Delta Airlines 2014 Annual Report Download - page 423

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.
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For example, for determining Average Invested Capital for the 2015 calendar year, the trailing five calendar quarter average will be measured based on the quarter
ending December 31, 2014 and each of the subsequent four quarters of 2015.
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(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 (2015, 2016, and 2017) and the following formula (A /
B),
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:
(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, 2014 (the “ Initial Value ”)
equal to the book value of equity
determined in accordance with GAAP as of December 31, 2014, but excluding the
impact of gains or losses