Delta Airlines 2015 Annual Report Download - page 164
Download and view the complete annual report
Please find page 164 of the 2015 Delta Airlines annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.(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
Forms10-Qand10-KfiledwiththeSecuritiesandExchangeCommission(“SEC”)preparedinaccordance
withGAAP,butexcluding:(i)itemspresentedinthelineitem“restructuringandotheritems”orsuchsimilar
line item; (ii) mark-to-market adjustments for fuel hedges recorded in periods other than the settlement
period;and(iii)otherspecial,unusual,ornonrecurringitemswhicharedisclosedinpubliclyavailablefilings
withtheSEC.
(3) “ Total Operating Revenue ” means, subject to Section 4(b)(v)(B) below, the subject company’s total
operatingrevenuefortheapplicableperiodsbasedonitsregularlypreparedandpubliclyavailablestatements
ofoperationspreparedinaccordancewithGAAP;provided,withrespecttoDelta,TotalOperatingRevenue
shallexcludetheportionofrevenueassociatedwithrefinerysalestothirdpartiesnetofexchange.
(C)CustomerServicePerformance.
(1) The “ Customer Service Performance ” for Delta shall be measured based on the percentage point
improvementinDelta’saveragemonthlyNetPromoterScore(“NPS”)fromthe2015calendaryeartothe
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’sNPSisdescribedinadocumenttitled,“‘NetPromoter’:MeasuringCustomerSatisfactionatDelta,”
which was previously reviewed by the Committee. Company management will periodically report to the
Company’sBoardofDirectorsregardingDelta’sNPS.
(D) ReturnonInvestedCapital.
(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
followingformula(A/B),where:
A=AverageAdjustedTotalOperatingIncomefor2016,2017and2018;and
B=AverageInvestedCapitalfor2016,2017and2018.
(2)“ Average Adjusted Total Operating Income ” means, subject to Section 4(b)(v)(B) below, Delta’s average
consolidatedoperating incomeforthe applicableperiodsbased onitsregularly prepared
and publicly available statements of operations prepared in accordance with GAAP, but
excluding(i)itemspresentinthelineitem“restructuringandotheritems”orsuchsimilar
lineitem;(ii)mark-to-marketadjustmentsfor fuelhedges recorded inperiods 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
accumulatedothercomprehensiveincome(“AOCI”).
(3)“ Average Invested Capital” means, subject to Section 4(b)(v)(B) below, Delta’s total invested capital
determinedbasedontheaverageofthirteencalendarquarters
5