American Airlines 2000 Annual Report Download - page 29

Download and view the complete annual report

Please find page 29 of the 2000 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 44

  • 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

27
Stock option activity was:
In May 1997, in conjunction with the labor
agreement reached between American and members
of the Allied Pilots Association (APA), the Company
established 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. In conjunc-
tion with the Sabre spin-off, the exercise price was
adjusted to $17.59 per share. Pilot Plan option activity was:
Year Ended December 31,
200 0 1999 1998
Outstanding at January 1 5 ,420,028 5,791,381 7,438,220
Sabre adjustment 7,421 ,048 ––
Exercised (1 ,85 0,886) (371,353) (1,646,839)
Outstanding at December 31 1 0,990,1 90 5,420,028 5,791,381
The weighted-average grant date fair value of all
stock option awards granted during 2000, 1999 and
1998 was $16.54, $23.17 and $21.15, 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,
200 0 1999 1998
Outstanding at January 1 2,310,680 2,401,532 2,457,190
Sabre adjustment 3,1 65,632 ––
Granted –146,200 185,812
Issued (479 ,1 77) (122,042) (190,911)
Canceled (40,638) (115,010) (50,559)
Outstanding at December 31 4,956,497 2,310,680 2,401,532
The weighted-average grant date fair value of
career equity awards granted during 1999 and 1998 was
$63.54 and $57.77, respectively.
Year Ended December 31,
200 0 1999 1998
Weighted Weighted Weighted
Aver age Average Average
Ex er cise Exercise Exercise
Option s Pr ice Options Price Options Price
Outstanding at January 1 5,21 9,634 $ 52.06 4,147,124 $ 46.60 3,506,774 $ 38.77
Sabre adjustment 7,1 50,899 – –– ––
Granted 6,0 03,1 1 1 30.21 1,539,585 63.19 1,216,720 63.01
Exercised (1 ,55 7,034) 32.85 (258,875) 68.17 (470,810) 31.82
Canceled (247,703) 23 .38 (208,200) 49.96 (105,560) 42.34
Outstanding at December 31 1 6,568,90 7 $ 25.42 5,219,634 $ 52.06 4,147,124 $ 46.60
Exercisable options outstanding at December 31 5,334,44 4 $ 1 9.79 2,012,889 $ 40.63 1,586,974 $ 36.49
The following table summarizes information about the stock options outstanding at December 31, 2000:
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
Under $20 3,073,130 4.21 $ 14.93 2,769,990 $ 14.75
$20–$30 8,113,906 8.26 24.71 1,992,625 23.62
Over $30 5,381,871 9.14 32.48 571,829 30.83
16,568,907 7.79 $ 25.42 5,334,444 $ 19.79