US Airways 2009 Annual Report Download - page 143

Table of Contents
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.
US Airways' 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, US Airways Group 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 US Airways Group's 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
As of December 31, 2009, there were $3 million of total unrecognized compensation costs related to RSUs. These costs are expected
to be recognized over a weighted average period of 0.9 years. The total fair value of RSUs vested during 2009, 2008 and 2007 was
$2 million, $3 million and $14 million, respectively.
Stock Options and Stock Appreciation Rights – Stock options and stock appreciation rights are granted with an exercise price equal to
the underlying common stock's fair market value at the date of each grant. Stock options and stock appreciation rights have service
conditions, become exercisable over a three-year vesting period and expire if unexercised at the end of their term, which ranges from
seven to 10 years. Stock options and stock-settled stock appreciation rights ("SARs") are classified as equity awards as the exercise
results in the issuance of shares of US Airways Group's common stock. Cash-settled stock appreciation rights ("CSARs") are classified as
liability awards as the exercise results in payment of cash by US Airways.
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