Airtran 2010 Annual Report Download - page 108

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Compensation expense for our performance share awards was $1.0 million and $0.4 million for the years ended
December 31, 2010 and 2009, respectively. There was no expense for the year ended December 31, 2008. As of
December 31, 2010, we have $1.6 million in total unrecognized future compensation expense that will be recognized over
the next two years relating to awards for up to approximately 1.0 million performance share awards which were
outstanding at such date, but which had not yet vested.
A summary of performance share activity under the aforementioned plan is as follows:
Performance Share
Awards
(at Target)
Weighted-Average Fair
Value
Remaining
Amortization Period
Intrinsic Value
Unvested at January 1, 2010 180,180 7.35
Vested • •
Issued 320,003 5.13
Surrendered • •
Unvested at December 31, 2010 500,183 5.93 1.7 $3,696,352
If the acquisition of AirTran by Southwest is consummated, each outstanding AirTran performance share will become
vested as to the target number (100%) of shares granted, and the applicable performance period will be deemed to have
terminated as of the completion of the Merger, such that the number of performance shares earned will be prorated to
reflect the shortened performance period.
Note 12 – Employee Benefit Plans
All employees, except pilots and mechanics, are eligible to participate in our consolidated 401(k) plan, a defined
contribution benefit plan that qualifies under Section 401(k) of the Internal Revenue Code. Participants may contribute up
to 15 percent of their base salary to the plan. Our contributions to the plan are discretionary. The amount of our
contributions to the plan expensed in 2010, 2009, and 2008 was approximately $1.6 million, $1.4 million, and $1.4
million, respectively.
Effective August 1, 2001, the AirTran Airways Pilot Savings and Investment Plan (Pilot Savings Plan) was established.
This plan is designed to qualify under Section 401(k) of the Internal Revenue Code. Eligible employees may contribute up
to the IRS maximum allowed. We do not match pilot contributions to this Pilot Savings Plan. Effective on August 1,
2001, we also established the Pilot-Only Defined Contribution Pension Plan (DC Plan) which qualifies under
Section 403(b) of the Internal Revenue Code. Our contributions were 10.5 percent of compensation, as defined, during
2010, 2009, and 2008. We expensed $18.4 million, $17.3 million, and $15.7 million in contributions to the DC Plan
during 2010, 2009, and 2008, respectively. We established an Employee Stock Purchase Plan in 1995. Under our
Employee Stock Purchase Plan as currently in effect, employees who complete 12 months of service are eligible to make
periodic purchases of our common stock at up to a 15 percent discount from the market value on the offering date. We are
authorized to issue up to 4 million shares of common stock under this plan. During 2010, 2009, and 2008, the employees
purchased approximately 205,000, 227,000, and 376,000 shares, respectively, at an average price of $5.45, $4.85, and
$3.65 per share, respectively.
100