Xcel Energy 2013 Annual Report Download - page 118

100
Cash received from stock options exercised and the actual tax benefit realized for the tax deductions from stock options exercised
during the year ended Dec. 31 were as follows:
(Thousands of Dollars) 2011
Cash received from stock options exercised . . . . . . . . . . . . . . . . . . . . . . . . $ 30,381
Tax benefit realized for the tax deductions from stock options exercised. . 157
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 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) 2013 2012 2011
Granted shares . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 33 33 15
Grant date fair value . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 28.30 $ 26.43 $ 23.62
A summary of the changes of nonvested restricted stock for the year ended 2013 were as follows:
(Shares in Thousands) Shares
Weighted
Average
Grant Date
Fair Value
Nonvested restricted stock at Jan. 1, 2013 . . . . . . . . . . . . . . . . . . . . . . . . . 54 $ 24.85
Granted . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 33 28.30
Vested . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (27) 23.65
Dividend equivalents. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 28.88
Nonvested restricted stock at Dec. 31, 2013 . . . . . . . . . . . . . . . . . . . . . . . . 62 27.33
RSUs — 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, such 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, and most granted in 2013
will be measured three years after the grant date, at which time the RSUs, plus associated dividend equivalents, will either be settled
or forfeited. In 2013, approximately 0.2 million RSUs were granted subject to service conditions, but no performance conditions.
Payout of all other 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. These RSUs issued in 2011, 2012
and 2013, plus associated dividend equivalents, will be settled or forfeited and the restricted period will lapse after three years, with
potential payouts ranging from zero to 150 percent, depending on the level of EPS growth.
The performance conditions for the remaining performance-based units are based on environmental goals. These RSUs issued in
2011, 2012 and 2013, plus associated dividend equivalents, will be settled or forfeited and the restricted period will lapse after three
years with potential payouts ranging from zero to 150 percent, depending on the level of environmental performance, based on
established indicators.
The 2010 RSUs measured on EPS growth and all 2009 RSUs met their targets as of Dec. 31, 2011, and were settled in shares in
February 2012. The 2010 environmental RSUs met their targets as of Dec. 31, 2012 and were settled in shares in February 2013. The
2011 RSUs measured on EPS growth and the 2011 environmental RSUs met their targets as of Dec. 31, 2013 and will be settled in
shares in February 2014.