SkyWest Airlines 2007 Annual Report Download - page 60

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2007 2006
Expected annual dividend rate................................................................................................................... 0.47% 0.70%
Risk-free interest rate................................................................................................................................. 5.07% 4.80%
Average expected life (months)................................................................................................................. 6 4
Expected volatility of common stock ........................................................................................................ 0.272 0.294
(7) Stock Repurchase
During 2007, the Company announced that is has been authorized by its Board of Directors to repurchase up to
10 million shares of common stock in the public. During the year ended December 31, 2007, the Company repurchased
5 million shares of common stock for approximately $126.0 million at a weighted average price per share of $25.20.
(8) Related-Party Transactions
The Company’ s President, Chairman of the Board and Chief Executive Officer, serves on the Board of Directors of
Zion’ s Bancorporation (“Zion’ s”). The Company maintains a line of credit (see Note 2) and certain bank accounts with
Zion’ s. Zion’ s is an equity participant in leveraged leases on three CRJ200, two CRJ700 and six Brasilia turboprop aircraft
operated by the Company. Zion’ s also serves as the Company’ s transfer agent. The Company’ s cash balance in the accounts
held at Zion’ s as of December 31, 2007 and 2006 was $5,318,000 and $10,974,000, respectively.
ITEM 9. CHANGES IN AND DISAGREEMENTS ON ACCOUNTING AND FINANCIAL DISCLOSURE
None.
ITEM 9A. CONTROLS AND PROCEDURES
Disclosure Controls and Procedures
Under the supervision and with the participation of our management, including our principal executive officer and
principal financial officer, we conducted an evaluation of our disclosure controls and procedures, as such term is defined
under Rule 13a-15(e) promulgated under the Securities Exchange Act of 1934, as amended (the “Exchange Act”), within
90 days of the filing date of this Report. Based on this evaluation, our principal executive officer and principal financial
officer concluded that our disclosure controls and procedures are effective in alerting them on a timely basis to material
information required to be included in our reports filed or submitted under the Exchange Act. There have been no other
significant changes (including corrective actions with regard to material weaknesses) in our internal controls or in other
factors that could significantly affect these controls subsequent to the date of the evaluation referenced above.
Report of Management on Internal Control over Financial Reporting
Our management is responsible for establishing and maintaining adequate internal control over financial reporting as
defined in Rule 13a-15(f) under the Exchange Act. Our internal control over financial reporting is a process designed to
provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for
external purposes in accordance with accounting principles generally accepted in the United States of America. Internal
control over financial reporting includes those written policies and procedures that:
• pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and
dispositions of our assets;
• provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial
statements in accordance with accounting principles generally accepted in the United States of America;
• provide reasonable assurance that our receipts and expenditures are being made only in accordance with
authorization of our management; and
• provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use or
disposition of assets that could have a material effect on our consolidated financial statements.