2007 Annual Report - Ameristar Casinos, Inc.

Future minimum lease payments required under operating leases for each of the five years subsequent toDecember 31, 2007 and thereafter are as follows (amounts in thousands):Note 7 — Benefit plans401(k) planYearPayments2008 .............................................................. $ 5,5482009 .............................................................. 3,9362010 .............................................................. 3,2752011 .............................................................. 2,9412012 .............................................................. 2,955Thereafter...................................................... 603$ 19,258The Company maintains a defined contribution 401(k) plan, which covers all non-union employees who meetcertain age and length of service requirements. Plan participants can elect to defer before-tax compensation throughpayroll deductions. These deferrals are regulated under Section 401(k) of the Internal Revenue Code. The Companymatches 50% of eligible participants’ deferrals that do not exceed 4% of their pay (subject to limitations imposed bythe Internal Revenue Code). The Company’s matching contributions were $2.2 million, $2.1 million and $1.9million for the years ended December 31, 2007, 2006 and 2005, respectively. Neither the 401(k) plan nor any otherCompany benefit plan holds or invests in shares of the Company’s common stock or derivative securities based onthe Company’s common stock.Health benefit planThe Company maintains qualified employee health benefit plans that are self-funded by the Company withrespect to claims below a certain amount. The plans require contributions from eligible employees and theirdependents. The Company’s contribution expense for the plans was approximately $31.8 million, $27.0 million and$29.9 million for the years ended December 31, 2007, 2006 and 2005, respectively. At December 31, 2007 and2006, estimated liabilities for unpaid and incurred but not reported claims totaled $5.8 million and $5.4 million,respectively.Deferred compensation planOn April 1, 2001, the Company adopted a non-qualified deferred compensation plan for certain highlycompensated employees, which was amended and restated effective January 1, 2008. The Company matches, on adollar-for-dollar basis, up to the first 5% of participants’ annual salary and bonus deferrals in each participant’saccount. Matching contributions by the Company for the years ended December 31, 2007, 2006 and 2005 were $0.9million, $0.9 million and $0.8 million, respectively. The Company’s obligation under the plan represents anunsecured promise to pay benefits in the future and in the event of bankruptcy of the Company, assets of the planwould be available to satisfy the claims of general creditors. To increase the security of the participants’ deferredcompensation plan benefits, the Company has established and funded a grantor trust (known as a “rabbi trust”). Therabbi trust is specifically designed so that assets are available to pay plan benefits to participants in the event that theCompany is unwilling or unable to pay the plan benefits for any reason other than insolvency. As a result, theCompany is prevented from withdrawing or accessing assets for corporate needs. Plan participants choose to receivea return on their account balances equal to the return on various investment options. The Company currently investsplan assets in an equity-based life insurance product of which the rabbi trust is the owner and beneficiary.As of December 31, 2007 and 2006, plan assets were $14.8 million and $21.0 million, respectively, and arereflected in other assets in the accompanying consolidated balance sheets. The liabilities due the participants were$14.2 million and $21.2 million as of December 31, 2007 and 2006, respectively. For the years ended December 31,2007, 2006 and 2005, net deferred compensation expense was $2.3 million, $0.1 million and $1.1 million,respectively.F-17