Delta Airlines 2015 Annual Report Download - page 163

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Thepayout,ifany,ofaPerformanceAwardwillbemade (A) in Shares, calculatedbasedontheConversion Formula (asdefined
below), to each Participant who is employed by the Company as an executive vice president or more senior officer (“ Executive
OfficerParticipant”)atthetimeofsuchpayoutand(B)incashinallothercircumstances.
(iv)Definitions.
(A)InGeneral.
(1) “CompositePerformance”means,forpurposesofdeterminingthetotalAverageAnnualOperatingIncome
Margin of the Industry Composite Group, the result obtained by treating the members of the Industry
CompositeGroupasiftheywereonecombinedentity.
(2) The“ConversionFormula”willapplytoconvertfromcashtoSharesthepayout,ifany,ofaPerformance
AwardtoapersonwhoisanExecutiveOfficerParticipantatthetimeofsuchpayout.First,thecashamount
ofthepayoutiscalculatedinthesamemannerasifthepayoutisbeingmadeincash.Next,thecashamount
isconvertedintoanumberofSharesbasedonthefollowingformula:A÷B,where:
A=theamountofthepayoutforthePerformanceAwardifitispaidincash;and
B=theclosingpriceofaShareontheNewYorkStockExchangeonthelaterof(1)thedatethatthe
Committee approves the payouts, if any, of the Performance Awards to the Executive Officer Participants
followingtheCommittee’sdeterminationoftheachievementofthepayoutcriteriadescribedinSection4(b)
(iii)and(2)thethirdbusinessdayfollowingthedateonwhichtheCompanypubliclyannouncesitsannual
financialresultsifthisdateisscheduledinthesamemonththattheCommitteeapprovessuchpayouts,ifany.
(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, 2016 and ending on and including
December31,2018.
(B)AverageAnnualOperatingIncomeMargin.
(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:
A=OperatingIncomefor2016,2017,and2018;and
B=TotalOperatingRevenuefor2016,2017,and2018.
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