CenterPoint Energy 2012 Annual Report Download - page 92

Download and view the complete annual report

Please find page 92 of the 2012 CenterPoint Energy annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 132

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110
  • 111
  • 112
  • 113
  • 114
  • 115
  • 116
  • 117
  • 118
  • 119
  • 120
  • 121
  • 122
  • 123
  • 124
  • 125
  • 126
  • 127
  • 128
  • 129
  • 130
  • 131
  • 132

70
Compensation costs for the performance and stock awards granted under LTIPs are measured using fair value and expected
achievement levels on the grant date. For performance awards with operational goals, the achievement levels are revised as goals
are evaluated. The fair value of awards granted to employees is based on the closing stock price of CenterPoint Energy’s common
stock on the grant date. The compensation expense is recorded on a straight-line basis over the vesting period. Forfeitures are
estimated on the date of grant based on historical averages.
The following tables summarize CenterPoint Energy’s LTIP activity for 2012:
Stock Options
Outstanding Options
Year Ended December 31, 2012
Shares
(Thousands)
Weighted-
Average
Exercise Price
Remaining
Average
Contractual
Life (Years)
Aggregate
Intrinsic
Value
(Millions)
Outstanding at December 31, 2011.................................................. 965 $ 8.28
Exercised ....................................................................................... (506) 6.86
Outstanding at December 31, 2012.................................................. 459 9.84 0.9 $ 4
Exercisable at December 31, 2012................................................... 459 9.84 0.9 4
Cash received from stock options exercised was $9 million, $5 million and $3 million for 2010, 2011 and 2012, respectively.
CenterPoint Energy has not issued stock options since 2004.
Performance Awards
Outstanding and Non-Vested Shares
Year Ended December 31, 2012
Shares
(Thousands)
Weighted-
Average
Grant Date
Fair Value
Remaining
Average
Contractual
Life (Years)
Aggregate
Intrinsic
Value
(Millions)
Outstanding at December 31, 2011.................................................. 3,298 $ 13.99
Granted .......................................................................................... 950 18.79
Forfeited or cancelled.................................................................... (164) 14.78
Vested and released to participants................................................ (1,092) 12.42
Outstanding at December 31, 2012.................................................. 2,992 16.05 1.0 $ 42
The outstanding and non-vested shares displayed in the table above assumes that shares are issued at the maximum performance
level. The aggregate intrinsic value reflects the impact of current expectations of achievement and stock price.