American Airlines 2008 Annual Report Download - page 77

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74
9. Share Based Compensation (Continued)
2008
2007
2006
Expected volatility
53.0% to 55.9%
49.7% to 51.6%
52.5% to 55.0%
Expected term (in years)
4.0
4.0
4.0
Risk-free rate
2.98% to 3.15%
4.43% to 5.03%
4.35% to 5.07%
Annual forfeiture rate
10.0%
10.0%
10.0%
A summary of stock option/SSARs activity under the LTIP Plans and the 2003 Plan as of December 31, 2008, and
changes during the year then ended is presented below:
LTIP Plans
The 2003 Plan
Options/SSARs
Weighted
Average
Exercise
Price
Options
Weighted
Average
Exercise
Price
Outstanding at January 1
11,844,615
$ 27.76
14,276,053
$ 5.66
Granted
2,722,740
8.23
-
-
Exercised
(500)
4.25
(347,057)
5.25
Forfeited or Expired
(760,907)
28.26
(119,004)
6.83
Outstanding at December 31
13,805,948
23.88
13,809,992
5.66
Exercisable at December 31
9,714,226
28.48
13,491,727
5.52
Weighted Average Remaining
Contractual Term of Options
Outstanding (in years)
4.3
4.4
Aggregate Intrinsic Value of
Options Outstanding
$ 7,605,694
$ 70,509,340
The aggregate intrinsic value of all vested options/SSARs is $71 million and those options have an average
remaining contractual life of 3.6 years. The weighted-average grant date fair value of options/SSARs granted
during 2008, 2007 and 2006 was $3.78, $12.63 and $10.93, respectively. The total intrinsic value of
options/SSARs exercised during 2008, 2007 and 2006 was $2 million, $193 million and $350 million, respectively.
A summary of the status of the Company’s non-vested options/SSARs under all plans as of December 31, 2008,
and changes during the year ended December 31, 2008, is presented below:
Weighted
Options/SSARs
Average
Grant Date Fair
Value
Outstanding at January 1
2,965,521
$ 8.07
Granted
2,722,740
3.78
Vested
(1,260,844)
6.55
Forfeited
(17,430)
4.78
Outstanding at December 31
4,409,987
5.87