Dominion Power 2003 Annual Report Download - page 82

80.Dominion 2003
Notes to Consolidated Financial Statements, Continued
20. Shareholders’ Equity
Issuance of Common Stock
During 2003, Dominion issued 17 million shares of common
stock and received proceeds of $990 million. Of this amount,
11 million shares and proceeds of $683 million resulted from a
public offering. Net proceeds were used for general corporate
purposes, principally repayment of debt. The remainder of the
shares issued and proceeds received in 2003 occurred through
Dominion Direct®(a dividend reinvestment and open enrollment
direct stock purchase plan), employee savings plans and the
exercise of employee stock options.
Repurchases of Common Stock
Dominion is authorized by its Board of Directors to repurchase up
to $650 million of Dominion common stock outstanding. As of
December 31, 2003, Dominion had repurchased approximately
12 million shares for $537 million.
Shares Reserved for Issuance
At December 31, 2003, a total of 76 million shares was reserved
and available for issuance pursuant to Dominion Direct®, various
employee and director stock award and savings plans, stock pur-
chase contracts associated with equity-linked debt securities and
Dominion’s Series A Mandatorily Convertible Preferred Stock. See
Notes 9 and 18 for a discussion of Dominion’s issuance of
665,000 shares of Series A Mandatorily Convertible Preferred
Stock, liquidation preference $1,000 per share to Piedmont Share
Trust, in connection with DFV.
Accumulated Other Comprehensive Income
Presented in the table below is a summary of accumulated other
comprehensive income by component:
At December 31, 2003 2002
(millions)
Net unrealized losses on derivatives — hedging activities $(768) $(356)
Net unrealized gains (losses) on investment securities 89 (72)
Minimum pension liability adjustment (14) (14)
Foreign currency translation adjustments 64 (4)
Total accumulated other comprehensive loss $(629) $(446)
Stock-Based Awards
The following table provides a summary of changes in amounts
of Dominion stock options outstanding as of and for the years
ended December 31, 2003, 2002 and 2001. Generally, the exer-
cise price of Dominion employee stock options equals the market
price of Dominion common stock on the date of grant.
Weighted- Weighted-
Stock average average
Options Exercise Price Fair Value
(thousands)
Outstanding at
December 31, 2000 10,331 $41.77
Exercisable at
December 31, 2000 6,967 $41.51
Granted — 2001(1)
Exercise price < market price
on grant date 480 $33.21 $23.69
Exercise price = market price
on grant date 11,471 $61.20 $11.24
Exercise price > market price
on grant date 194 $62.27 $ 9.43
Exercised, cancelled
and forfeited (1,484) $41.23
Outstanding at
December 31, 2001 20,992 $52.90
Exercisable at
December 31, 2001 7,955 $42.68
Granted — 2002 3,122 $62.28 $10.91
Exercised, cancelled
and forfeited (3,057) $44.54
Outstanding at
December 31, 2002 21,057 $55.49
Exercisable at
December 31, 2002 8,586 $47.95
Exercised, cancelled
and forfeited (2,513) $44.39
Outstanding at
December 31, 2003 18,544 $56.97
Exercisable at
December 31, 2003 11,604 $54.44
(1) In connection with the acquisition of Louis Dreyfus, employee stock options of
Louis Dreyfus were converted into employee stock options of Dominion. Based
on the conversion formula, certain converted stock options had exercise prices
that either exceeded or were less than the market price of Dominion common
stock on the date of grant. The fair value of all converted stock options was
included in the purchase price of Louis Dreyfus.