United sets another record in Q3
10-26-2014 | 06:25 AM
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10-27-2014 | 05:15 AM
#13
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I get that and it is a fair point. What I am really asking is can someone take our contractual profit sharing formula, and calculate some estimates for our return on the profits, assuming historical 4th qtr data since we don't have that data yet. I'm at a 3rd grade math level and can't compute it myself 
3-H-3 For profit-sharing based on the years 2014 and beyond, the Company profit sharing
plan shall be funded with ten percent (10%) of pre-tax profit up to a pre-tax margin of six and
nine-tenths percent (6.9%) plus twenty percent (20%) of pre-tax profit in excess of a pre-tax
margin of six and nine-tenths percent (6.9%).
3-H-4 Special and unusual items shall be excluded from pre-tax profit when making the
calculations in Sections 3-H-2 and 3-H-3.
plan shall be funded with ten percent (10%) of pre-tax profit up to a pre-tax margin of six and
nine-tenths percent (6.9%) plus twenty percent (20%) of pre-tax profit in excess of a pre-tax
margin of six and nine-tenths percent (6.9%).
3-H-4 Special and unusual items shall be excluded from pre-tax profit when making the
calculations in Sections 3-H-2 and 3-H-3.
I read that there is roughly $180 mil in the profit sharing pool after this quarter, and that is 12% more than last year at this time and we still have Q4 to go. So what you got last year plus 20% probably is in the ball park assuming your earnings relative to your peers has remained somewhat constant. Return on profit is nowhere near the 6.9% threshold. We do roughly 40 billion in revenue so 6.9% is 2.76 billion. We're not close.
Last edited by Sunvox; 10-27-2014 at 05:39 AM.
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