United Continental Holdings’ (the “Company”) Pre-Tax Earnings for 2011 exceeded the threshold of $10 million necessary for a profit sharing distribution. Therefore, the Board of Directors has approved an award pool of 15% of the Company’s Pre-Tax Earnings for allocation among all eligible United employees based upon each employee’s pro rata share of Considered Earnings for all such employees in accordance with the profit sharing plan.
Each work group’s share of the $245 million profit sharing pool is the aggregate Considered Earnings of that work group’s eligible employees divided by all eligible employees’ Considered Earnings. The term Considered Earnings, which excludes certain types of payment such as reimbursement for business expenses, is defined in the same manner for all employee groups. The total Considered Earnings for all United employees during 2011 was $4.913 billion. The Considered Earnings for all eligible subsidiary Continental employees represented by the AFA during 2011 was $433 million. Accordingly, subsidiary Continental AFA represented employees’ share of the $245 million profit sharing pool is $22 million.
Eligible co-workers will receive a 2011 Profit Sharing Award that is equal to approximately 4.983% of their eligible 2011 Considered Earnings.