SkyWest Airlines 2012 Annual Report Download - page 103

SKYWEST, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
DECEMBER 31, 2012
(10) Retirement Plans and Employee Stock Purchase Plans (Continued)
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.
ExpressJet’s contribution to the Atlantic Southeast and the ExpressJet Retirement Plans was
$26.4 million, $25.1 million and $5.8 million for the years ended December 31, 2012, 2011 and 2010,
respectively.
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 2009 Employee Stock Purchase Plans
during the years ended December 31, 2012, 2011 and 2010:
Year Ended December 31,
2012 2011 2010
Number of shares purchased ................. 487,451 300,177 356,777
Average price of shares purchased ............. $ 8.35 $ 14.56 $ 13.52
The 2009 Stock Purchase Plan is a non-compensatory plan under the accounting guidance.
Therefore, no compensation expense was recorded for the years ended December 31, 2012, 2011 and
2010.
99