SkyWest Airlines 2007 Annual Report Download - page 59

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The following table summarizes information about stock options outstanding at December 31, 2007:
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
$10 to $15 .......................................................... 599,412 3.4 years $11.72 599,412 $11.72
$16 to $21 .......................................................... 2,401,415 6.2 years 18.02 895,640 19.56
$22 to $28 .......................................................... 1,681,088 5.2 years 25.81 1,023,633 26.10
$10 to $28 .......................................................... 4,681,915 5.5 years 20.01 2,518,685 20.35
(6) Retirement Plan and Employee Stock Purchase Plan
SkyWest Retirement Plan
The Company sponsors the SkyWest, Inc. Employees’ Retirement Plan (the “SkyWest Plan”). Employees who have
completed 90 days of service and are at least 18 years of age are eligible for participation in the SkyWest Plan. Employees
may elect to make contributions to the SkyWest 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 SkyWest Plan were $9.0 million, $7.2 million and
$10.5 million for the years ended December 31, 2007, 2006 and 2005, respectively.
ASA Retirement Plan
ASA sponsors the Atlantic Southeast Airlines, Inc. Investment Savings Plan (“ASA Plan”). Employees who have
completed 90 days of service and are 18 years of age are eligible for participation in the ASA Plan. Employees may elect to
make contributions to the ASA Plan however, ASA limits the amount of company match at 6% of each participant’ s total
compensation, except for those with 10 or more years of service whose company match is limited to 8% of total
compensation. Additionally, ASA matches the individual participant’ s contributions from 20% to 75%, depending on the
length of the participant’ s service. ASA’ s contribution to the ASA Plan was $4.0 million, $4.1 million and $0 for the years
ended December 31, 2007, 2006 and 2005, respectively. Additionally, participants are 100% vested in their elective deferrals
and rollover amounts and from 10% to 100% vested in company matching contributions based on length of service.
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 up 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 a 15% discount based on 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,
2007 2006 2005
Number of share purchased ............................................................................................ 454,162 161,369 175,480
Average price of shares purchased ................................................................................. $20.65 $21.08 $15.45
The Stock Purchase Plan is a compensatory plan under SFAS 123(R) because the shares are purchased semi-
annually at a 15% discount based on the lower of the beginning or the end of the period price. During the years ended
December 31, 2007 and 2006, the Company recorded compensation expense of $2.8 and $1.8 million related to Stock
Purchase Plan, respectively. The fair value of the shares purchased under the Stock Purchase Plan was determined using the
Black-Scholes option pricing model with the following assumptions: