Defined Contribution 401(k) Plan

12 Months Ended

Dec. 31, 2018

Retirement Benefits [Abstract]

Defined Contribution 401(k) Plan

Defined Contribution 401(k) Plan

The Company sponsors three defined contribution 401(k) plans, Spirit Airlines, Inc. Employee Retirement Savings Plan (first plan), Spirit Airlines, Inc. Pilots’ Retirement Savings Plan (second plan) and Spirit Airlines, Inc. Puerto Rico Retirement Savings Plan (third plan). The first plan is for all employees that are not covered by the pilots’ collective bargaining agreement, who have at least 60 days of service and have attained the age of 21. The Company may make a Qualified Discretionary Contribution, as defined in the plan, or provide matching contributions to this plan. For flight attendants, dispatchers and mechanics participating in the first plan, the Company currently matches 100% of the employee's contribution, up to a maximum of 6% of the employee's annual compensation. Prior to May 1, 2016, the Company matched 50% of the flight attendant, dispatcher and mechanic's contribution, up to a maximum of 6% of the employee's annual compensation. For all other employees participating in the first plan, the Company matches 50% of the employee’s contribution, up to a maximum of 6% of the employee’s annual compensation. This plan is subject to the 2018 annual IRS elective deferral limits of $18,500 for employee contributions and $55,000 for both employee and employer contributions combined.

The second plan is for the Company’s pilots, and contains the same service requirements as the first plan. Prior to March 1, 2018, the Company matched 100% of the pilot's contribution, up to 9% of the individual pilot's annual compensation. Beginning on March 1, 2018, the Company contributes 11% of the individual pilot's annual compensation, regardless of the pilot's contributions to the plan. The Company's contribution will increase by 1% on an annual basis each March until 2022 at which time the contribution will be 15%. In 2018, the Company's contributions to the plan are limited by the IRS annual compensation limit of $275,000. In addition, this plan is subject to the 2018 annual IRS pre-tax elective deferral limits of $18,500 for employee contributions and $55,000 for both employee and employer contributions combined.

The third plan is for all Company employees residing in Puerto Rico and was adopted on April 16, 2012. It contains the same service requirements as the first and second plans. For pilots participating in the Puerto Rico plan, prior to March 1, 2018, the Company matched 100% of their contribution, up to 9% of the individual pilot's annual compensation. Beginning on March 1, 2018, the Company contributes 11% of the individual pilot's annual compensation, regardless of the pilot's contributions to the plan. The Company's contribution will increase by 1% on an annual basis each March until 2022 at which time the contribution will be 15%. For all other employees participating in the Puerto Rico plan, the Company matches 50% of the employee's contribution, up to 6% of the employee's annual compensation. In 2018, the Company's contributions to the plan are limited by the IRS annual compensation limit of $275,000. In addition, this plan is subject to the 2018 annual Puerto Rico pre-tax elective deferral limits of $15,000 for employee contributions and $55,000 for both employee and employer contributions combined.

Employer contributions made to all plans were $36.7 million, $19.6 million and $16.2 million in 2018, 2017 and 2016, respectively, and were included within salaries, wages and benefits in the accompanying statements of operations.