Here are a few category breakdowns from the 10-Q


Refinery. This represents refinery sales to third parties. See Note 9, "Segments," for more information on revenue recognition within our refinery segment.

Loyalty Program. Loyalty program revenue relates to brand usage by third parties and other performance obligations embedded in miles sold, including redemption of miles for non-air travel and other awards. These revenues are mainly derived from the total cash sales from marketing agreements, discussed above.

Ancillary Businesses. Ancillary businesses revenue represents revenues from aircraft maintenance services we provide to third parties and our vacation wholesale operations.

Miscellaneous. Miscellaneous is primarily composed of revenues related to Delta Sky Club lounge access, including access provided to certain American Express cardholders, and codeshare agreements.

Short-Term Investments. The fair values of our short-term investments are based on a market approach using industry standard valuation techniques that incorporate observable inputs such as quoted market prices, interest rates, benchmark curves, credit ratings of the security and other observable information.
As of September 30, 2023, the estimated fair value of our short-term investments was$2.2 billion. Of these investments, $2.1 billion are expected to mature in one year or less, with the remainder maturing by the first quarter of 2026. Investments with maturities beyond one year when purchased are classified as short-term investments if they are expected to be available to support our short-term liquidity needs.

Long-Term Investments and Related. Our long-term investments measured at fair value primarily consist of equity investments, which are valued based on market prices or other observable transactions and inputs, and are recorded in equity investments on our balance sheet. Our equity investments in private companies are classified as Level 3 in the fair value hierarchy as their equity is not traded on a public exchange and our valuations incorporate certain unobservable inputs, including non-public equity issuances. As of September 30, 2023 our equity investment in Wheels Up Experience Inc. ("Wheels Up") is classified as Level 3 in the fair value hierarchy. In prior periods, this investment was classified as Level 1. We determined the quoted price of its publicly-traded shares does not represent fair value after the closing of Wheels Up's $500 million credit facility on September 20, 2023. In addition to the quoted price, the valuation of our equity investment in Wheels Up considered certain unobservable inputs, including Wheels Up's financial projections, using both market and income approach valuation techniques. Fair value measurement using unobservable inputs is inherently uncertain, and a change in significant inputs could result in different fair values. See Note 4, "Investments," for further information on the transaction with Wheels Up and our other equity investments.


Fuel Hedge Contracts. Our derivative contracts to hedge the financial risk from changing fuel prices are primarily related to inventory at our wholly-owned subsidiary, Monroe Energy, LLC ("Monroe"). Our fuel hedge portfolio may consist of a combination of options, swaps or futures contracts, most of which have a duration of less than three months. Option and swap contracts are valued under income approaches using option pricing models and discounted cash flow models, respectively, based on data either readily observable in public markets, derived from public markets or provided by counterparties who regularly trade in public markets. Futures contracts and options on futures contracts are traded on a public exchange and valued based on quoted market prices. We recognized losses of $140 million and $96 million on our fuel hedge contracts in aircraft fuel and related taxes on our Condensed Consolidated Statements of Operations and Comprehensive Income ("income statement") for the three and nine months ended September 30, 2023, respectively, compared to gains of $139 million and losses of $339 million for the three and nine months ended September 30, 2022, respectively. The lossesrecognized during the first nine months of 2023 were composed of $59 million of mark-to-market gains and $155 million of settlement losses on contracts. Gains and losses on settled contracts are reflected within Monroe's operating results. See Note 9, "Segments," for further information on our Monroe refinery segment.

Fair Value Investments. Changes in the valuation of investments accounted for at fair value are recorded in gain/(loss) on investments, net in our income statement within non-operating expense and are driven by changes in stock prices, foreign currency fluctuations and other valuation techniques for investments in certain companies, particularly those without publicly-traded shares.

Equity Method Investments. We record our share of our equity method investees' financial results in our income statement as described in the table below. -page 11-


For those interested, aircraft orders and commitments are on -page 14-


https://www.sec.gov/ix?doc=/Archives...fb2c5518593_31

 

Total Employee Payout Calculation

Profit sharing begins at the first dollar of PTIX. The total amount of profit sharing paid out to all pilots is based upon the total PTIX for the year. The total pilot profit sharing is paid at 10 percent of the first $2.5 billion of PTIX for the year and 20 percent of any PTIX for the year over $2.5 billion.

Source: ALPA Contract Awareness Bulletin 20-01

Individual Pilot Payout Calculation and Award

To determine your individual profit sharing payout, you need to know your annual compensation in the year in which the PTIX was earned, the total annual compensation for that year for all eligible employees, and the total profit sharing amount. You then divide your eligible annual compensation by the eligible annual compensation of all profit sharing participants and then multiply that amount by the total profit sharing amount available. The resultis your individual profit sharing amount. Every pilot will receive a pro rata amount of the total profit sharing based on his or her annual compensation in theyear PTIX was earned.

Here’s an example:
Assume Delta earned a PTIX of $1.5 billion. Delta would provide eligible employees a total profit sharing of $150 million ($1.5 B x 10% = $150 million). Also, assume that the total annual compensation for all eligible employees was $3.75 billion and that the pilot’s individual annual compensation was $100,000. To determine the percentage of profit sharing for this pilot, divide the pilot’s individual annual compensation by the total annual compensation ($100,000 / $3.75B = .00002666667). To determine the pilot’s personal profit sharing payout. Multiply this number by the total profit sharing amount (.00002666667 x $150 million = $4,000).

 

It's the same equation expressed in different ways.

From the 10-Q:

Profit Sharing. Profit sharing increased $180 million compared to the September 2022 quarter due to higher projected profitability in 2023. Our profit sharing program pays 10% to all eligible employees for the first $2.5 billion of annual pre-tax profit and 20% of annual pre-tax profit above $2.5 billion, as defined by the terms of the program. In determining the amount of profit sharing, the program defines profit as pre-tax profit adjusted for profit sharing and certain other items.

Profit Sharing. Our broad-based employee profit sharing program provides that for each year in which we have an annual pre-tax profit, as defined by the terms of the program, we will pay a specified portion of that profit to employees. In determining the amount of profit sharing, the program defines profit as pre-tax profit adjusted for profit sharing and certain other items. During the nine months ended September 30, 2023, we accrued $1.1 billion in profit sharing expense based on the year-to-date performance and current expectations for 2023 profit.

We paid $563 million in profit sharing in February 2023 related to our 2022 pre-tax profit in recognition of our employees' contributions toward achieving the year's financial results.

 

I don’t think anyone’s counting chickens before they hatch. I think people are trying to figure out where they’re at this year on profit sharing because there’s nothing better to do right now. Maybe bored on a layover, or killing time in an airport?

The stage is set for a robust 2023 finish. We have half of October, followed by two holiday months where I know for a fact that we are absolutely fleecing people because I just bought tickets for one of the holidays.

At any rate, it’s been a good year and with a strong finish we will have a nice little cash stash on 2/14/24. In the meantime we can hope for the best in the Middle East, and hope that this international day of jihad tomorrow Friday the 13th doesn’t yield anything catastrophic. And we can all live our lives and control what we can control. For the next 75 ish days we can all just shut up and row and hope that there’s not some “interpretation” on how profit sharing is paid out by mid level manager BP.

 

Yep, I’m with you on this. Hoping to finish the year strong and that peace prevails.

 

January 2020 was my 10th anniversary, gave a little speech to my workgroup joking about how much profit we made soon as I started working here, and here's to another 10 years of it. April I was one of maybe three lead AMTs in the hangars and turning a wrench because we only had maybe a dozen still working. That...was a bit shocking.

But then again, my whole plan to be a pilot got derailed back in 2001 during my freshman year at UND for the aeronautics program. So I learned early on to always be improving my fighting position.

That said, I'm looking forward to this year's profit sharing; while it won't buy the Cardinal new avionics, it'll help a ton while I'm on Propel leave...granted that I survive the PARB that I'm still waiting to hear back from.

 

Any idea why the Virgin stake isn’t listed on page 11?

 

the other employee groups' wages are not a variable in the pilots' profit sharing formula.

 

how are they not. Profit sharing pct is the pool divided by total payroll of all eligible employees. If it was just pilot payroll we would get a higher percentage than the non cons but every eligible employees gets the same percentage of their eligible compensation.

 

My understanding is that other employees end up with the same percentage based as we do based of OUR negotiated PS terms. What we get is what is exactly what our PWA puts aside for our group, and our group alone. If I’m mistaken in this please someone correct me.