Delta Airlines 2003 Annual Report Download - page 119

Table of Contents
The following table summarizes all stock option and stock appreciation rights (SAR) activity for the years ended December 31, 2003, 2002 and 2001:
2003 2002 2001
Weighted Weighted Weighted
Average Average Average
Exercise Exercise Exercise
(shares in thousands) Shares Price Shares Price Shares Price
Outstanding at the beginning of the year 58,806 $ 44 51,537 $ 48 50,365 $ 48
Granted 14,235 11 8,478 21 2,358 46
Exercised (38) 11 (9) 27 (76) 34
Forfeited (32,769) 47 (1,200) 48 (1,110) 53
Outstanding at the end of the year 40,234 31 58,806 44 51,537 48
Exercisable at the end of the year 22,846 $ 44 45,996 $ 48 44,751 $ 48
The following table summarizes information about stock options outstanding and exercisable at December 31, 2003:
Stock Options Outstanding Stock Options Exercisable
Weighted Weighted Weighted
Number Average Average Number Average
Outstanding Remaining Exercise Exercisable Exercise
Stock Options (000) Life (years) Price (000) Price
$9-$20 18,231 7 $ 11 2,055 $ 11
$21-$35 4,243 4 $ 34 3,800 $ 34
$36-$50 15,915 4 $ 49 15,244 $ 49
$51-$64 1,845 6 $ 56 1,747 $ 56
Payment of Dividends
The determination to pay cash dividends on our ESOP Preferred Stock and our common stock is at the discretion of our Board of Directors, and is also subject
to the provisions of Delaware General Corporation Law (Delaware Law). Delaware law provides that a company may pay dividends on its stock only (1) out
of its "surplus", which is generally defined as the excess of the company's net assets over the aggregate par value of its issued stock, or (2) from its net profits
for the fiscal year in which the dividend is paid or from its net profits for the preceding fiscal year.
In July 2003, our Board of Directors discontinued the payment of quarterly cash dividends on our common stock due to the financial challenges facing Delta.
We had previously paid a quarterly dividend of $0.025 per common share.
Effective December 2003, our Board of Directors suspended indefinitely the payment of dividends on our ESOP Preferred Stock to comply with Delaware
law. At December 31, 2003, we had a negative "surplus" (as defined above) and we did not have net profits in either of the years ended December 31, 2003 or
2002. The terms of the ESOP Preferred Stock discussed
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