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Share-based Compensation
 12 Months Ended
Dec. 31, 2018
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]  
Share-based Compensation
Share-based Compensation
The 2013 AAG Incentive Award Plan (the 2013 Plan) provides that awards may be in the form of an option, restricted stock award, restricted stock unit award, performance award, dividend equivalent award, deferred stock award, deferred stock unit award, stock payment award or stock appreciation right. The 2013 Plan initially authorized the grant of awards for the issuance of up to 40 million shares. Any shares underlying awards granted under the 2013 Plan, or any pre-existing US Airways Group plan, that are forfeited, terminate or are settled in cash (in whole or in part) without the delivery of shares will again be available for grant.
Our salaries, wages and benefits expense for the years ended December 31, 2018, 2017 and 2016 included $88 million, $90 million and $102 million, respectively, of share-based compensation costs.
During 2018, 2017 and 2016, we withheld approximately 0.8 million, 1.1 million and 1.4 million shares of AAG common stock, respectively, and paid approximately $37 million, $51 million and $56 million, respectively, in satisfaction of certain tax withholding obligations associated with employee equity awards.
Restricted Stock Unit Awards (RSUs)
We have granted RSUs with service conditions (time vested primarily over three years) and performance conditions. The grant-date fair value of RSUs is equal to the market price of the underlying shares of AAG common stock on the date of grant. For time vested awards, the expense is recognized on a straight-line basis over the vesting period for the entire award. For awards with performance conditions, the expense is recognized based on the expected achievement at each reporting period. Stock-settled RSUs are classified as equity awards as the vesting results in the issuance of shares of AAG common stock.
Stock-settled RSU award activity for all plans for the years ended December 31, 2018, 2017 and 2016 is as follows:
 
Number of Shares
 
Weighted Average Grant Date Fair Value
 
(In thousands)
 
 
Outstanding at December 31, 2015
5,607

 
$
38.08

Granted
2,655

 
41.34

Vested and released
(2,754
)
 
34.83

Forfeited
(321
)
 
40.15

Outstanding at December 31, 2016
5,187

 
$
41.48

Granted
2,309

 
48.58

Vested and released
(2,708
)
 
39.63

Forfeited
(464
)
 
44.48

Outstanding at December 31, 2017
4,324

 
$
46.94

Granted
2,194

 
47.65

Vested and released
(1,999
)
 
44.99

Forfeited
(199
)
 
45.72

Outstanding at December 31, 2018
4,320

 
$
44.29


As of December 31, 2018, there was $111 million of unrecognized compensation cost related to stock-settled RSUs. These costs are expected to be recognized over a weighted average period of one year. The total fair value of stock-settled RSUs vested during the years ended December 31, 2018, 2017 and 2016 was $91 million, $123 million and $107 million, respectively.
American Airlines, Inc. [Member]  
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]  
Share-based Compensation
Share-based Compensation
The 2013 AAG Incentive Award Plan (the 2013 Plan) provides that awards may be in the form of an option, restricted stock award, restricted stock unit award, performance award, dividend equivalent award, deferred stock award, deferred stock unit award, stock payment award or stock appreciation right. The 2013 Plan initially authorized the grant of awards for the issuance of up to 40 million shares. Any shares underlying awards granted under the 2013 Plan, or any pre-existing US Airways Group plan, that are forfeited, terminate or are settled in cash (in whole or in part) without the delivery of shares will again be available for grant.
American’s salaries, wages and benefits expense for the years ended December 31, 2018, 2017 and 2016 included $88 million, $90 million and $102 million, respectively, of share-based compensation costs.
During 2018, 2017 and 2016, AAG withheld approximately 0.8 million, 1.1 million and 1.4 million shares of AAG common stock, respectively, and paid approximately $37 million, $51 million and $56 million, respectively, in satisfaction of certain tax withholding obligations associated with employee equity awards.
Restricted Stock Unit Awards (RSUs)
AAG has granted RSUs with service conditions (time vested primarily over three years) and performance conditions. The grant-date fair value of RSUs is equal to the market price of the underlying shares of AAG common stock on the date of grant. For time vested awards, the expense is recognized on a straight-line basis over the vesting period for the entire award. For awards with performance conditions, the expense is recognized based on the expected achievement at each reporting period. Stock-settled RSUs are classified as equity awards as the vesting results in the issuance of shares of AAG common stock.
Stock-settled RSU award activity for all plans for the years ended December 31, 2018, 2017 and 2016 is as follows:
 
Number of Shares
 
Weighted Average Grant Date Fair Value
 
(In thousands)
 
 
Outstanding at December 31, 2015
5,607

 
$
38.08

Granted
2,655

 
41.34

Vested and released
(2,754
)
 
34.83

Forfeited
(321
)
 
40.15

Outstanding at December 31, 2016
5,187

 
$
41.48

Granted
2,309

 
48.58

Vested and released
(2,708
)
 
39.63

Forfeited
(464
)
 
44.48

Outstanding at December 31, 2017
4,324

 
$
46.94

Granted
2,194

 
47.65

Vested and released
(1,999
)
 
44.99

Forfeited
(199
)
 
45.72

Outstanding at December 31, 2018
4,320

 
$
44.29


As of December 31, 2018, there was $111 million of unrecognized compensation cost related to stock-settled RSUs. These costs are expected to be recognized over a weighted average period of one year. The total fair value of stock-settled RSUs vested during the years ended December 31, 2018, 2017 and 2016 was $91 million, $123 million and $107 million, respectively.