SkyWest Airlines 2008 Annual Report Download - page 82

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SKYWEST, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
DECEMBER 31, 2008
(7) Capital Transactions (Continued)
As of December 31, 2008, the Company had $9.9 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 1.6 years.
Options are exercisable for a period as defined by the Compensation Committee on 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,
2008, 2007 and 2006:
2008 2007 2006
Weighted
Weighted Average Aggregate Weighted Weighted
Average Remaining Intrinsic Average Average
Number of Exercise Contractual Value Number of Exercise Number of Exercise
Options Price Term ($000) Options Price Options Price
Outstanding at beginning of year ....... 4,681,915 $20.01 5.2 years $32,003 5,504,572 $19.36 6,301,002 $18.38
Granted ....................... 357,716 25.70 382,467 26.87 376,890 23.80
Exercised ...................... (420,670) 14.27 (1,048,072) 18.67 (1,069,073) 15.16
Cancelled ...................... (148,227) 23.38 (157,052) 22.51 (104,247) 19.03
Outstanding at end of year ........... 4,470,734 20.90 4.4 years — 4,681,915 20.01 5,504,572 19.36
Exercisable at December 31, 2008 ...... 3,550,283 19.71 4.2 years —
Exercisable at December 31, 2007 ...... 2,518,685 20.35 3.9 years $16,364
The total intrinsic value of options exercised during the years ended December 31, 2008, 2007 and
2006 was $2.4 million, $8.7 million and $14.2 million, respectively.
The following table summarizes the status of the non-vested stock options as of December 31,
2008:
Weighted-Average
Number of Grant-Date
Shares Fair Value
Non-vested shares at beginning of year ............. 2,163,230 $7.16
Granted ................................... 357,716 6.32
Vested .................................... (1,504,405) 7.04
Cancelled .................................. (96,090) 7.30
Non-vested shares at end of year ................. 920,451 $7.02
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