Delta Airlines 2005 Annual Report Download - page 114

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Table of Contents
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS — (Continued)
The following table summarizes all stock option activity for the years ended December 31, 2005, 2004 and 2003:
2005 2004 2003
Weighted Weighted Weighted
Average Average Average
Shares Exercise Shares Exercise Shares Exercise
(000) Price (000) Price (000) Price
Outstanding at the beginning of the year 105,933 $ 15 37,893 $ 31 58,806 $ 44
Granted 1,939 5 70,763 6 11,894 12
Exercised — — (3) 11 (38) 11
Forfeited (15,471) 8 (2,720) 38 (32,769) 47
Outstanding at the end of the year 92,401 16 105,933 15 37,893 31
Exercisable at the end of the year 53,944 $ 22 33,337 $ 33 22,846 $ 44
The following table summarizes information about stock options outstanding and exercisable at December 31, 2005:
Stock Options
Stock Options Outstanding Exercisable
Weighted Weighted Weighted
Number Average Average Number Average
Exercise Price of Outstanding Remaining Exercise Exercisable Exercise
Stock Options (000) Life (years) Price (000) Price
$2-$20 72,863 9 $ 7 34,406 $ 8
$21-$35 3,864 2 $ 34 3,864 $ 34
$36-$50 14,728 2 $ 49 14,728 $ 49
$51-$70 946 4 $ 56 946 $ 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") and restrictions in our DIP
Credit Facility and Amex Post-Petition Facility.
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 provisions of Delaware Law, which limits a company's ability to pay dividends. The terms of the ESOP Preferred
Stock provided for cumulative dividends on that stock. Unpaid dividends on the ESOP Preferred Stock accrued without interest, until
paid, at a rate of $4.32 per share per year. At December 31, 2005 and 2004, accumulated but unpaid dividends on the ESOP Preferred
Stock totaled $50 million and $35 million, respectively, and are recorded in Liabilities Subject to Compromise on our Consolidated
Balance Sheet. Subsequent to December 31, 2005 all outstanding shares of ESOP Preferred Stock were converted into common stock.
See "ESOP Preferred Stock" below. F-52