US Airways 2008 Annual Report Download - page 164

Table of Contents
US Airways, Inc.
Notes to Consolidated Financial Statements — (Continued)
to the market price of the underlying shares of US Airways Group's common stock on the date of grant if vesting is based on a service or
a performance condition. The grant-date fair value of RSU awards that are subject to both a service and a performance condition are
being expensed over the vesting period, as the performance condition has been met. Vesting periods for RSU awards range from three to
four years. RSUs are classified as equity awards.
RSU award activity for the years ending December 31, 2008, 2007 and 2006 is as follows (shares in thousands):
Weighted
Number of Average Grant-
Shares Date Fair Value
2005 Equity Incentive Plan
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
Granted 535 9.02
Vested and released (390) 29.07
Forfeited (32) 23.15
Nonvested balance at December 31, 2008 705 $ 17.36
2008 Equity Incentive Plan
Nonvested balance at December 31, 2007 — $ —
Granted 19 7.52
Vested and released — —
Forfeited — —
Nonvested balance at December 31, 2008 19 $ 7.52
As of December 31, 2008, there were $8 million of total unrecognized compensation costs related to RSUs. These costs are
expected to be recognized over a weighted average period of 1.1 years. The total fair value of RSUs vested during 2008, 2007 and 2006
was $3 million, $14 million and $3 million, respectively.
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 their term, which ranges from seven to 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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