SkyWest Airlines 2015 Annual Report Download - page 86

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82
the number of shares awarded can range from 0% to 150% of the original granted amount, depending on the performance
against the pre-established targets.
The following table summarizes the activity of performance share units granted at target as of December 31,
2015.
Weighted-Average
Grant-Date Fair
Number of Shares
Value
N
on-vested shares outstanding at December 31, 2014 . — $ —
Granted ....................................... 222,583 13.61
Vested ....................................... — —
Cancelled ..................................... (19,754) 13.51
N
on-vested shares outstanding at December 31, 2015 . 202,829 $ 13.62
During the years ended December 31, 2015, 2014 and 2013 the Company granted fully-vested shares of
common stock to the Company’s directors in the amounts of 36,950, 44,631 and 29,453 shares, respectively, with a
weighted average grant-date fair value of $14.05, $12.10, and $13.24, respectively.
During the year ended December 31, 2015, 2014 and 2013, the Company recorded equity-based compensation
expense of $5.4 million, $5.3 million and $4.4 million, respectively.
As of December 31, 2015, the Company had $8.7 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 2.0 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 stock option shall
be exercisable after seven 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, 2015, 2014 and 2013:
2015 2014 2013
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 2,888,074 $ 16.46 1.7 years $ — 3,407,575 $ 17.99 3,653,859 $ 18.44
Granted . . . . . . . . . . 267,433 13.63 255,503 11.96 173,560 13.24
Exercised . . . . . . . . (544,917) 14.68 (6,701) 12.10 (75,080) 10.91
Cancelled . . . . . . . . (1,546,161) 18.53 (768,303) 6.81 (344,764) 20.67
Outstanding at end
of year . . . . . . . . . 1,064,429 13.64 3.7 years $ 5,726.7 2,888,074 16.46 3,407,575 17.99
Exercisable at
December 31,
2015 . . . . . . . . . . . 484,747 14.46 1.7 years $ 2,212.5
Exercisable at
December 31,
2014 . . . . . . . . . . . 2,324,336 17.39 0.8 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, 2015, 2014 and 2013 was $1,800,000, $30,000 and $172,000, respectively.