Southwest Airlines 2000 Annual Report Download - page 35

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The Company has 11 fixed option plans that cover various
Employee groups. Under these plans, the Company may
grant up to 127 million shares of common stock, of which
24.6 million shares were available for granting in future
periods as of December 31, 2000. Under plans covered by
collective bargaining agreements, options granted to
Employees generally have terms similar to the term of, and
vest in annual increments over the remaining life of, the
respective collective bargaining agreement. Options granted
to Employees not covered by collective bargaining
agreements have ten-year terms and vest and become fully
exercisable over three, five, or ten years of continued
employment, depending upon the grant type.
Aggregated information regarding the Company’s 11 fixed stock option plans, as adjusted for stock splits, is
summarized below:
COLLECTIVE BARGAINING PLANS OTHER EMPLOYEE PLANS
(In thousands except exercise prices)
OPTIONS
AVERAGE
EXERCISE
PRICE OPTIONS
AVERAGE
EXERCISE
PRICE
Outstanding December 31, 1997 47,211 $ 6.08 24,000 $ 5.29
Granted 2,461 12.98 4,492 11.81
Exercised (3,462) 6.00 (3,861) 4.38
Surrendered (271) 6.17 (1,352) 7.07
Outstanding December 31, 1998 45,939 6.45 23,279 6.60
Granted 1,536 17.55 3,367 18.28
Exercised (2,218) 6.20 (3,292) 4.67
Surrendered (408) 6.49 (1,134) 8.34
Outstanding December 31, 1999 44,849 6.48 22,220 6.92
Granted 3,138 27.34 7,936 20.79
Exercised (5,263) 6.70 (4,944) 5.20
Surrendered (457) 7.73 (974) 13.00
Outstanding December 31, 2000 42,267 $ 8.39 24,238 $ 12.99
Exercisable December 31, 2000 21,881 $ 7.01 5,957 $ 9.31
Available for granting in future periods 7,974 16,658
The following table summarizes information about stock options outstanding under the 11 fixed option plans at
December 31, 2000:
OPTIONS OUTSTANDING OPTIONS EXERCISABLE
RANGE OF
EXERCISE PRICES
OPTIONS
OUTSTANDING
AT 12/31/00
WEIGHTED-
AVERAGE
REMAINING
CONTRACTUAL LIFE
WEIGHTED-
AVERAGE
EXERCISE
PRICE
OPTIONS
EXERCISABLE
AT 12/31/00
WEIGHTED-
AVERAGE
EXERCISE PRICE
$ 1.78 to $ 2.32 675 0.1 yrs $1.90 675 $1.90
$ 3.35 to $ 3.58 321 1.2 3.55 141 3.53
$ 5.00 to $ 8.07 43,476 5.8 6.13 22,261 6.06
$ 8.75 to $13.09 7,216 7.1 11.47 2,720 11.24
$15.15 to $22.61 6,505 8.2 16.96 1,387 17.22
$23.18 to $34.20 8,312 8.8 24.95 654 27.35
$ 1.78 to $34.20 66,505 6.4 yrs $10.07 27,838 $7.51
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 2000, 1999, or
1998. At December 31, 2000, 1999, and 1998, total options
of 4.1 million, 5.0 million, and 5.5 million were outstanding,
respectively. At December 31, 2000, total options of 4.1
million were exercisable at exercise prices ranging from
$1.00 to $6.96 per share. Options for 854,000, 570,000, and
342,000 shares were exercised in 2000, 1999, and 1998,
respectively.
F17