JetBlue Airlines 2006 Annual Report Download - page 68

Download and view the complete annual report

Please find page 68 of the 2006 JetBlue Airlines annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 104

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104

The following is a summary of CSPP share reserve activity for the years ended December 31:
2006 2005 2004
Shares
Weighted
Average Shares
Weighted
Average Shares
Weighted
Average
Available for future purchases,
beginning of year............. 13,706,245 10,577,175 7,540,233
Shares reserved for issuance (1) . . 5,178,659 4,690,645 4,593,110
Common stock purchased ....... (1,976,052) $ 8.73 (1,561,575) $ 10.83 (1,556,168) $ 10.09
Available for future purchases,
end of year .................. 16,908,852 13,706,245 10,577,175
(1) On January 1, 2007, the number of shares reserved for issuance was increased by 5,328,277 shares.
Stock Incentive Plan: The 2002 Plan, which includes stock options issued during 1999 through
2001 under a previous plan as well as all options issued since, provides for incentive and non-qualified
stock options to be granted to certain employees and members of our Board of Directors. The 2002
Plan became effective following our initial public offering. Prior to January 1, 2006, stock options
under the 2002 Plan became exercisable when vested, which occurred in annual installments of three
to seven years. For issuances under the 2002 Plan beginning in 2006, we revised the vesting terms so
that all options granted now vest in equal installments over a period of three or five years, or upon
the occurrence of a change in control. All options issued under the 2002 Plan expire ten years from
the date of grant. Our policy is to grant options with the exercise price equal to the market price of
the underlying common stock on the date of grant. The number of shares reserved for issuance will
automatically increase each January by an amount equal to 4%of the total number of shares of our
common stock outstanding on the last trading day in December of the prior calendar year. In no event
will any such annual increase exceed 12.2 million shares. The 2002 Plan will terminate no later than
December 31, 2011.
The following is a summary of stock option activity for the years ended December 31:
2006 2005 2004
Shares
Weighted
Average
Exercise
Price Shares
Weighted
Average
Exercise
Price Shares
Weighted
Average
Exercise
Price
Outstanding at beginning of
year ..................... 31,086,422 $ 11.52 26,966,499 $ 10.54 24,229,518 $ 8.72
Granted .................... 4,360,949 11.43 6,600,006 13.53 4,957,950 16.90
Exercised ................... (3,011,260) 3.75 (1,779,598) 3.16 (1,695,065) 2.59
Forfeited and expired ......... (1,346,366) 14.13 (700,485) 14.07 (525,904) 12.30
Outstanding at end of year ..... 31,089,745 12.13 31,086,422 11.52 26,966,499 10.54
Vested at end of year ......... 24,881,786 11.86 28,411,718(1) 11.13 5,962,386 5.74
Available for future grants (2) . . 6,022,883 2,132,587 1,777,914
(1) Includes 19.9 million shares associated with our December 2005 stock option acceleration
discussed in Note 1.
(2) On January 1, 2007, the number of shares reserved for issuance was increased by 7,104,370 shares.
58