US Airways 2009 Annual Report Download - page 107

Table of Contents
stock issued pursuant to a restricted stock unit, which corresponds to the reduction originally made with respect to each award in the 2005
Plan.
The 2008 Plan authorizes the grant of awards for the issuance of up to a maximum of 6,700,000 shares of the Company's common
stock. Awards may be in the form of performance grants, bonus awards, performance shares, restricted stock awards, vested shares,
restricted stock units, vested units, incentive stock options, nonstatutory stock options and stock appreciation rights. The number of
shares of the Company's common stock available for issuance under the 2008 Plan is reduced by (i) one share for each share of stock
issued pursuant to a stock option or a stock appreciation right, and (ii) one and one-half (1.5) shares for each share of stock issued
pursuant to all other stock awards. Cash settled awards do not reduce the number of shares available for issuance under the 2008 Plan.
Stock awards that are terminated, forfeited or repurchased result in an increase in the share reserve of the 2008 Plan corresponding to the
reduction originally made in respect of the award. Any shares of the Company's stock tendered or exchanged by a participant as full or
partial payment to the Company of the exercise price under an option and any shares retained or withheld by the Company in satisfaction
of an employee's obligations to pay applicable withholding taxes with respect to any award will not be available for reissuance, subjected
to new awards or otherwise used to increase the share reserve under the 2008 Plan. The cash proceeds from option exercises will not be
used to repurchase shares on the open market for reuse under the 2008 Plan.
The Company's net income (loss) for the years ended December 31, 2009, 2008 and 2007 included $23 million, $34 million and
$32 million, respectively, of stock-based compensation costs. During 2009, stock-based compensation costs consisted of $20 million
related to stock settled awards and $3 million related to cash settled awards.
Restricted Stock Unit Awards – As of December 31, 2009, the Company has outstanding restricted stock unit awards ("RSUs") with
service conditions, which are classified as equity awards. The grant-date fair value of RSUs is equal to the market price of the underlying
shares of common stock on the date of grant and is expensed over the vesting period. The vesting period for RSU awards is three years.
RSU award activity for the years ending December 31, 2009, 2008 and 2007 is as follows (shares in thousands):
Weighted
Number of Average Grant-
Shares Date Fair Value
2005 Equity Incentive Plan
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
Granted — —
Vested and released (323) 22.16
Forfeited (29) 15.76
Nonvested balance at December 31, 2009 353 $ 13.10
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
Granted 280 3.44
Vested and released (189) 2.84
Forfeited — —
Nonvested balance at December 31, 2009 110 $ 5.19
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