SkyWest Airlines 2014 Annual Report Download - page 100

Download and view the complete annual report

Please find page 100 of the 2014 SkyWest Airlines annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 178

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110
  • 111
  • 112
  • 113
  • 114
  • 115
  • 116
  • 117
  • 118
  • 119
  • 120
  • 121
  • 122
  • 123
  • 124
  • 125
  • 126
  • 127
  • 128
  • 129
  • 130
  • 131
  • 132
  • 133
  • 134
  • 135
  • 136
  • 137
  • 138
  • 139
  • 140
  • 141
  • 142
  • 143
  • 144
  • 145
  • 146
  • 147
  • 148
  • 149
  • 150
  • 151
  • 152
  • 153
  • 154
  • 155
  • 156
  • 157
  • 158
  • 159
  • 160
  • 161
  • 162
  • 163
  • 164
  • 165
  • 166
  • 167
  • 168
  • 169
  • 170
  • 171
  • 172
  • 173
  • 174
  • 175
  • 176
  • 177
  • 178

SKYWEST, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
DECEMBER 31, 2014
(9) Capital Transactions (Continued)
As of December 31, 2014, the Company had $4.0 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 1.2 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 of the Company’s plans for the years ended
December 31, 2014, 2012 and 2011:
2014 2013 2012
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 ................ 3,407,575 $17.99 1.8 years 3,653,859 $18.44 4,176,673 $19.26
Granted ............... 255,503 11.96 173,560 13.24 200,115 13.06
Exercised .............. (6,701) 12.10 (75,080) 10.91 (179,204) 10.57
Cancelled .............. (768,303) 6.81 (344,764) 20.67 (543,725) 25.35
Outstanding at end of year . . 2,888,074 16.46 1.7 years — 3,407,575 17.99 3,653,859 18.44
Exercisable at December 31,
2014 ................ 2,324,336 17.39 0.8 years —
Exercisable at December 31,
2013 ................ 2,818,464 18.83 1.1 years —
The total intrinsic value of options to acquire shares of the Company’s common stock that were
exercised during the years ended December 31, 2014, 2013 and 2012 was $30,000, $172,000 and
$191,000, respectively.
The following table summarizes the status of the Company’s non-vested stock options as of
December 31, 2014:
Weighted-Average
Number of Grant-Date
Shares Fair Value
Non-vested shares at beginning of year .............. 589,111 $5.07
Granted .................................... 255,503 $4.36
Vested ..................................... (217,918) 5.58
Cancelled ................................... (62,958) 4.74
Non-vested shares at end of year .................. 563,738 $4.56
95