Alaska Airlines and Horizon Air 2010 Annual Report Download - page 89

executive would have received under our qualified defined contribution plan had the executive continued to
contribute the maximum allowable amount during the employment period, and (d) in the case of Mr. Minicucci
and Mr. Pedersen, the contribution the executive would have received under our nonqualified defined
contribution plan had the executive continued to participate in the plan during the employment period.
(3) Represents the estimated cost of (a) 18 months of premiums under our medical, dental and vision programs,
and (b) three years of continued participation in life, disability, accidental death insurance and other fringe
benefit programs.
(4) Mr. Ayer is entitled to lifetime air travel benefits under all termination scenarios. In this column, we show the
present value of this benefit, calculated using a discount rate and mortality table that are the same as those
used for our pension plan accounting under ASC 715-20 as of December 31, 2010, described above in the
section titled “2010 Pension Benefits.” Other assumptions include that the lifetime average annual usage is
equal to actual average annual usage amounts in 2008 through 2010, and that the annual value of the benefit
is equal to the annual incremental cost to the Company, which will be the same as the average of the
incremental cost incurred to provide air benefits to the executive in those years as disclosed under All Other
Compensation in the Summary Compensation Table.
(5) Represents the “in-the-money” value of unvested stock options and the face value of unvested restricted stock
and performance stock unit awards that would vest upon termination of employment in the circumstances
described above based on a stock price of $56.69 (the closing price of our stock on the last trading day of
fiscal 2010). The value of the extended term of the options is not reflected in the table because we have
assumed that the executive’s outstanding stock options would be assumed by the acquiring company pursuant
to a change in control.
This calculation is an estimate for proxy disclosure purposes only. Payments on an actual
change in control or termination may differ based on factors such as transaction price, timing
of employment termination and payments, methodology for valuing stock options, changes in
compensation, and reasonable compensation analyses.
REDUCE DUPLICATIVE MAILINGS
The Company is required to provide an
annual report and proxy statement to all
stockholders of record. If you have more
than one account in your name or at the
same address as other stockholders, the
Company or your broker may discontinue
mailings of multiple copies. If you wish to
receive separate mailings for multiple
accounts at the same address, you should
mark the designated box on your proxy card.
If you are voting by telephone or the internet
and you wish to receive multiple copies, you
may notify us at the address and phone
number at the end of the following
paragraph if you are a stockholder of record
or notify your broker if you hold through a
broker.
Once you have received notice from your
broker or us that they or we will discontinue
sending multiple copies to the same
address, you will receive only one copy until
you are notified otherwise or until you revoke
your consent. If, at any time, you wish to
resume receiving separate proxy statements
or annual reports, or if you are receiving
multiple statements and reports and wish to
receive only one, please notify your broker if
your shares are held in a brokerage account
or us if you hold registered shares. You can
notify us by sending a written request to the
Company’s Corporate Secretary, Alaska Air
Group, Inc., P.O. Box 68947, Seattle, WA
98168, or by calling [phone].
ŠProxy
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