Q2 2016 had special charges of $434 mil which brings the number up to $1.3 bil.

We are ahead of last year.


http://i927.photobucket.com/albums/a...squl0mr2t.jpeg

Good catch, thanks.

How much of this years is over the 6.9% margin that triggers the 20%? That's where we make our real money.

I'm going for $15%. I signed a check for a pool and I need that much to cover it. If not, I have a Cousin who might have to make a pickup in his RV so we can renogitate our profit sharing bonus!

New LOA is out. PS has been traded for a year subscription to the Jelly of the Month Club.

Not sure, but we are slightly ahead on profit and expectations for Q4 are for more of the same. In addition, revenue is down a tiny bit so the percentages should be ever so slightly higher than last year. My personal guess is that this year's profit sharing will be ever so slightly higher than last year's percentage. If I remember correctly, last year's PS was 13% so I'll take a SWAG here and say PS payout in 2017 will be 14% of your 2016 W2 wages.

Of course, as always, should any member of your team be caught or killed, we will disavow any knowledge of said SWAG, and furthermore one should never put a down payment on a new boat based on the SWAG of some internet kook :D

Not quite true.

We are accounting for taxes but not actually paying them. No cash out the door. And we still have NOL's on the book in the several billion$$ range.


From the October investor update:

http://ir.united.com/~/media/Files/U...ate-101116.pdf

Quote:
Originally Posted by Boeing Aviator View Post
Actually first three quarters YTD on a Pre Tax basis we are I believe 100M ahead. Now on a Net profit basis we are way down but that's because all of our loss write offs have been used up and we are paying income tax which we haven't in some time. Hopefully we will continue to track on course on the 4th quarter.

Remember per the UPA our profits sharing is calculated on a pre tax earnings and excludes any special items.
Not quite true.

We are accounting for taxes but not actually paying them. No cash out the door. And we still have NOL's on the book in the several billion$$ range.


From the October investor update:

http://ir.united.com/~/media/Files/U...ate-101116.pdf

Quote:
Taxes: The Company expects a tax rate of approximately 36% for the third quarter of 2016. However, the Company expects that there will be no material cash taxes due to United’s net operating loss carryforwards (NOLs), which were approximately $8 billion as of year- end 2015. These NOLs are projected to offset (or minimize) cash income taxes for several years.


So he does this affect the pilot profit sharing pool? Good, bad or indifferent? Sorry but was a engineering major.

The gift that keeps on giving!

http://i927.photobucket.com/albums/a...squl0mr2t.jpeg[/QUOTE]


I don't think it matters for profit sharing caluations whether it's actual cash or not. For purposes of our profit sharing calculations per the UPA it's based on pretax income excluding any special items.

So the only relevance to us on the income statement is the line item above stating - income before income taxes. Not the Net income two lines below. Then adding in any special items. In this example special charges (note 10) 434M is added to the 931M income before income taxes figure. So in this example 1,365B is the number used for calculating pilot profit sharing for the 2nd Quarter 2016.

I've gone back and looked at pretax numbers plus added back any special items for the first three quarters of both 2016 & 2015 and I stand by my original statement. Through the 3rd quarter for profit sharing calculations we are 100M head this year vs last year.