Delta Airlines 2014 Annual Report Download - page 422

if this date is scheduled in the same month that the Committee approves such payouts, if any.
(B) Average Annual Operating Income Margin .
A = Operating Income for 2015, 2016, and 2017; and
B = Total Operating Revenue for 2015, 2016, and 2017.
(C) Customer Service Performance .
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(3) “ GAAP ”
means accounting principles generally accepted in the United States of America.
(4) “ Industry Composite Group ”
means Alaska Air Group, Inc., American Airlines Group, Inc., JetBlue
Airways Corporation, Southwest Airlines Co., and United Continental Holdings, Inc.
(5) “ Performance Period ”
means the period beginning on January 1, 2015 and ending on and including
December 31, 2017.
(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:
(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 statements of operations contained in reports on
Forms 10-Q and 10-K filed with the Securities and Exchange Commission (“ SEC ”)
prepared in
accordance with GAAP, but excluding: (i) items presented 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) expenses with respect to any annual broad-
based
employee profit sharing plan, program or similar 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; provided
, with respect to Delta, Total
Operating Revenue shall exclude the portion of revenue associated with refinery sales to third parties net
of exchange.
(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 2014 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