Southwest Airlines 1996 Annual Report Download - page 44

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44
The following table summarizes information about fixed stock options outstanding under
the fixed option plans at December 31, 1996:
OPTIONS OUTSTANDING
RANGE OF EXERCISE
PRICES
NUMBER
OUTSTANDING AT
12/31/96
WEIGHTED-
AVERAGE
REMAINING
CONTRACTUAL LIFE
WEIGHTED-
AVERAGE EXERCISE
PRICE
$6.02 to $7.81 2,487,991 4.05 yrs. $6.12
$11.33 to $16.87 326,591 5.09 12.02
$18.81 to $27.19 18,248,078 8.09 20.71
$35.69 to $37.44 177,290 7.02 37.29
$6.02 to $37.44 21,239,950 7.56 yrs. $19.01
OPTIONS EXERCISABLE
RANGE OF EXERCISE
PRICES
NUMBER
EXERCISABLE AT
12/31/96
WEIGHTED-
AVERAGE EXERCISE
PRICE
$6.02 to $7.81 682,231 $6.39
$11.33 to $16.87 71,291 12.07
$18.81 to $27.19 4,572,348 20.33
$35.69 to $37.44 162,290 37.40
$6.02 to $37.44 5,488,160 $18.99
The Company has granted options to purchase the Company’s common stock related to
employment contracts with the Company’s president and chief executive officer. These options
have terms of ten years from the date of grant or ten years from the date exercisable, depending
upon the grant. The options vest and become fully exercisable over three or four years. In 1996,
the Company granted 144,395 options with an exercise price of $1.00 per share and 500,000
options with an exercise price of $23.50 per share related to the 1996 employment agreement.
None of the 1996 options granted were exercised in 1996; however, 128,879 options were
exercisable at December 31, 1996. At December 31, 1996, 1995, and 1994, 1,897,898,
1,422,253, and 1,489,753 total options were outstanding, respectively. Exercise prices range
from $1.00 to $23.50 per share. Options for 168,750, 67,500, and 15,000 shares were exercised
in 1996, 1995, and 1994, respectively.
Under the 1991 Employee Stock Purchase Plan (ESPP), at December 31, 1996, the
Company is authorized to issue up to a balance of 1,183,236 shares of common stock to
Employees of the Company at a price equal to 90 percent of the market value at the end of each
purchase period. Common stock purchases are paid for through periodic payroll deductions.