US Airways 2007 Annual Report Download - page 176

Table of Contents
US Airways, Inc.
Notes to Consolidated Financial Statements — (Continued)
Restricted stock unit award activity for the years ending December 31, 2007, 2006 and 2005 is as follows (shares in thousands):
Weighted
Number of Average Grant-
2005 Equity Incentive Plan Shares Date Fair Value
Nonvested balance at December 31, 2004 — $ —
Granted 696 26.15
Vested and released — —
Forfeited (9) 24.68
Nonvested balance at December 31, 2005 687 $ 26.17
Granted 254 38.55
Vested and released (75) 42.38
Forfeited (52) 24.85
Nonvested balances at December 31, 2006 814 $ 28.63
Granted 242 41.51
Vested and released (446) 29.85
Forfeited (18) 31.26
Nonvested balance at December 31, 2007 592 $ 32.91
As of December 31, 2007, there was $11 million of total unrecognized compensation costs related to RSUs. These costs are
expected to be recognized over a weighted average period of 1.2 years. The total fair value of RSUs vested during 2007 and 2006 was
$14 million and $3 million, respectively. No RSUs vested during 2005. The tax benefit realized from RSUs vesting during the years
ended December 31, 2007 and 2006 was $5 million and $1 million, respectively. US Airways recognized no tax expense for RSUs vested
and released with book expense exceeding the tax deduction.
Stock Options and Stock Appreciation Rights — Stock options and stock appreciation rights ("SARs") are granted with an exercise
price equal to the fair market value of US Airways Group's common stock at the date of each grant, generally become exercisable over a
three to four year period and expire if unexercised at the end of ten years. Stock options and SARs are classified as equity awards. The
exercise of SARs will be settled with the issuance of shares of US Airways Group's common stock.
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