JetBlue Airlines 2008 Annual Report Download - page 68

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The following is a summary of stock option activity for the years ended December 31:
Shares
Weighted
Average
Exercise
Price Shares
Weighted
Average
Exercise
Price Shares
Weighted
Average
Exercise
Price
2008 2007 2006
Outstanding at beginning of year........ 29,731,932 $12.30 31,089,745 $12.13 31,086,422 $11.52
Granted .......................... 54,000 7.03 2,926,250 10.94 4,360,949 11.43
Exercised ......................... (718,226) 1.12 (1,823,903) 4.25 (3,011,260) 3.75
Forfeited ......................... (461,316) 11.79 (737,127) 11.87 (344,398) 12.11
Expired .......................... (1,364,275) 14.62 (1,723,033) 15.73 (1,001,968) 15.20
Outstanding at end of year ............ 27,242,115 12.47 29,731,932 12.30 31,089,745 12.13
Vested at end of year . ............... 22,464,451 12.38 22,537,850 12.19 24,881,786 11.86
Available for future grants (1) .......... 19,867,014 12,589,744 6,022,883
(1) On January 1, 2009, the number of shares reserved for issuance was increased by 10,870,200 shares.
The following is a summary of outstanding stock options at December 31, 2008:
Range of
exercise prices Shares
Weighted
Average
Remaining
Contractual
Life (years)
Weighted
Average
Exercise
Price
Aggregate
Intrinsic
Value
(millions) Shares
Weighted
Average
Remaining
Contractual
Life (years)
Weighted
Average
Exercise
Price
Aggregate
Intrinsic
Value
(millions)
Options Outstanding Options Vested and Exercisable
$0.33 to $4.00 ........ 3,614,114 2.2 $ 1.86 $18 3,614,114 2.2 $ 1.86 $18
$7.03 to $29.71 ....... 23,628,001 5.7 14.10 — 18,850,337 5.3 14.40 —
27,242,115 5.2 12.47 $18 22,464,451 4.8 12.38 $18
The total intrinsic value, determined as of the date of exercise, of options exercised during the twelve
months ended December 31, 2008, 2007 and 2006 was $3 million, $15 million and $25 million, respectively.
We received $1 million, $8 million and $11 million in cash from option exercises for the years ended
December 31, 2008, 2007 and 2006, respectively.
The number of shares reserved for issuance under the 2002 Plan 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.
Crewmember Stock Purchase Plan: Our CSPP, which is available to all employees, had 5.1 million
shares of our common stock initially reserved for issuance at its inception in April 2002. Through 2008, the
reserve automatically increased each January by an amount equal to 3% of the total number of shares of our
common stock outstanding on the last trading day in December of the prior calendar year. The CSPP was
amended in 2008 to eliminate this automatic reload feature and will terminate no later than the last business
day of April 2012.
The CSPP has a series of successive overlapping 24-month or 6-month offering periods, with a new
offering period beginning on the first business day of May and November each year. Employees can only join
an offering period on the start date and participate in one offering period at a time. Employees may contribute
up to 10% of their pay, through payroll deductions, toward the purchase of common stock. Purchase dates
occur on the last business day of April and October each year.
Effective May 1, 2007, all new CSPP participation is considered non-compensatory following the
elimination of the 24-month offering period and the reduction of the purchase price discount from 15% to 5%.
Participants previously enrolled were allowed to continue to purchase shares in their compensatory offering
periods until those offering periods expired in 2008. The modification to our CSPP plan was done in
conjunction with the modifications to our employee retirement plan discussed in Note 10.
59