SkyWest Airlines 2003 Annual Report Download - page 49

The following table summarizes information about stock options outstanding at December 31, 2003:
Options Outstanding Options Exercisable
Range of
Exercise
Prices
Number
Outstanding
Weighted Average
Remaining
Contractual Life
Weighted Average
Exercise Price
Number
Exercisable
Weighted Average
Exercise Price
$3 to $15 1,889,098 7.4 years $ 11.36 772,183 $ 12.47
$16 to $21 696,000 6.3 years 20.13 696,000 20.13
$22 to $26 2,105,024 7.8 years 26.10 - -
$3 to $26 4,690,122 7.5 years 19.27 1,468,183 16.10
(6) Retirement Plan and Employee Stock Purchase Plan
Retirement Plan
The Company sponsors the SkyWest Airlines Employee’s Retirement Plan (the “Plan”). Employees who have completed 90 days
of service and are 18 years of age are eligible for participation in the Plan. Employees may elect to make contributions to the Plan.
The Company matches 100% of such contributions up to 2%, 4% or 6% of the individual participant’s compensation, based upon
length of service. Additionally, a discretionary contribution may be made by the Company. The Company’s combined
contributions to the Plan were $7,845,000, $7,466,000 and $6,128,000 for the years ended December 31, 2003, 2002 and 2001,
respectively.
Employee Stock Purchase Plan
In February 1996, the Company’s Board of Directors approved the SkyWest, Inc. 1995 Employee Stock Purchase Plan (“The
Stock Purchase Plan”). All employees who have completed 90 days of employment are eligible to participate, except employees
who own five percent or more of the Company’s common stock. The Stock Purchase Plan enables employees to purchase shares
of the Company’s common stock at a 15% discount, through payroll deductions. Employees can contribute two to 15% of their
base pay, not to exceed $21,250 each calendar year, for the purchase of shares. Shares are purchased semi-annually at the lower
of the beginning or the end of the period price. Employees can terminate their participation in the Stock Purchase Plan at anytime
upon written notice.
The following table summarizes purchases made under the Employee Stock Purchase Plan:
Year Ended December 31,
2003 2002 2001
umber of share purchased. 324,680 214,131 162,922
verage price of shares purchased $ 13.24 $ 20.76 $ 19.78
N
A
(7) Events of September 11, 2001
On September 11, 2001, the FAA grounded all flights to, from, and within the United States as a result of the terrorist attacks on
New York City, Washington D.C., and Pennsylvania. All airports were closed and did not reopen until September 13, 2001.
When flights were permitted to resume, passenger traffic and yields were significantly lower than prior to the attacks. United
reduced its flight schedule by approximately 20%. As a result, SkyWest began to reduce its EMB120s flown under the United
code. During the year ended December 31, 2001, the Company terminated certain EMB120 leases early and recorded a $3.4
million write-off of unamortized engine overhauls and an accrual of $1.2 million for the remaining lease payments related to
EMB120s parked as of December 31, 2001. To help compensate airlines for their losses, the U.S. government passed the Air
Transportation Safety and System Stabilization Act (the “Stabilization Act”). Under the Stabilization Act, funds were made
available to compensate air carriers for direct losses suffered as a result of any federal ground stop order and incremental losses
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