Delta Airlines 2010 Annual Report Download - page 94

Table of Contents
The following table summarizes restricted stock activity:
Weighted
Average
Grant Date
(in millions, except per share amounts) Shares Fair Value
Unvested at January 1, 2010 13 $ 7.73
Granted 2 11.73
Vested (6) 7.83
Unvested at December 31, 2010 9 $ 8.81
The weighted average grant-date fair value of restricted stock granted was $11.73, $6.71, and $8.04 during the years ended December 31, 2010, 2009, and
2008, respectively. The total fair value of restricted stock vested during the years ended December 31, 2010, 2009 and 2008 was $45 million, $68 million and
$107 million, respectively.
Stock Options. Stock option awards are granted with an exercise price equal to the closing price of Delta common stock on the grant date. Generally,
outstanding employee stock options vest over several years and have a 10-year term, subject to the employee's continued employment. We determine the fair
value of stock options at the grant date using an option pricing model.
The following table summarizes stock option activity:
Weighted
Average
Weighted Remaining Aggregate
Average Contractual Intrinsic
Shares Exercise Life Value
(in millions) Price (in years) (in millions)
Outstanding at January 1, 2010 22 $ 12.79
Exercised (1) 8.00
Forfeited or expired (1) 17.51
Outstanding at December 31, 2010(1) 20 $ 12.92 5.3 $ 47
Exercisable at December 31, 2010 17 $ 14.03 4.7 $ 29
(1) We expect substantially all of our unvested stock options at December 31, 2010 to vest.
Performance Shares. Performance shares are long-term incentive opportunities which are payable in common stock and are generally contingent upon our
achieving certain financial goals.
Other. There was no tax benefit recognized in 2010, 2009 or 2008 related to equity-based compensation, as we record a full valuation allowance against
our deferred tax assets due to the uncertainty regarding the ultimate realization of those assets. For additional information, see Note 9.
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