Airlines 2013 Annual Report Download - page 119

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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.
A = Adjusted Total Operating Income; and
B = Average Invested Capital.
A = Adjusted Book Value of Equity; and
B = Adjusted Net Debt.
__________________________________________________________
4
For example, for determining Average Invested Capital for the 2014 calendar year, the trailing five calendar quarter average will be measured based on the
quarter ending December 31, 2013 and each of the subsequent four quarters of 2014.
6
(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 (2014, 2015, and 2016) 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,
4
using the following
formula, (A+B), where:
(4) “Adjusted Book Value of Equity”
for Delta shall be calculated quarterly based on its regularly
prepared internal financial statements (i) with an initial starting value for the quarter ending
December 31, 2013 (the “ Initial Value ”)
equal to the book value of equity determined in
accordance with GAAP as of December 31, 2013, but excluding the