JetBlue Airlines 2010 Annual Report Download - page 74

The total intrinsic value, determined as of the date of vesting, of restricted stock units vested and
converted to shares of common stock during the twelve months ended December 31, 2010 and 2009 was
$7 million and $3 million, respectively.
During 2008, we also began issuing deferred stock units under the 2002 Plan. These awards vest
immediately upon being granted to members of the Board of Directors and shares are issued six months and
one day following the Director’s departure from the Board. During the year ended December 31, 2010, we
granted 51,975 deferred stock units at a weighted average grant date fair value of $6.06, all of which remain
outstanding at December 31, 2010.
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 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 an exercise price equal to the market price of the
underlying common stock on the date of grant.
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
2010 2009 2008
Outstanding at beginning of year........ 25,592,883 $12.88 27,242,115 $12.47 29,731,932 $12.30
Granted .......................... — — — — 54,000 7.03
Exercised ......................... (1,158,187) 1.61 (960,626) 0.78 (718,226) 1.12
Forfeited ......................... (27,605) 11.32 (93,062) 11.00 (461,316) 11.79
Expired .......................... (806,597) 13.40 (595,544) 13.99 (1,364,275) 14.62
Outstanding at end of year ............ 23,600,494 13.42 25,592,883 12.88 27,242,115 12.47
Vested at end of year . ............... 22,504,450 13.47 23,101,559 12.86 22,464,451 12.38
Available for future grants (1) .......... 39,997,981 29,189,222 19,867,014
(1) On January 1, 2011, the number of shares reserved for issuance was increased by 11,787,492 shares.
The following is a summary of outstanding stock options at December 31, 2010:
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 ........ 1,471,926 0.8 $ 2.76 $ 6 1,471,926 0.8 $ 2.76 $ 6
$7.03 to $29.71 ....... 22,128,568 3.6 14.13 — 21,032,524 3.5 14.22 —
23,600,494 3.4 13.42 $ 6 22,504,450 3.3 13.47 $ 6
The total intrinsic value, determined as of the date of exercise, of options exercised during the twelve
months ended December 31, 2010, 2009 and 2008 was $5 million, $4 million and $3 million, respectively. We
received $2 million, $1 million and $1 million in cash from option exercises for the years ended December 31,
2010, 2009 and 2008, 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, by its terms, terminates no later than December 31, 2011.
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