Airtran 2003 Annual Report Download - page 42

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For purposes of pro forma disclosures, the estimated fair value of the options is amortized to expense over the options’ vesting period.
The pro forma net income (loss) and earnings (loss) per common share information presented above reflect stock options granted during
1995 and in later years, in accordance with SFAS 123. Accordingly, the full effect of calculating compensation expense for stock
options under SFAS 123 is not reflected in the pro forma net income (loss) and earnings (loss) per common share amounts above,
because compensation expense is recognized over the stock option’s vesting period and compensation expense for stock options
granted prior to January 1, 1995, is not considered.
A summary of stock option activity under the aforementioned plans is as follows:
Weighted-
Average
Options Price Range Price
Balance at January 1, 2001 9,104,260 $0.17–23.19 $ 4.17
Granted 1,721,600 6.08–11.00 7.14
Exercised (1,459,656) 0.17– 8.25 3.48
Canceled (100,365) 4.00–21.38 6.59
Balance at December 31, 2001 9,265,839 0.17–23.19 4.79
Granted 2,114,829 2.78– 9.05 6.47
Exercised (1,405,253) 0.17– 5.75 0.58
Canceled (190,426) 3.88–21.38 6.02
Balance at December 31, 2002 9,784,989 0.17–23.19 5.73
Granted 581,733 4.90–13.03 5.33
Exercised (2,082,000) 0.17– 9.30 3.25
Canceled (56,023) 5.13–21.38 13.86
BALANCE AT DECEMBER 31, 2003 8,228,699 $1.00–23.19 $ 6.18
EXERCISABLE AT DECEMBER 31, 2003 6,366,369 $1.00–23.19 $ 6.30
The following table summarizes information concerning currently outstanding and exercisable options:
Options Outstanding Options Exercisable
Weighted- Weighted- Weighted-
Average Average Average
Range of Number Remaining Exercise Number Exercise
Exercise Prices Outstanding Contractual Life Price Exercisable Price
$ 1.00– 4.00 3,034,332 5.0 $ 3.34 2,494,991 $ 3.24
4.03– 5.97 2,138,233 6.8 4.93 1,331,568 4.77
6.08– 9.12 2,389,734 7.6 7.51 1,903,410 7.26
9.30–13.03 55,000 6.7 11.85 25,000 11.58
18.38–23.19 611,400 2.1 18.95 611,400 18.95
$ 1.00–23.19 8,228,699 6.0 $ 6.18 6,366,369 $ 6.30
The weighted-average fair value of options granted during 2003, 2002 and 2001, with option prices equal to the market price on the
date of grant, was $3.14, $2.48 and $4.22, respectively.
There were no options granted during 2003 and 2001 with options prices greater than the market price of the stock on the date of
grant. The weighted-average fair value of options granted during 2002, with option prices greater than the market price on the date
of grant was $2.86.
The weighted-average fair value of options granted during 2003 and 2002, with option prices less than the market price on the date
of grant was $4.35 and $4.60, respectively. There were no options granted during 2001 with option prices less than the market price
of the stock on the date of grant.
At December 31, 2003, we had reserved a total of 12,958,067 shares of common stock for future issuance, upon exercise of stock options.
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