Air Canada 2013 Annual Report Download - page 127

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2013 Consolidated Financial Statements and Notes
127
The weighted average share price on the date of exercise for options exercised in 2013 was $6.56. There were no options
exercised in 2012.
2013 Outstanding Options 2013 Exercisable Options
Range of Exercise
Prices Expiry Dates
Number of
Options
Outstanding
Weighted
Average
Remaining Life
(Years)
Weighted
Average Exercise
Price/Share
Number of
Exercisable
Options
Weighted
Average Exercise
Price/Share
$11.08 – $18.60 2014 237,661 1 $14.71 237,661 $14.71
$8.51 2015 5,500 2 8.51 5,500 8.51
$0.97 – $1.59 2016 442,500 3 1.30 442,500 1.30
$1.78 – $1.91 2017 31,250 4 1.85 – –
$2.34 2018 2,612,356 5 2.34 577,828 2.34
$0.96 – $1.28 2019 2,698,342 6 0.98 346,112 1.00
$2.49 – $5.69 2020 4,052,085 7 2.95 – –
10,079,694 $ 2.47 1,609,601 $3.61
2012 Outstanding Options 2012 Exercisable Options
Range of Exercise
Prices Expiry Dates
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 315,405 1 $ 21.00 315,405 $ 21.00
$11.08 – $18.60 2014 237,661 2 14.71 237,661 14.71
$8.51 2015 5,500 3 8.51 5,500 8.51
$0.97 – $1.59 2016 2,110,625 4 1.30 1,722,344 1.32
$1.78 – $1.91 2017 50,000 5 1.85 12,500 1.85
$2.34 2018 2,913,400 6 2.34 364,175 2.34
$0.96 – $1.28 2019 2,777,812 7 0.98 – –
8,410,403 $ 2.68 2,657,585 $ 5.01
Performance Share Units
The Long-term Incentive Plan also includes performance share units (“PSUs”), which are accounted for as equity settled
instruments. The vesting term of PSUs is three years and generally includes time based vesting features as well as
performance based vesting features, which are based upon achievement of earnings targets established over the vesting
period. 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. The 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 compensation expense related to PSUs in 2013 was $12 (2012 –$6).
A summary of the Long-term Incentive Plan performance share unit activity is as follows:
2013 2012
Beginning of year 7,255,711 6,115,840
Granted 4,047,136 2,712,230
Settled (1,661,624) (1,095,422)
Forfeited (203,253) (476,937)
Outstanding PSUs, end of year(1) 9,437,970 7,255,711
(1) 1,299,533 PSUs were eligible for vesting as at December 31, 2013, of which all were vested in accordance with the terms of the program. These PSUs which vested in 2013
are planned to be settled in 2014.