Originally Posted by
MTSUFlyer
Thanks for the info. If anyone knows how the percentage is calculated from pre-tax income, let me know. I know it involves 10% of profit up to $2.5 bil then 20% of any profit over $2.5 bil. I think all that goes back to the employees, but not sure how that works out to the actual percentages above.
The percentage is simply a function of how much is set aside divided by total employee wages. If all employees at Delta made 10 billion (eligible earnings) and they set aside 1 billion using your above formula profit sharing would work out to be 10 percent. Essentially, they set aside the amount based on PTIX ( a contractual definition) and then everyone gets a pro rata share.