Air Canada 2012 Annual Report Download - page 126

Download and view the complete annual report

Please find page 126 of the 2012 Air Canada annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 150

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110
  • 111
  • 112
  • 113
  • 114
  • 115
  • 116
  • 117
  • 118
  • 119
  • 120
  • 121
  • 122
  • 123
  • 124
  • 125
  • 126
  • 127
  • 128
  • 129
  • 130
  • 131
  • 132
  • 133
  • 134
  • 135
  • 136
  • 137
  • 138
  • 139
  • 140
  • 141
  • 142
  • 143
  • 144
  • 145
  • 146
  • 147
  • 148
  • 149
  • 150

2012 Air Canada Annual Report
126
There were no options exercised in 2012. The weighted average share price on the date of exercise for options exercised in
2011 was $2.51.
2012 Outstanding Options 2012 Exercisable Options
Range of Exercise
Prices Expiry Dates
Number of
Options
Outstanding
Weighted
Average
Remaining Life
(Years)
Weighted
Average Exercise
Price/Share
Number of
Exercisable
Options
Weighted
Average Exercise
Price/Share
$21.00 2013 315,405 1 $21.00 315,405 $ 21.00
$11.08 – $18.60 2014 237,661 2 14.71 237,661 14.71
$8.51 2015 5,500 3 8.51 5,500 8.51
$0.97 – $1.59 2016 2,110,625 4 1.30 1,722,344 1.32
$1.78 – $1.91 2017 50,000 5 1.85 12,500 1.85
$2.34 2018 2,913,400 6 2.34 364,175 2.34
$0.96 – $1.28 2019 2,777,812 7 0.98 – –
8,410,403 $ 2.68 2,657,585 $ 5.01
2011 Outstanding Options 2011 Exercisable Options
Range of Exercise
Prices Expiry Dates
Number of
Options
Outstanding
Weighted
Average
Remaining Life
(Years)
Weighted
Average Exercise
Price/Share
Number of
Exercisable
Options
Weighted
Average Exercise
Price/Share
$21.00 2013 566,457 2 $ 21.00 566,457 $ 21.00
$11.08 – $18.60 2014 239,539 3 14.72 239,539 14.72
$8.51 2015 5,500 4 8.51 4,125 8.51
$0.97 – $1.59 2016 2,291,875 5 1.32 822,188 1.32
$1.78 – $1.91 2017 50,000 6 1.85 12,500 1.85
$2.34 – $3.35 2018 3,427,871 7 2.39 – –
6,581,242 $ 4.07 1,644,809 $ 10.07
Performance Share Units
The Long-term Incentive Plan also includes performance share units (“PSUs”), which are accounted for as cash settled
instruments. The vesting term of PSUs is three years and generally includes time based vesting features as well as
performance based vesting features, which are based upon achievement of earnings targets established over the vesting
period. The terms of the plan specify that upon the retirement of an employee, the number of PSUs that vest are
prorated based on the total number of completed months of active service during the PSU vesting term. The PSUs granted
may only be redeemed for Air Canada shares purchased on the secondary market and/or equivalent cash at the discretion of
the Board of Directors.
The compensation expense related to PSUs in 2012 was $6 (2011 – recovery of ($1)).
A summary of the Long-term Incentive Plan performance share unit activity is as follows:
2012 2011
Beginning of year 6,115,840 3,589,449
Granted 2,712,230 3,310,900
Settled (1,095,422) (345,692)
Forfeited (476,937) (438,817)
Outstanding PSUs, end of year(1) 7,255,711 6,115,840
(1) 1,315,931 PSUs were eligible for vesting as at December 31, 2012, of which all were vested in accordance with the terms of the program. These PSUs which vested in 2012
are planned to be settled in 2013 and have an intrinsic value of $2 as at December 31, 2012.