CenterPoint Energy 2014 Annual Report Download - page 97

Stock Awards
The weighted-average grant-date fair values per unit of awards granted were as follows for 2014 , 2013 and 2012 :
Valuation Data
The total intrinsic value of awards received by participants was as follows for 2014 , 2013 and 2012 :
The total grant date fair value of performance and stock awards which vested during the years ended December 31, 2014 , 2013 and
2012
was $21 million , $19 million and $19 million , respectively. As of December 31, 2014 , there was $17 million
of total unrecognized
compensation cost related to non-vested performance and stock awards which is expected to be recognized over a weighted-
average period of
1.6 years.
(b) Pension and Postretirement Benefits
CenterPoint Energy maintains a non-
contributory qualified defined benefit pension plan covering substantially all employees, with benefits
determined using a cash balance formula. Under the cash balance formula, participants accumulate a retirement benefit based upon 5%
of
eligible earnings and accrued interest. Participants are 100% vested in their benefit after completing three years of service. In addition to the non-
contributory qualified defined benefit pension plan, CenterPoint Energy maintains unfunded non-
qualified benefit restoration plans which allow
participants to receive the benefits to which they would have been entitled under CenterPoint Energy’s non-
contributory pension plan except for
federally mandated limits on qualified plan benefits or on the level of compensation on which qualified plan benefits may be calculated.
CenterPoint Energy provides certain healthcare and life insurance benefits for retired employees on both a contributory and non-
contributory basis. Employees become eligible for these benefits if they have met certain age and service requirements at retirement, as defined
in the plans. Under plan amendments, effective in early 1999, healthcare benefits for future retirees were changed to limit employer contributions
for medical coverage.
Such benefit costs are accrued over the active service period of employees. The net unrecognized transition obligation is being amortized
over approximately 20 years .
87
Outstanding and Non-Vested Shares
Year Ended December 31, 2014
Shares
(Thousands)
Weighted-
Average
Grant Date
Fair Value
Remaining
Average
Contractual
Life (Years)
Aggregate
Intrinsic
Value (Millions)
Outstanding at December 31, 2013
898
$
18.72
Granted
322
23.89
Forfeited or cancelled
(122
)
21.60
Vested and released to participants
(375
)
17.03
Outstanding at December 31, 2014
723
21.41
1.0
$
17
Year Ended December 31,
2014
2013 2012
Performance awards
$
23.70
$
20.67
$
18.79
Stock awards
23.89
21.53
18.96
Year Ended December 31,
2014
2013 2012
(in millions)
Stock options exercised
$
2
$
4
$
6
Performance awards
24
20
24
Stock awards
10
10
9