Delta Airlines 2014 Annual Report Download - page 426

during the Performance Period between Delta and any regional carrier or between any member of the Industry
Composite Group and any regional carrier (a “ Regional Carrier Transaction ”),
Average Annual Operating Income
Margin and, as applicable, Return on Invested Capital for any such company involved in a Regional Carrier Transaction
will be calculated to remove the impact of any reclassifications of costs from (or to) such company’
s presentation of
contract carrier expense to (or from) the other expense line items on the statement of operations (determined based on the
regularly prepared and publicly available statements of operations of such company prepared in accordance with
GAAP).
(E) Vesting/Performance Measures—Excluding Return on Invested Capital.
The payment, if any, a Participant
will receive in connection with the vesting of the portion of the Performance Award attributable to Average Annual
Operating Income Margin and Customer Service Performance will be based on the following:
Any portion of a Performance Award attributable to Average Annual Operating Income Margin and Customer Service
Performance that does not vest at the end of the Performance Period will immediately lapse and become void. Payouts
based on the above performance measures will be straight-
line interpolated when actual performance results fall above
Threshold and below Target or above Target and below Maximum.
(F) Vesting/Performance Measures—Return on Invested Capital.
The payment, if any, a Participant will
receive in connection with the vesting of the portion of the Performance Award attributable to Return on Invested
Capital will be based on the following:
9
Average Annual Operating
Income Margin
+
Customer Service
Performance--Domestic
+
Customer Service
Performance--International
Performance
Measure
% of Target
Earned x
Weight
Performance
Measure
% of Target
Earned x
Weight
Performance
Measure
% of Target
Earned x
Weight
Maximum
20.0% above
Composite
Performance
200%
x 50% Maximum
+4.2% points
or higher
200%
x 15% Maximum
+7.5%
points or
higher
200%
x 10%
Target
Composite
Performance
100%
x 50%
Target
+2.5% points
100%
x 15%
Target
+3.5%
points
100%
x 10%
Threshold 20.0% below
Composite
Performance
50%
x 50% Threshold
+0% points
50%
x 15% Threshold
+2.0%
points
50%
x 10%