2014 Profit Sharing?
12-19-2014 | 08:29 AM
#31
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Joined: Dec 2013
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From: A320 FO
Nope... Not exactly, and not in a good way.
DAL:
10% of the 0-2.5B of PTIX
20% of all PTIX above 2.5B
Pensionable (15% of that also adds to their 401k)
Contract tidbits: 3-I(Table) Accrue annually; award to be paid within 30 calendar days after the date on which the Company’s annual audited consolidated financial statements are released.The Association will have the right to review the methodology and calculation of awards
prior to such awards.
3-1-A-10 “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.
UAL:
10% of the 0-6.9% PTIX margin
20% of the 6.9-up PTIX margin
Not Pensionable
Contract tidbits: 3-H-1 Pilots shall participate in the Company profit sharing plan. 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.
What happens as the enterprise gets bigger? The 0-6.9% PTIX margin number grows. The total dollars of PTIX will get divided differently as the company gets larger so the 10% threshold grows, and eats into the portion paying 20%.
The devil is definitely in the details.
DAL:
10% of the 0-2.5B of PTIX
20% of all PTIX above 2.5B
Pensionable (15% of that also adds to their 401k)
Contract tidbits: 3-I(Table) Accrue annually; award to be paid within 30 calendar days after the date on which the Company’s annual audited consolidated financial statements are released.The Association will have the right to review the methodology and calculation of awards
prior to such awards.
3-1-A-10 “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.
UAL:
10% of the 0-6.9% PTIX margin
20% of the 6.9-up PTIX margin
Not Pensionable
Contract tidbits: 3-H-1 Pilots shall participate in the Company profit sharing plan. 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.
What happens as the enterprise gets bigger? The 0-6.9% PTIX margin number grows. The total dollars of PTIX will get divided differently as the company gets larger so the 10% threshold grows, and eats into the portion paying 20%.
The devil is definitely in the details.
12-19-2014 | 12:16 PM
#32
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Joined: Feb 2009
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From: right for a long, long time
Hey Shiznit, thanks a million for that Analysis. You seem to be some kind of financial guy so when UAL reports their profit for the year 2014, sometime in the 3rd week of January, would you mind crunching the numbers. I'm at a 3rd grade math level and have no clue how to do it.
It's been postulated that the 5% in Oct. was to try and rile up the the American employees during merger contract talks, and to help stave off an FA union drive at DAL. Nobody knows for sure, but let's be real, it probably wasn't purely "out of the goodness of their hearts" by management to pay it early.
12-19-2014 | 06:30 PM
#33
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Last edited by APC225; 12-19-2014 at 07:13 PM.
12-20-2014 | 01:57 AM
#34
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From: right for a long, long time
In 2013, DAL got 8.26%, which was a month's pay, or 30 days, 14 work days
The UAL check from last year was more like 12+ calendar days and 7 work days once you had to take 16% out for a 401k contribution to equate to theirs.
01-05-2015 | 07:23 AM
#37
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From: Gets weekends off
01-15-2015 | 08:45 AM
#39
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Joined: Jun 2010
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From: 747 Captain, retired
So in UAL's latest investor report the following was said they are estimating profit sharing to be paid out for 2014 is $111 Million. So my question is how does that translate to money in OUR pockets
01-20-2015 | 05:34 PM
#40
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Joined: Jul 2008
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I'm guessing about 2 percent based on Delta's 1.1 billion in profit sharing paying 16 percent, but what do I know?
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