Delta Airlines 2015 Annual Report Download - page 164

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(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;and(iii)otherspecial,unusual,ornonrecurringitemswhicharedisclosedinpubliclyavailablefilings
withtheSEC.
(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.
(C)CustomerServicePerformance.
(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2015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 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.
(D) ReturnonInvestedCapital.
(1)The “ Return on Invested Capital ” for Delta shall be calculated by using Delta’s Average Adjusted Total
Operating Income and Average Invested Capital for the applicable periods and the
followingformula(A/B),where:
A=AverageAdjustedTotalOperatingIncomefor2016,2017and2018;and
B=AverageInvestedCapitalfor2016,2017and2018.
(2)“ Average Adjusted Total Operating Income ” means, subject to Section 4(b)(v)(B) below, Delta’s average
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thirteencalendarquarters
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