ComEd 2013 Annual Report Download - page 227

Thefollowingtable summarizesExelon’s nonvestedstock option activityfor theyear endedDecember 31,2013:
Shares
Weighted Average
Exercise Price
(per share)
Nonvestedat December 31,2012 (a).................................................... 1,960,665 $40.56
Vested ............................................................................. (1,058,804) 40.89
Forfeited ........................................................................... (54,743)39.36
Nonvestedat December 31,2013 (a).................................................... 847,118$40.22
(a) Excludes1,348,913 and2,647,536ofstock options issuedto retirement-eligible employeesasofDecember 31,2013 andDecember 31,2012,respectively, asthey
are fullyvested.
At December 31,2013,$2million oftotal unrecognizedcompensation costsrelatedto nonvestedstock optionsare expectedto be
recognizedover theremainingweighted-average periodof1.6 years.
Restricted Stock Units
Restrictedstock unitsare grantedunder theLTIP withthemajoritybeingsettledinaspecific number ofsharesofcommon stock
after theservicecondition hasbeen met.Thecorrespondingcostofservicesismeasuredbasedon thegrant date fairvalue ofthe
restrictedstock unitissued.
Thevalue oftherestrictedstock unitsisexpensedover therequisite service periodusingthestraight-line method. Therequisite
service periodfor restrictedstock unitsisgenerallythree to fiveyears. However,certainrestrictedstock unitawards becomefully
vestedupon theemployee reachingretirement-eligibility. Thevalue oftherestrictedstock unitsgrantedto retirement-eligible
employeesiseither recognized immediatelyupon thedate ofgrant or through thedate at which theemployee reachesretirement
eligibility. Exelon uses historical data to estimate employee forfeitures, which are comparedto actual forfeitureson a quarterlybasis
andadjustedasnecessary.
Thefollowingtable summarizesExelon’s nonvestedrestrictedstock unitactivityfor theyear endedDecember 31,2013:
Shares
Weighted Average
Grant Date Fair
Value (per share)
Nonvestedat December 31,2012 (a).................................................... 2,029,161$42.12
Granted ............................................................................ 2,828,187 31.06
Vested ............................................................................. (842,439) 42.90
Forfeited ........................................................................... (108,199) 36.37
Undistributedvestedawards(b) ........................................................ (520,013)32.62
Nonvestedat December 31,2013 (a).................................................... 3,386,697 $34.10
(a) Excludes931,628and 686,121 ofrestrictedstock units issuedto retirement-eligible employeesasofDecember 31,2013 andDecember 31,2012,respectively, as
theyare fullyvested.
(b) Representsrestrictedstock unitsthat vestedbut were not distributedto retirement-eligible employeesduring2013.
Theweightedaveragegrant date fairvalue (per share)ofrestrictedstock unitsgrantedfor theyearsendedDecember 31,2013,
2012 and2011 was$31.06, $39.94 and$43.33,respectively. At December 31,2013 and2012,Exelon hadobligationsrelatedto
outstandingrestrictedstock unitsnot yet settledof $77 million and $58 million,respectively, which are includedincommon stock in
Exelon’s ConsolidatedBalanceSheets. For theyearsendedDecember 31,2013,2012 and2011,Exelon settledrestrictedstock
unitswithfairvalue totaling$28million,$25million and$19million,respectively. At December 31,2013, $64 million oftotal
unrecognizedcompensation costsrelatedto nonvestedrestrictedstock unitsare expectedto berecognizedover theremaining
weighted-average periodof2.5 years.
Performance Share Awards
Performanceshare awards are grantedunder theLTIP. The 2013 and2012 performanceshare awards are beingsettled50%in
common stock and50%incash at theendofthethree-year performance periodexcept for awards grantedto executivevice
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