American Airlines 2012 Annual Report Download - page 90

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Table of Contents
the year then ended is presented below:
LTIP Plans
The 2003 Plan
Options/SARs
Weighted
Average
Exercise
Price
Options
Weighted
Average
Exercise
Price
Outstanding at January 1
13,809,841
$10.31
13,082,905
$5.66
Granted
—
—
—
—
Exercised
—
—
—
—
Forfeited or Expired
(2,539,779)
17.22
(403,549)
9.02
Outstanding at December 31
11,270,062
$8.75
12,679,356
$5.55
Exercisable at December 31
6,611,656
$10.44
12,679,356
$5.55
Weighted Average Remaining Contractual Term of Options
Outstanding (in years)
6.3
0.4
Aggregate Intrinsic Value of Options Outstanding
$ —
$ —
There is no intrinsic value of vested options/SARs at December 31, 2012. The weighted-average grant date fair value of options/SARs granted during 2011
and 2010 was $3.59 and $3.97, respectively. The total intrinsic value of options/SARs exercised 2011 and 2010 was less than $1 million and $1 million,
respectively.
A summary of the status of the Company’s non-vested options/SARs under all plans as of December 31, 2012, and changes during the year ended
December 31, 2012, is presented below:
Options/SARs
Weighted
Average
Grant Date Fair
Value
Outstanding at January 1
7,468,019
$3.59
Granted
—
—
Vested
(2,022,036)
3.89
Forfeited
(787,577)
3.54
Outstanding at December 31
4,658,406
$3.47
As of December 31, 2012, there was $6 million of total unrecognized compensation cost related to non-vested stock options/SARs granted under the LTIP
Plans and the 2003 Plan that is expected to be recognized over a weighted-average period of 2.5 years. The total fair value of stock options/SARs vested during
the years ended December 31, 2012, 2011 and 2010, was $5 million, $7 million and $11 million, respectively.
The Company received no cash from exercise of stock options for the year ended December 31, 2012 and received $1 million for the years ended December
31, 2011 and 2010. No tax benefit was realized as a result of stock options/SARs exercised in 2012 due to the tax valuation allowance discussed in Note 9.
settled on the vesting date. The number of awards ultimately issued under performance share awards is contingent on AMR’s relative stock price performance
compared to certain of its competitors over a three year period and can range from zero to 175 percent of the awards granted. The fair value of performance
awards is calculated by multiplying the stock price on the date of grant by the expected payout percentage and the number of shares granted.
Activity during 2012 for performance awards accounted for as equity awards was:
90