Originally Posted by
Vikz09
I understand the 10% upto 2.5 billion. I guess my general understanding was if we made above 2.5 billion that would trigger the 20% profit sharing on the whole thing. Your probably right! If I understand you correctly, your saying that if we make 2.7 billion we still only receive 10% up to 2.5 billion... Then the balance of 200 million would be paid at 20%?
Either way, I believe we could hit that figure this year when the dust settles.
Thanks Denny!
Yes, that is exactly how I think profit sharing on 2.7 billion would be paid.
I'm not an accountant but, in the contract, there are specific guidelines on what the company cannot "write off" so to speak. Profit sharing is based on PTIX. The definition of PTIX from the contract:
“Pre-tax income” (PTIX) means, for any calendar year, the Company’s consolidated pre-tax income calculated in accordance with Generally Accepted Accounting Principles in the United States 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 employee equity securities, c) gains or losses with respect to extraordinary, one-time or non-recurring events (including without limitation one-time transition or integration costs incurred in connection with the merger of the Company and Northwest Airlines Corporation during the two year period following the merger), and d) expense accrued with respect to the profit sharing plan.
Denny