SkyWest Airlines 2010 Annual Report Download - page 103

SKYWEST, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
DECEMBER 31, 2010
(10) Retirement Plans and Employee Stock Purchase Plans (Continued)
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.
ExpressJet Retirement Plans
Effective December 31, 2002, the ExpressJet Airlines, Inc. 401(k) Savings Plan (the ‘‘ExpressJet
Plan’’) was adopted. Substantially all of ExpressJet’s domestic employees are covered by this plan.
Effective January 1, 2009, the ExpressJet Plan was amended such that certain matches have been
reduced or eliminated depending on the terms of the collective bargaining unit or work group, as
applicable. From November 12, 2010 through December 31, 2010, ExpressJet’s total expense for the
ExpressJet Plan was $0.6 million.
ExpressJet also provides medical bridge coverage for employees between the ages of 60 to 65, with
at least 10 years of service who have retired from the Company. In December 2007, the Fair Treatment
for Experienced Pilots Act (H.R. 4343) was enacted. This law increased the mandatory retirement age
of commercial pilots from 60 to 65. As a result of this legislation, the Company is no longer required
to provide medical bridge coverage to our pilots between the ages of 60 to 65. In 2008, ExpressJet’s
practice of providing medical bridge coverage for non-pilot employees was frozen, and does not permit
non-pilot employees retiring on or after January 1, 2009 to participate in such coverage.
Employee Stock Purchase Plans
In May 2009, the Company’s Board of Directors approved the SkyWest, Inc. 2009 Employee Stock
Purchase Plan (the ‘‘2009 Stock Purchase Plan’’). All employees who have completed 90 days of
employment with the Company or one of its subsidiaries are eligible to participate, except employees
who own five percent or more of the Company’s common stock. The 2009 Stock Purchase Plan enables
employees to purchase shares of the Company’s common stock at a 5% 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 5% discount based
on the end of the period price. Employees can terminate their participation in the 2009 Stock Purchase
Plan at anytime upon written notice.
In February 1996, the Company’s Board of Directors approved the SkyWest, Inc. 1995 Employee
Stock Purchase Plan (the ‘‘1995 Stock Purchase Plan’’). The 1995 Stock Purchase Plan enabled
employees to purchase shares of the Company’s common stock at a 15% discount, through payroll
deductions. There are no additional shares of common stock available for issuance under this plan.
The following table summarizes purchases made under the 2009 and 1995 Employee Stock
Purchase Plans during the years ended December 31, 2010, 2009 and 2008:
Year Ended December 31,
2010 2009 2008
Number of shares purchased .................. 356,777 835,469 807,797
Average price of shares purchased ............. 13.52 $ 10.26 $ 13.90
The 2009 Stock Purchase Plan is a non-compensatory plan under the accounting guidance.
Therefore, no compensation expense was recorded for the year ended December 31, 2010 and 2009.
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