Southwest Airlines 2004 Annual Report Download - page 62

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SOUTHWEST AIRLINES CO.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS Ì (Continued)
12. Common Stock
The Company has one class of common stock. not subject to collective bargaining agreements (other
Holders of shares of common stock are entitled to Employee plans). None of the collective bargaining
receive dividends when and if declared by the Board of plans were required to be approved by shareholders.
Directors and are entitled to one vote per share on all Options granted to Employees under collective bargain-
matters submitted to a vote of the shareholders. At ing plans are granted at or above the fair market value of
December 31, 2004, the Company had 241 million the Company's common stock on the date of grant, and
shares of common stock reserved for issuance pursuant generally have terms ranging from six to twelve years.
to Employee stock beneÑt plans (of which 43 million Vesting terms diÅer based on the grant made, and have
shares have not yet been granted.) ranged in length from immediate vesting to vesting
periods in accordance with the period covered by the
In January 2004, the Company's Board of Direc- respective collective bargaining agreement. Neither Ex-
tors authorized the repurchase of up to $300 million of ecutive OÇcers nor members of the Company's Board
the Company's common stock, utilizing present and of Directors are eligible to participate in any of these
anticipated proceeds from the exercise of Employee collective bargaining plans. Options granted to Employ-
stock options. Repurchases will be made in accordance ees through other Employee plans are granted at the fair
with applicable securities laws in the open market or in market value of the Company's common stock on the
private transactions from time to time, depending on date of grant, have ten-year terms, and vest and become
market conditions. During 2004, the Company repur- fully exercisable over three, Ñve, or ten years of contin-
chased approximately 17.0 million of its common shares ued employment, depending upon the grant type. All of
for a total of approximately $246 million. the options included under the heading of ""Other
Employee Plans'' have been approved by shareholders,
13. Stock Plans except the plan covering non-management, non-con-
The Company has stock plans covering Employees tract Employees, which had 6.8 million options out-
subject to collective bargaining agreements (collective standing to purchase the Company's common stock as
bargaining plans) and stock plans covering Employees of December 31, 2004.
44