Air Canada 2010 Annual Report Download - page 120

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2010 Air Canada Annual Report
120
Range of
Exercise Prices
Expiry
Dates
2010 Outstanding Options 2010 Exercisable Options
Number
of Options
Outstanding
Weighted
Average
Remaining Life
(Years)
Weighted
Average Exercise
Price/Share
Number of
Exercisable
Options
Weighted
Average Exercise
Price/Share
$ 21.00 2013 566,457 3 $ 21.00 566,457 $ 21.00
$ 11.08 - $ 18.60 2014 345,474 4 14.89 180,404 14.89
$ 8.51 2015 11,000 5 8.51 2,750 8.51
$ 0.97 - $ 1.59 2016 2,315,000 6 1.32 289,375 1.32
$ 1.78 - $ 1.91 2017 50,000 7 1.85 - -

3,287,931 $ 6.17 1,038,986 $ 14.42
Range of
Exercise Prices
Expiry
Dates
2009 Outstanding Options 2009 Exercisable Options
Number
of Options
Outstanding
Weighted
Average
Remaining Life
(Years)
Weighted
Average Exercise
Price/Share
Number of
Exercisable
Options
Weighted
Average Exercise
Price/Share
$ 21.00 2013 1,146,400 4 $ 21.00 429,900 $ 21.00
$ 11.08 - $ 18.60 2014 481,074 5 14.73 120,269 14.73
$ 8.51 2015 11,000 6 8.51 1,375 8.51
$ 0.97 - $ 1.59 2016 2,325,000 7 1.32 - -
3,963,474 $ 8.66 551,544 $ 19.60
Performance Share Units
The Long-term Incentive Plan also includes performance share units (“PSUs”). The vesting term of PSUs is three years and
generally incorporates performance vesting features based upon achievement of earnings targets established over the vesting
period. Subject to vesting and other conditions, each PSU entitles the employee to receive a payment in the form of one
common share, cash in the amount equal to market value of one common share, or a combination thereof, at the discretion
of the Board of Directors. The terms of the plan specify that upon the retirement of an employee, the number of PSUs that
vest are prorated based on the total number of completed months of active service during the PSU vesting term. Certain
PSUs granted may only be redeemed for Air Canada shares purchased on the secondary market and/or equivalent cash at
the discretion of the Board of Directors. The remaining PSUs may be redeemed for Air Canada shares issued from treasury or
purchased on the secondary market and/or equivalent cash at the discretion of the Board of Directors.
The compensation expense related to PSUs in 2010 was $4 (2009 was less than $1).
A summary of the Long-term Incentive Plan performance share unit activity is as follows:
 2010 2009
Beginning of year 1,653,064 1,671,068
Granted 2,532,337 11,591
Forfeited (595,952) (29,595)
Outstanding PSUs, end of year (1) 3,589,449 1,653,064
(1) As at December 31, 2010, all PSUs remain non-vested. Included in the total number of PSUs outstanding, 3,586,949 PSUs will entitle the employee to receive, at the
discretion of the Board of Directors, Air Canada shares purchased on the secondary market and/or equivalent cash (2009 – 1,091,218). As at December 31, 2010, the
liability related to these PSUs is $5.
Refer to Note 15 for a description of derivative instruments used by the Corporation to hedge the cash flow exposure to
the PSUs granted.