SkyWest Airlines 2011 Annual Report Download - page 97

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SKYWEST, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
DECEMBER 31, 2011
(10) Capital Transactions (Continued)
The following table summarizes information about the Company’s stock options outstanding at
December 31, 2011:
Options Outstanding
Options Exercisable
Weighted Average
Number Remaining Weighted Average Number Weighted Average
Range of Exercise Prices Outstanding Contractual Life Exercise Price Exercisable Exercise Price
$10 to $15 ............. 1,148,921 3.9 years $14.01 282,391 $10.66
$16 to $21 ............. 1,698,224 2.8 years 17.70 1,698,224 17.70
$22 to $28 ............. 1,329,528 1.5 years 25.79 1,329,528 25.79
$10 to $28 ............. 4,176,673 2.7 years 19.26 3,310,143 20.35
Taxes
A portion of the Company’s granted options qualify as incentive stock options (ISO) for income
tax purposes. As such, a tax benefit is not recorded at the time the compensation cost related to the
options is recorded for book purposes due to the fact that an ISO does not ordinarily result in a tax
benefit unless there is a disqualifying disposition. Stock option grants of non-qualified options result in
the creation of a deferred tax asset, which is a temporary difference, until the time that the option is
exercised. Due to the treatment of incentive stock options for tax purposes, the Company’s effective tax
rate from year to year is subject to variability.
(11) Retirement Plans and Employee Stock Purchase Plans
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 $14.4 million,
$13.3 million and $11.8 million for the years ended December 31, 2011, 2010 and 2009, respectively.
Atlantic Southeast Retirement Plan
ExpressJet (formerly Atlantic Southeast) sponsors the Atlantic Southeast Airlines, Inc. Investment
Savings Plan (the ‘‘Atlantic Southeast Plan’’). Employees who have completed 90 days of service and
are 18 years of age are eligible for participation in the Atlantic Southeast Plan. Employees may elect to
make contributions to the Atlantic Southeast Plan however, ExpressJet 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, ExpressJet matches the
individual participant’s contributions from 20% to 75%, depending on the length of the participant’s
service. ExpressJet’s contribution to the Atlantic Southeast Plan was $5.8 million, $5.2 million and
$4.7 million for the years ended December 31, 2011, 2010 and 2009, respectively. Additionally,
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