SkyWest Airlines 2011 Annual Report Download - page 98

Download and view the complete annual report

Please find page 98 of the 2011 SkyWest Airlines annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 168

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110
  • 111
  • 112
  • 113
  • 114
  • 115
  • 116
  • 117
  • 118
  • 119
  • 120
  • 121
  • 122
  • 123
  • 124
  • 125
  • 126
  • 127
  • 128
  • 129
  • 130
  • 131
  • 132
  • 133
  • 134
  • 135
  • 136
  • 137
  • 138
  • 139
  • 140
  • 141
  • 142
  • 143
  • 144
  • 145
  • 146
  • 147
  • 148
  • 149
  • 150
  • 151
  • 152
  • 153
  • 154
  • 155
  • 156
  • 157
  • 158
  • 159
  • 160
  • 161
  • 162
  • 163
  • 164
  • 165
  • 166
  • 167
  • 168

SKYWEST, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
DECEMBER 31, 2011
(11) 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, ExpressJet Delaware adopted the ExpressJet Airlines, Inc. 401(k)
Savings Plan (the ‘‘ExpressJet Retirement Plan’’). Substantially all of ExpressJet Delaware’s domestic
employees were covered by this plan at the time of the ExpressJet Combination. Effective January 1,
2009, the ExpressJet Retirement 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 Delaware’s total expense for the ExpressJet
Retirement Plan was $0.6 million. During the year ended December 31, 2011, ExpressJet Delaware
contributed $19.3 million to the ExpressJet Retirement Plan.
ExpressJet Delaware also provided medical bridge coverage for employees between the ages of 60
to 65, with at least ten 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, ExpressJet is no
longer required to provide medical bridge coverage to its pilots between the ages of 60 to 65. In 2008,
ExpressJet Delaware’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.
The following table summarizes purchases made under the 2010 and 1995 Employee Stock
Purchase Plans during the years ended December 31, 2011, 2010 and 2009:
Year Ended December 31,
2011 2010 2009
Number of shares purchased ................. 300,177 356,777 835,469
Average price of shares purchased ............. $ 14.56 $ 13.52 $ 10.26
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, 2011, 2010 and
2009.
94