Allegheny Power 2014 Annual Report Download - page 97

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Stock Option Activity Number of Shares
Weighted
Average
Exercise
Price
Balance, January 1, 2014 (1,997,969 options exercisable) 2,359,126 $ 42.59
Options exercised (50,007) 21.58
Options forfeited (869,974) 40.07
Balance, December 31, 2014 (1,077,988 options exercisable) 1,439,145 $ 44.83
Cash received from the exercise of stock options in 2014, 2013 and 2012 was $1 million, $19 million and $50 million, respectively.
The total intrinsic value of options exercised during 2014 was $1 million.
Options outstanding and range of exercise prices as of December 31, 2014, were as follows:
Options Outstanding
Range of
Exercise Prices Shares
Weighted
Average
Exercise
Price
Remaining
Contractual
Life
(in years)
$28.42-$37.74 491,245 $ 35.23 3.98
$37.75-$53.08 667,458 $ 37.87 5.79
$53.09-$81.19 280,442 $ 78.23 2.90
Total 1,439,145 $ 44.83 4.61
The aggregate intrinsic value of stock options outstanding as of December 31, 2014 was $3 million.
Performance Shares
Performance shares are share equivalents and do not have voting rights. The performance shares track the performance of FE's
common stock over a three-year vesting period. During that time, dividend equivalents accrue and at vesting are converted into
additional performance shares. The final account value may be adjusted based on the ranking of FE stock performance to a
composite of peer companies. In 2014, $3 million cash was paid to settle performance share obligations. During 2013 and 2012,
no cash was paid to settle performance shares due to the criteria not being met for the previous three-year vesting period.
401(k) Savings Plan
In 2014, 756,412 shares of FE common stock were issued and contributed to participants' accounts. In 2013 and 2012, approximately
708,000 and 543,600 shares of FE common stock, respectively, were purchased on the market and contributed to participants’
accounts.
EDCP
Under the EDCP, covered employees can direct a portion of their compensation, including annual incentive awards and/or long-
term incentive awards, into unfunded FE stock accounts to receive vested stock units or into an unfunded retirement cash account.
Dividends are calculated quarterly on stock units outstanding and are credited in the form of additional stock units. The form of
payout can vary depending upon the form of the award, the duration of the deferral and other factors. However, as a result of
amendments to the EDCP that were implemented in January 2014 and January 2015 respectively, payments made with respect
to any dividend equivalent units that accrue after January 21, 2014 and any Short-Term Incentive Awards that are deferred after
January 21, 2014 are paid in cash, and effective February 23, 2015, all future contributions to stock accounts directed from
performance share awards will be paid in cash upon the end of the three-year deferral period. Payout of the stock accounts typically
occurs three years from the date of deferral; however, participants may elect to defer their shares into a retirement stock account
that will pay out in cash upon retirement. Interest is calculated on the cash allocated to the cash account and the total balance will
pay out in cash upon retirement.
DCPD
Under the DCPD, members of the Board of Directors can elect to allocate all or a portion of their equity retainers to deferred stock
and their cash retainers, meeting fees and chair fees to deferred stock or deferred cash accounts. The net liability recognized for
DCPD of approximately $8 million and $7 million as of December 31, 2014 and December 31, 2013, respectively, is included in the
caption “Retirement benefits” on the Consolidated Balance Sheets.
The shareholder approved pools for the EDCP and DCPD expired in May 2014, after this date shares for the EDCP and DCPD
have been issued from the ICP shareholder approved pool.