Xcel Energy 2009 Annual Report Download - page 119

The PSP awards have been historically settled partially in cash, and therefore, do not qualify as an equity award, but
rather are accounted for as a liability award. As liability awards, the fair value on which ratable expense is based, as
employees vest in their rights to those awards, is remeasured each period based on the current stock price and
performance conditions, and final expense is based on the market value of the shares on the date the award is settled.
The compensation costs related to share-based awards for the years ended Dec. 31 were as follows:
2009 2008 2007
(Thousands of Dollars)
Compensation cost for share-based awards(a)(b) ............... $29,672 $23,912 $24,900
Tax benefit recognized in income ....................... 11,471 9,241 9,661
Total compensation cost capitalized ...................... 3,636 3,666 3,697
(a) Compensation costs for share-based payment arrangements is included in other O&M expense in the consolidated statements of income.
(b) Included in compensation cost for share-based awards are matching contributions related to the Xcel Energy 401(k) plan, which totaled $19.3 million,
$18.6 million and $15.2 million for the years ended 2009, 2008 and 2007, respectively.
The maximum aggregate number of shares of common stock available for issuance under the Xcel Energy Omnibus
Incentive Plan, approved in 2000, is 14.5 million, and 8.3 million shares were approved for issuance under the Xcel
Energy 2005 Omnibus Incentive Plan. Under the Executive Annual Incentive Plan approved in 2000, the total number
of shares approved for issuance is 1.5 million, and 1.2 million shares were approved for issuance under the Executive
Annual Incentive Plan in 2005.
As of Dec. 31, 2009 and 2008, there was approximately $17.9 million and $14.9 million, respectively, of total
unrecognized compensation cost related to non-vested share-based compensation awards. Xcel Energy expects to
recognize that cost over a weighted-average period of 1.88 years.
The amount of cash used to settle Xcel Energy’s PSP awards was $2.6 million and $3.1 million in 2009 and 2008,
respectively.
Cash received from stock options exercised and actual tax benefit realized for the tax deductions from stock options
exercised during the years ended Dec. 31 were as follows:
2009 2008 2007
(Thousands of Dollars)
Cash received from stock options exercised .............................. $15,759 $214 $5,266
Tax benefit realized for the tax deductions from stock options exercised ............ 277 — —
11. Benefit Plans and Other Postretirement Benefits
Xcel Energy offers various benefit plans to its employees. Approximately 50 percent of employees that receive benefits
are represented by several local labor unions under several collective-bargaining agreements. At Dec. 31, 2009:
• NSP-Minnesota had 2,119 and NSP-Wisconsin had 405 bargaining employees covered under a collective-
bargaining agreement, which expires at the end of 2010. NSP-Minnesota also had an additional 222 nuclear
operation bargaining employees covered under several collective-bargaining agreements, which expire at various
dates through September 2010.
• PSCo had 2,124 bargaining employees covered under a collective-bargaining agreement, which expires in May
2014.
• SPS had 795 bargaining employees covered under a collective-bargaining agreement, which expires in October
2011.
Effective Jan. 1, 2009, Xcel Energy adopted new guidance on employers’ disclosures about pension and postretirement
benefit plan assets. The new guidance expands employers’ disclosure requirements for benefit plan assets, including
investment policies and strategies, major categories of plan assets, and information regarding fair value measurements
consistent with the disclosures for entities’ recurring fair value measurements prescribed by ASC 820 Fair Value
Measurements.
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