American Airlines 1999 Annual Report Download - page 53

Download and view the complete annual report

Please find page 53 of the 1999 American Airlines annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 67

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67

52
In 1999, 1998 and 1997, the total charge for stock compensation expense included in wages, salaries and benefits expense was
$53 million, $52 million and $67 million, respectively. No compensation expense was recognized for stock option grants under the Plans
since the exercise price was the fair market value of the underlying stock on the date of grant.
Stock option activity was:
Year Ended December 31,
1999 1998 1997
Weighted Weighted Weighted
Average Average Average
Exercise Exercise Exercise
Options Price Options Price Options Price
Outstanding at January 1 4,147,124 $46.60 3,506,774 $38.77 3,663,590 $33.59
Granted 1,539,585 63.19 1,216,720 63.01 895,480 52.28
Exercised (258,875) 68.17 (470,810) 31.82 (985,776) 32.17
Canceled (208,200) 49.96 (105,560) 42.34 (66,520) 33.82
Outstanding at December 31 5,219,634 $52.06 4,147,124 $46.60 3,506,774 $38.77
Exercisable options outstanding at December 31 2,012,889 $40.63 1,586,974 $36.49 1,615,020 $31.32
The following table summarizes information about the stock options outstanding at December 31, 1999:
Weighted Weighted Weighted
Number of Average Average Number of Average
Options Remaining Exercise Options Exercise
Range of Exercise Prices Outstanding Life (years) Price Exercisable Price
$22-$33 671,114 3.38 $29.92 668,614 $29.94
$34-$42 1,093,575 5.92 37.84 744,935 37.68
$43-$52 1,009,400 8.18 50.59 356,240 49.72
$53-$62 1,131,155 9.25 58.77 118,040 58.14
$63-$73 1,314,390 9.08 70.55 125,060 72.94
5,219,634 7.55 $52.06 2,012,889 $40.63
In M ay 1997, in conjunction with the labor agreement reached
between American and members of the APA, the Company estab-
lished the Pilots Stock Option Plan (The Pilot Plan). The Pilot Plan
granted members of the APA the option to purchase 11.5 million
shares of AMR stock at $41.69 per share, $5 less than the average
fair market value of the stock on the date of grant, May 5, 1997.
These shares were exercisable immediately.
Pilot Plan option activity was:
Year Ended December 31,
1999 1998 1997
Outstanding at January 1 5,791,381 7,438,220 –
Granted ––11,500,000
Exercised (371,353) (1,646,839) (4,061,780)
Outstanding at December 31 5,420,028 5,791,381 7,438,220
The weighted-average grant date fair value of all stock option
awards granted during 1999, 1998 and 1997 was $23.17,
$21.15 and $11.00, respectively.
Shares of deferred stock are awarded at no cost to officers
and key employees under the Plans’ Career Equity Program and
will be issued upon the individual’s retirement from AMR or, in
certain circumstances, will vest on a pro rata basis. Deferred stock
activity was:
Year Ended December 31,
1999 1998 1997
Outstanding at January 1 2,401,532 2,457,190 2,394,662
Granted 146,200 185,812 175,500
Issued (122,042) (190,911) (67,340)
Canceled (115,010) (50,559) (45,632)
Outstanding at December 31 2,310,680 2,401,532 2,457,190