Airtran 2009 Annual Report Download - page 104

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95
Note 11 – Stock Option Awards and Restricted Stock Awards
Our 1994 Stock Option Plan and 1996 Stock Option Plan authorized up to 4 million, and 5 million incentive
stock options or non-qualified stock options, respectively, to be granted to our officers, directors, key
employees and consultants. No new awards may be made under the 1994 Stock Option Plan or the 1996 Stock
Option Plan. Our Fifth Amended and Restated Long Term Incentive Plan (which we refer to as our Long-Term
Incentive Plan or LTIP), was, as amended and restated, adopted in 2009 and authorizes the grant of up
to 13.5 million shares of our common stock, which may be awarded in the form of options, restricted stock
awards and other securities to our officers, directors, key employees and consultants. Awards for the issuance of
up to 3,899,094 shares remain outstanding under such plans.
Vesting and the term of all options under the LTIP is determined by the Board of Directors and may vary by
optionee; however, the term may be no longer than ten years from the date of grant. As of December 31, 2009,
an aggregate of 6.8 million shares of restricted stock and options to acquire common stock remained available
for future grant under the LTIP.
Stock Options
There were no options granted during 2009, 2008, or 2007. No compensation expense for stock options was
recognized during 2009, 2008, or 2007.
A summary of stock option activity under the aforementioned plans is as follows:
Options
Weighted-
Average
Exercise
Price
Balance at January 1, 2009 2,177,406 $ 7.57
Exercised (98,809) 5.59
Expired (10,000) 5.00
Cancelled (13,775) 8.59
Balance at December 31, 2009 2,054,822 $ 7.67
Exercisable at Decembe
r
31
,
2009 2
,
054
,
822 $ 7.67
The options outstanding, as of December 31, 2009, have a weighted-average remaining contractual life of 2.5
years and an aggregate intrinsic value of $0.5 million. The total intrinsic value of options exercised during the
years ended December 31, 2009, 2008, and 2007, was $0.2 million, $1.0 million, and $1.0 million,
respectively. Cash received from options exercised under all share-based payment arrangements for the years
ended December 31, 2009, 2008, and 2007, was $0.6 million, $2.6 million, and $1.0 million, respectively. The
benefits associated with the tax deductions in excess of recognized compensation cost have been reported as a
financing cash flow rather than an operating cash flow. For the years ended December 31, 2009, 2008, and
2007, we did not record any excess tax benefit generated from option exercises.