SkyWest Airlines 2007 Annual Report Download - page 58

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57
2007
Number of
Shares
Weighted-
Average
Grant-Date
Fair Value
Non-vested shares outstanding at December 31, 2005 ........................... — $—
Granted................................................................................................... 330,423 23.80
Vested..................................................................................................... (12,600) 23.80
Cancelled................................................................................................ (5,072) 23.80
Non-vested shares outstanding at December 31, 2006 ........................... 312,751 $23.80
Granted................................................................................................... 311,211 26.84
Vested..................................................................................................... (1,579) 24.07
Cancelled................................................................................................ (87,948) 25.30
Non-vested shares outstanding at December 31, 2007 ........................... 534,435 $25.35
During the year ended December 31, 2007 and 2006, the Company recorded equity-based compensation expense of
$13.1 million and $10.8 million, respectively
As of December 31, 2007, the Company had $10.4 million of total unrecognized compensation cost related to non-
vested stock options and non-vested restricted stock grants. Total unrecognized compensation cost will be adjusted for future
changes in estimated forfeitures. The Company expects to recognize this cost over a weighted average period of 1.8 years.
Options are exercisable for a period as defined by the Compensation Committee at the date granted; however, no
stock option will be exercisable before six months have elapsed from the date it is granted and no incentive stock option shall
be exercisable after ten years from the date of grant. The following table summarizes the stock option activity for all plans for
the years ended December 31, 2007, 2006 and 2005:
2007 2006 2005
Number of
Options
Weighted
Average
Exercise
Price
Weighted
Average
Remaining
Contractual
Term
Aggregate
Intrinsic
Value
($000)
Number of
Options
Weighted
Average
Exercise
Price
Number
of
Options
Weighted
Average
Exercise
Price
Outstanding at beginning of year ........................ 5,504,572 $19.36 6.5 years $33,862 6,301,002 $18.38 5,531,101 $19.39
Granted ................................................................ 382,467 26.87 376,890 23.80 1,826,050 17.11
Exercised ............................................................. (1,048,072) 18.67 (1,069,073) 15.16 (891,292) 21.71
Cancelled ............................................................. (157,052) 22.51 (104,247) 19.03 (164,857) 17.58
Outstanding at end of year .................................. 4,681,915 20.01 5.2 years $32,003 5,504,572 19.36 6,301,002 18.38
Exercisable at December 31, 2007...................... 2,518,685 20.35 3.9 years $16,364
Exercisable at December 31, 2006...................... 2,379,124 20.36 4.4 years $12,251
The total intrinsic value of options exercised during the years ended December 31, 2007, 2006 and 2005 was
$8.7 million, $14.2 million and $7.1 million, respectively.
The following table summarizes the status of the non-vested stock options as of December 31, 2007:
Number of
Shares
Weighted-
Average
Grant-Date
Fair Value
Non-vested shares at beginning of year......................... 3,125 448 $6.88
Granted.......................................................................... 382,467 8.06
Vested............................................................................ (1,214,722) 6.71
Cancelled....................................................................... (129,963) 6.88
Non-vested shares at end of year................................... 2,163,230 $7.16