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JETBLUE AIRWAYS CORPORATION-2012 10K 55
PART II
ITEM 8Financial Statements and Supplementary Data
The following is a summary of restricted stock unit activity under the 2002 Plan for the year ended December31:
2012 2011 2010
Shares
Weighted
Average
GrantDate
Fair Value Shares
Weighted
Average
GrantDate
Fair Value Shares
Weighted
Average
GrantDate
Fair Value
Nonvested at beginning of year 4,093,484 $ 5.64 3,681,013 $ 5.18 3,310,374 $ 5.13
Granted — — 2,677,809 6.01 2,086,973 5.36
Vested (1,921,940) 5.41 (1,731,145) 5.26 (1,262,459) 5.32
Forfeited (142,463) 5.76 (534,193) 5.53 (453,875) 5.21
NONVESTED AT END OF YEAR 2,029,081 $ 5.85 4,093,484 $ 5.64 3,681,013 $ 5.18
The total intrinsic value, determined as of the date of vesting, of all restricted
stock units under both Plans vested and converted to shares of common
stock during the year ended December 31, 2012, 2011 and 2010 was
$11 million, $10 million and $7 million respectively.
We began issuing deferred stock units in 2008 under the 2002 Plan to
members of our Board of Directors.Prior to 2011, these awards vested
immediately upon being granted. Beginning in 2011, the vesting period
was changed to either one or three years of service. Once vested, shares
are issued six months and one day following the Director’s departure
from the Board.During the years ended December31, 2012 and 2011,
we granted an insignifi cant amount of deferred stock units, almost all of
which remain outstanding at December31, 2012.
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 fi ve 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 :
2012 2011 2010
Shares
Weighted
Average
Exercise Price Shares
Weighted
Average
Exercise Price Shares
Weighted
Average
Exercise Price
Outstanding at beginning of year 21,807,170 $ 13.91 23,600,494 $ 13.42 25,592,883 $ 12.88
Granted — — — — — —
Exercised (493,731) 4.00 (934,993) 2.09 (1,158,187) 1.61
Forfeited — — (23,700) 8.92 (27,605) 11.32
Expired (5,468,315) 12.03 (834,631) 13.33 (806,597) 13.40
Outstanding at end of year 15,845,124 $ 14.87 21,807,170 $ 13.91 23,600,494 $ 13.42
Vested at end of year 15,845,124 $ 14.87 21,550,526 $ 13.94 22,504,450 $ 13.47
Available for future grants 56,105,162 50,494,384 39,997,981
The following is a summary of outstanding stock options at December31, 2012:
Range of exercise prices
Options Outstanding, Vested and Exercisable
Shares
Weighted
Average
Remaining
Contractual
Life (years)
Weighted
Average
Exercise Price
Aggregate
Intrinsic Value
(millions)
$7.79to$29.71 15,845,124 2.2 $ 14.87 $ —
15,845,124 $—
The total intrinsic value, determined as of the date of exercise, of options
exercised during the twelve months ended December31, 2012, 2011
and 2010 was $1 million, $3 million and $5 million, respectively. Amounts
received in cash for options exercised were $2 million in each of the years
ended December31, 2012, 2011 and 2010.
Under the 2002 Plan, the number of shares reserved for issuance
automatically increased 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. This automatic reload feature
was eliminated with the adoption of the new 2011 Plan.
Crewmember Stock Purchase Plan: In May 2011, our shareholders
also approved the new 2011 Crewmember Stock Purchase Plan, or the
2011 CSPP, to replace the original Crewmember Stock Purchase Plan,
which was set to expire in April 2012. Upon inception, the 2011 CSPP
had 8.0million shares of our common stock reserved for issuance. The
2011 CSPP, by its terms, will terminate no later than the last business day
of April 2021. The other terms of the 2011 CSPP are substantially similar
to those of the original CSPP.