SkyWest Airlines 2014 Annual Report Download - page 102

SKYWEST, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
DECEMBER 31, 2014
(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 matching payment
amounts 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
$27.2 million, $26.7 million and $26.4 million for the years ended December 31, 2014, 2012 and 2011,
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. As of December 31, 2014 the Company did not have any participants under the medical
bridge 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 $25,000 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, 2014, 2013 and 2012:
Year Ended December 31,
2014 2013 2012
Number of shares purchased ................. 295,035 299,786 487,451
Average price of shares purchased ............. $ 12.72 $ 12.33 $ 8.35
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, 2014, 2013 and
2012.
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