Delta Airlines 2015 Annual Report Download - page 177

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
(a)FinancialPerformance Measures.The FinancialPerformance measuresfor 2016 are based onDelta’s Pre-TaxIncome, as
definedbelow. The followingtabledescribes theperformanceranges andawardpayout levels for2016Financial Performance,subjectto
Section4(c)above:
Threshold Target Maximum
%ofTargetFinancialPerformanceMeasure
Paid 50% 100% 200%
Required2016Pre-Tax
Income
$6,220Million $7,454Million $8,078Million
Payoutswillbestraight-line interpolated whenPre-Tax Incomeresults fallabove Thresholdand belowTarget orabove Targetand below
Maximum.
“Pre-TaxIncome”willbetheamountofPre-TaxIncome,ifany,determinedundertheProfitSharingProgramfor2016.1
(b)OperationalPerformanceMeasures.TheOperationalPerformancemeasuresfor2016arebasedonbothDeltaandDeltaConnection
operationalperformance,with(i)Delta’soperationalperformanceaccountingfor75%ofthemeasureand(ii)DeltaConnectionperformance
accounting for 25% of the measure. Delta’s Operational Performance is based on the number of times during 2016 that Delta meets or
exceedsitsmonthlygoalsunderthebroad-basedemployeesharedrewardsprogram(the“SharedRewardsProgram”).DeltaConnection’s
Operational Performance is based on the number of times during 2016 that the Delta Connection carriers meet or exceed their monthly
operationalgoalsfor(x)completionfactorand(y)on-timeperformance(the“DeltaConnectionGoals”).TheDeltaConnectionGoalsand
the methodology for determining whether these goals are met are described in Exhibit A hereto. The following table describes the
performancerangesandawardpayoutlevelsfor2016OperationalPerformance,subjecttoSection4(c)above:
BelowThreshold Threshold Target Maximum
SharedRewardsProgram
%ofTargetPayoutforthisPerformanceMeasure(75%Weighting) 0% 37.50% 75% 150%
NumberofmonthlySharedRewardsProgramgoalsactuallymet
during2016 15orless 16 21 26ormore
DeltaConnectionGoals
%ofTargetPayoutforthisPerformanceMeasure(25%Weighting) 0% 12.50% 25% 50%
NumberofDeltaConnectionGoalsactuallymetduring2016 8orless 9 14 19ormore
PayoutsbasedontheSharedRewardsProgramandDeltaConnectionGoalswillbestraight-lineinterpolatedwhenactualperformanceresults
fallaboveThresholdandbelowTargetoraboveTargetandbelowMaximum.
1TheProfitSharingProgramfor2016defines“Pre-TaxIncome”asfollows:foranycalendaryear,theCompany’sconsolidatedpre-taxincomecalculatedinaccordancewithGenerally
AcceptedAccountingPrinciplesintheUnitedStates(“GAAP”)andasreportedintheCompany’spublicsecuritiesfilings,butexcluding:(a)allassetwritedownsrelatedtolongterm
assets;(b)gainsorlosseswithrespecttospecial,unusual,ornonrecurringitems;and(c)expenseaccruedwithrespecttoanyemployeeprofitsharingplan,programorsimilararrangement,
including,withoutlimitation,theProfitSharingProgramandtheDeltaAirLines,Inc.AnnualProfitSharingPlan.
3
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