Xcel Energy 2012 Annual Report Download - page 111

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101
The total market value and the total intrinsic value of stock options exercised were as follows for the years ended Dec. 31:
(Thousands of Dollars)
2011
2010
Market value of exercises ................................
............
$
30,761
$
1,087
Intrinsic value of options exercised (a)
................................
380
93
(a) Intrinsic value is calculated as market price at exercise date less the option exercise price.
Cash received from stock options exercised and the actual tax benefit realized for the tax deductions from stock options exercised
during the years ended Dec. 31 were as follows:
(Thousands of Dollars)
2011
2010
Cash received from stock options exercised ............................. $
30,381
$ 1,033
Tax benefit realized for the tax deductions from stock options exercised...
157
40
Restricted Stock — Certain employees may elect to receive shares of common or restricted stock under the Xcel Energy Inc.
Executive Annual Incentive Award Plan. Restricted stock vests and settles in equal annual installments over a three-year period.
Xcel Energy Inc. reinvests dividends on the restricted stock it holds while restrictions are in place. Restrictions also apply to the
additional shares of restricted stock acquired through dividend reinvestment. If the restricted shares are forfeited, the employee is
not entitled to the dividends on those shares. Restricted stock has a fair value equal to the market trading price of Xcel Energy
Inc.’s stock at the grant date.
Xcel Energy Inc. granted shares of restricted stock for the years ended Dec. 31 as follows:
(Shares in Thousands)
2012
2011
2010
Granted shares ................................
.......
33
15
44
Grant date fair value ................................
..
$
26.43
$
23.62
$
20.47
A summary of the changes of nonvested restricted stock for the year ended 2012 were as follows:
(Shares in Thousands)
Shares
Weighted
Average
Grant Date
Fair Value
Nonvested restricted stock at Jan. 1, 2012
..............................
47
$
21.36
Granted................................
.............................
33
26.43
Forfeited................................
............................
(7)
20.47
Vested................................
..............................
(21)
21.22
Dividend equivalents ................................
................
2
27.78
Nonvested restricted stock at Dec. 31, 2012
............................
54
24.85
Restricted Stock Units — Xcel Energy Inc.’s Board of Directors has granted RSUs under the Xcel Energy Inc. 2005 Long-term
Incentive Plan (as amended and restated in 2010). The plan allows the attachment of various performance goals to the RSUs
granted. The performance goals may vary by plan year. At the end of the restricted performance period, the grants will be
awarded if the performance goals are met. If the goals are not achieved by the end of the restricted performance period, all
associated RSUs and dividend equivalents are forfeited.
For RSUs issued in 2010, if the performance criteria have not been met within four years of the grant date, all RSUs, plus
associated dividend equivalents, shall be forfeited. The performance conditions for RSUs granted in 2011 and 2012 will be
measured three years after the grant date, at which time the RSUs, plus associated dividend equivalents, will either be settled or
forfeited. Payout of the RSUs and the lapsing of restrictions on the transfer of units are based on one of two separate performance
criteria.
The performance conditions for a portion of the awarded units are based on EPS growth, with an additional condition that Xcel
Energy Inc.’s annual dividend paid on its common stock remains at a specified amount per share or greater. RSUs issued in 2011
and 2012, plus associated dividend equivalents, will be settled or forfeited and the restricted period will lapse after three years,
with potential payouts ranging from 0 percent to 150 percent, depending on the level of EPS growth.