Southwest Airlines 1997 Annual Report Download - page 46

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46
SOUTHWEST AIRLINES CO. ♥ FIVE SYMBOLS OF FREEDOM
Information regarding the Company’s five fixed stock option plans, as adjusted for the
three-for-two stock split on November 26, 1997, is summarized below:
Incentive Plans Non-Qualified Plans
Average Average
Exercise Exercise
Options Price Options Price
Outstanding December 31, 1994 7,217,943 $8.05 532,883 $9.07
Granted — Incentive Plans 1,474,821 12.53 - -
Granted — SWAPA Plan - - 21,790,575 13.33
Granted — Other Non-Qualified
Plans - - 139,973 12.51
Exercised (412,587) 5.67 (90,765) 10.08
Surrendered (462,358) 8.47 (91,562) 13.07
Outstanding December 31, 1995 7,817,819 8.98 22,281,104 13.24
Granted — Incentive Plans 2,505,516 16.79 - -
Granted — SWAPA Plan - - 699,300 15.88
Granted — Other Non-Qualified
Plans - - 103,683 16.78
Exercised (593,772) 6.85 (435,578) 11.93
Surrendered (375,669) 13.44 (142,477) 13.33
Outstanding December 31, 1996 9,353,894 11.03 22,506,032 13.36
Granted — Incentive Plans 2,455,158 14.51 - -
Granted — SWAPA Plan - - 882,000 19.79
Granted — Other Non-Qualified
Plans - - 145,406 14.51
Exercised (1,151,926) 9.04 (1,771,831) 13.27
Surrendered (670,013) 14.58 (99,212) 13.59
Outstanding December 31, 1997 9,987,113 $11.87 21,662,395 $13.63
Exercisable December 31, 1997 2,081,222 7,132,653
Available for granting in future periods 9,244,087 4,853,562
The following table summarizes information about stock options outstanding under
the five fixed option plans at December 31, 1997:
Options Outstanding Options Exercisable
Weighted-
Average Weighted- Weighted-
Range Of Number Remaining Average Number Average
Exercise Outstanding Contractual Exercise Exercisable Exercise
Prices At 12/31/97 Life Price At 12/31/97 Price
$4.01 to $5.21 3,084,861 3.04 yrs. $4.09 993,711 $4.25
$7.56 to $8.04 415,464 4.03 7.97 92,589 7.83
$11.25 to $16.79 26,244,958 8.81 13.73 7,621,620 13.54
$17.29 to $24.96 1,904,225 7.55 19.82 505,955 21.85
$4.01 to $24.96 31,649,508 8.11 yrs. $13.08 9,213,875 $12.93
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.
Depending upon the grant, these options have terms of ten years from the date of grant
or ten years from the date exercisable and vest and become fully exercisable over
three or four years. No options were granted in 1997 or 1995. In 1996, the Company
granted 217,000 options with an exercise price of $1.00 per share and 750,000 options
with an