US Airways 2005 Annual Report Download - page 269

Table of Contents
US Airways, Inc.
Notes to the Financial Statements — (Continued)
Pursuant to collective bargaining agreements, 23,028,687 shares of Class A Common Stock of US Airways Group allocated to employees were valued at
$169 million in the aggregate and were included as deferred compensation as a reduction to stockholders' equity (deficit) upon emergence from the first
bankruptcy. US Airways recorded the deferred compensation as compensation expense as the related shares vested.
Prior to cancellation of the shares of US Airways Group's common stock upon emergence from bankruptcy on September 27, 2005, there were
4,750,000 shares of US Airways Group Class A Common Stock and 2,220,570 each of Class A-1 Warrants and shares of Class A Preferred Stock authorized
to be granted to US Airways' management. Through September 27, 2005, 3,649,159 shares of US Airways Group Class A Common Stock, 2,101,240 each of
Class A-1 warrants and Class A Preferred Stock, and 354,350 options to purchase Class A Common Stock were granted to US Airways' management. Grants
of Class A Common Stock, stock options and warrants generally vested over four years. The Predecessor Company recorded compensation expense over the
vesting period. The following table summarizes the activity of the Predecessor Company's stock options and warrants granted since emergence from the first
bankruptcy through cancellation of those shares upon emergence from the second bankruptcy:
Weighted Weighted
Avg. Avg.
Stock Options Exercise Price Warrants Exercise Price
Granted — $ — 2,227,576 $ 7.42
Canceled — — (11,050) 7.42
Balance at 12/31/03 — — 2,216,526 7.42
Granted 466,640 1.53 49,200 7.42
Canceled (109,250) 1.51 (147,236) 7.42
Balance at 12/31/04 357,390 1.54 2,118,490 7.42
Granted — — — —
Canceled (357,390) 1.57 (2,118,490) 7.42
Balance at 9/27/05 — $ — — $ —
There were no stock options or warrants granted during the nine months ended September 30, 2005. The weighted average fair value of stock option and
warrants granted during the year ended December 31, 2004 was $0.80 and $2.70, respectively. The weighted average fair value for warrants granted during
the nine month period ended December 31, 2003 was $3.38.
US Airways did not grant any shares of restricted stock during the nine months ended September 30, 2005. US Airways granted 835,160 and
3,627,923 shares of restricted Class A Common Stock during the year ended December 31, 2004 and the nine months ended December 31, 2003. There were
1,683,674 non-vested shares of restricted stock outstanding immediately prior to cancellation upon emergence from the second bankruptcy on September 27,
2005. 263