Exelon 2014 Annual Report Download - page 258

Combined Notes to Consolidated Financial Statements—(Continued)
(Dollars in millions, except per share data unless otherwise noted)
(a) Excludes 1,535,791 and 1,411,824 of performance share awards issued to retirement-eligible employees as of December 31, 2014 and December 31, 2013,
respectively, as they are fully vested.
(b) Represents performance share awards that vested but were not distributed to retirement-eligible employees during 2014.
The weighted average grant date fair value (per share) of performance share awards granted during the years ended December 31,
2014, 2013 and 2012 was $28.75, $31.55, and $39.71, respectively. During the years ended December 31, 2014, 2013 and 2012,
Exelon settled performance shares with a fair value totaling $27 million, $26 million and $23 million, respectively, of which $13
million, $12 million and $3 million was paid in cash, respectively. As of December 31, 2014, $54 million of total unrecognized
compensation costs related to nonvested performance shares are expected to be recognized over the remaining weighted-average
period of 1.6 years.
The following table presents the balance sheet classification of obligations related to outstanding performance share awards not yet
settled:
December 31,
2014 2013
Current liabilities (a) .................................................................................. $28 $13
Deferred credits and other liabilities (b) .................................................................. 36 24
Common stock ..................................................................................... 33 32
Total ............................................................................................. $97 $69
(a) Represents the current liability related to performance share awards expected to be settled in cash.
(b) Represents the long-term liability related to performance share awards expected to be settled in cash.
20. Earnings Per Share and Equity
Earnings per Share
Diluted earnings per share is calculated by dividing Net income attributable to common shareholders by the weighted average
number of shares of common stock outstanding, including shares to be issued upon exercise of stock options, performance share
awards and restricted stock outstanding under Exelon’s LTIPs considered to be common stock equivalents. The following table sets
forth the components of basic and diluted earnings per share and shows the effect of the stock options, performance share awards
and restricted stock on the weighted average number of shares outstanding used in calculating diluted earnings per share:
Year Ended December 31,
2014 2013 2012
Net income attributable to common shareholders .............................................. $1,623 $1,719 $1,160
Weighted average common shares outstanding—basic ......................................... 860 856 816
Assumed exercise and/or distributions of stock-based awards .................................... 4 4 3
Weighted average common shares outstanding—diluted ........................................ 864 860 819
The number of stock options not included in the calculation of diluted common shares outstanding due to their antidilutive effect was
approximately 17 million in 2014, 20 million in 2013, and 14 million in 2012. The number of equity units related to the PHI merger not
included in the calculation of diluted common shares outstanding due to their antidilutive effect was less than 1 million for the year
ended December 31, 2014 since issuance. Additionally, there were no forward units related to the PHI merger not included in the
calculation of diluted common shares outstanding due to their antidilutive effect for the year ended December 31, 2014 since
issuance. Refer to Note 19—Common Stock for further information regarding the equity units and equity forward units.
Under share repurchase programs, 35 million shares of common stock are held as treasury stock with a cost of $2.3 billion as of
December 31, 2014. In 2008, Exelon management decided to defer indefinitely any share repurchases.
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