American Airlines 2003 Annual Report Download - page 70

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68
9. Stock Awards and Options (Continued)
The weighted-average grant date fair value per share of all stock option awards granted during 2003, 2002 and
2001 was $2.32, $11.42 and $12.23, respectively.
Shares of deferred stock are awarded at no cost to officers and key employees under the LTIP 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,
2003 2002 2001
Outstanding at January 1 3,596,508 4,785,712 4,956,497
Granted - - -
Issued (858,262) (1,091,149) (98,566)
Canceled (275,185) (98,055) (72,219)
Outstanding at December 31 2,463,061 3,596,508 4,785,712
A performance share plan was implemented in 1993 under the terms of which shares of deferred stock are
awarded at no cost to officers and key employees under the LTIP Plans and, in 2003, under the 2003 Plan. The
fair value of the performance shares granted is equal to the market price of the Company’s stock at the date of
grant. The shares vest over a three-year performance period based upon certain specified financial measures of
the Company. Performance share activity was:
Year Ended December 31,
2003 2002 2001
Outstanding at January 1 1,230,104 2,486,802 2,507,755
Granted 512,885 507,350 913,422
Issued - (178,596) (194,128)
Awards settled in cash - (495,897) (706,302)
Canceled (172,491) (1,089,555) (33,945)
Outstanding at December 31 1,570,498 1,230,104 2,486,802
The weighted-average grant date fair value per share of performance share awards granted during 2003, 2002
and 2001 was $10.50, $25.98 and $28.27, respectively.
In 2003, 2002 and 2001, the total charge for stock compensation expense included in wages, salaries and benefits
expense, primarily related to the Company’s performance share plan, was $20 million, $9 million and $21 million,
respectively. No compensation expense was recognized for stock option grants under the LTIP Plans or the 2003
Plan, since the exercise price was equal to the fair market value of the underlying stock on the date of grant.