SkyWest Airlines 2013 Annual Report Download - page 99

SKYWEST, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
DECEMBER 31, 2013
(9) Retirement Plans and Employee Stock Purchase Plans (Continued)
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 in the 2009 Stock
Purchase Plan, 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
five percent 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 five percent discount based on the end of the period price. Employees can terminate
their participation in the 2009 Stock Purchase Plan at any time upon written notice.
The following table summarizes purchases made under the 2009 Employee Stock Purchase Plans
during the years ended December 31, 2013, 2012 and 2011:
Year Ended December 31,
2013 2012 2011
Number of shares purchased ................. 299,786 487,451 300,177
Average price of shares purchased ............. $ 12.33 $ 8.35 $ 14.56
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, 2013, 2012 and
2011.
(10) Stock Repurchase
The Company’s Board of Directors has authorized the repurchase of up to 25,000,000 shares of
the Company’s common stock in the public market since 2007. During the years ended December 31,
2013 and 2012, the Company repurchased 0.8 million and 0.1 million shares of common stock for
approximately $11.7 million and $0.9 million, respectively at a weighted average price per share of
$14.40 and $15.32, respectively. Effective September 14, 2012, the Company’s Board of Directors
adopted the SkyWest, Inc. 2012 Stock Repurchase Plan (the ‘‘Stock Repurchase Plan’’), which provides
for the repurchase of up to 6,514,266 shares of common stock, from time to time in open market or
privately negotiated transactions, as contemplated by Rule 10b5-1 promulgated under the Exchange
Act, as amended. The Stock Repurchase Plan expires on October 15, 2014.
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