United Airlines 2009 Annual Report Download - page 102

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Table of Contents
(In millions, except per share)
Year Ended December 31,
UAL 2009 2008 2007
Potentially dilutive shares excluded from diluted per share amounts:
Stock options 6.4 4.4 4.0
Restricted shares (b) 0.8 1.4 0.9
2% preferred securities — 3.1 —
4.5% Senior Limited-Subordination Convertible Notes due 2021 22.2 22.2 —
5% Senior Convertible Notes due 2021 3.4 3.4 3.2
6% Senior Convertible Notes due 2029 39.7 — —
72.5 34.5 8.1
(a) As discussed in Note 1(p), “Summary of Significant Accounting Policies—New Accounting Pronouncements,” nonvested restricted shares are considered
participating securities securities under the ASC 260 Update.
(b) These shares will also impact the computation of basic earnings per share in periods with income, because the shares are considered participating securities
under the ASC 260 Update.
(6) Share-Based Compensation Plans
Compensation expense associated with the UAL share-based compensation plans has been pushed down to United.
The following table summarizes the number of awards authorized, issued and available for future grants under the Company’s share-based compensation
plans for management employees and directors as of December 31, 2009:
Employees Directors Total
Authorized 8,339,284 175,000 8,514,284
Granted (6,017,100) (131,327) (6,148,427)
Canceled awards available for reissuance 1,004,221 — 1,004,221
Available for future grants 3,326,405 43,673 3,370,078
The following table provides information related to our share-based compensation plans.
(In millions)
Year Ended
December 31,
2009 2008 2007
Compensation cost:
Restricted stock units $ 10 $ — $ —
Restricted stock 6 18 25
Stock options 5 13 24
Total compensation cost $ 21 $ 31 $ 49
The unrecognized compensation cost related to unvested awards at December 31, 2009 was $22 million. The unrecognized cost of the Company’s RSUs is
expected to be recognized over a weighted-average period of 2.2 years and the unrecognized cost of its stock options and restricted stock are expected to be
recognized over a weighted-average period of 1.6 and 1.0 years, respectively.
2008 Incentive Compensation Plan (“ICP”). In 2008, UAL’s Board of Directors and stockholders approved the ICP. The ICP is an incentive
compensation plan that allows the Company to use different forms of
98