Entergy 2009 Annual Report Download - page 136

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Entergy Corporation and Subsidiaries
Notes to Financial Statements
132
Long-Term Incentive Awards
Entergy grants long-term incentive awards earned under its stock benefit plans in the form of performance
units, which are equal to the cash value of shares of Entergy Corporation common stock at the end of the
performance period, which is the last trading day of the year. Performance units will pay out to the extent that the
performance conditions are satisfied. In addition to the potential for equivalent share appreciation or depreciation,
performance units will earn the cash equivalent of the dividends paid during the three-year performance period
applicable to each plan. The costs of incentive awards are charged to income over the three-year period.
The following table includes financial information for the long-term incentive awards for each of the years
presented:
2009 2008 2007
(In Millions)
Fair value of long-term incentive awards as of December 31, $17 $41 $54
Compensation expense included in Entergy's Consolidated
Net Income for the year $6 $20 $35
Tax benefit recognized in Entergy's Consolidated Net Income for the year $2 $8 $14
Compensation cost capitalized as part of fixed assets and inventory $1 $5 $6
Entergy paid $30.6 million in 2009 for awards earned under the Long-Term Incentive Plan. The distribution is
applicable to the 2006 - 2008 performance period.
Restricted Awards
Entergy grants restricted awards earned under its stock benefit plans in the form of stock units that are
subject to time-based restrictions. The restricted units are equal to the cash value of shares of Entergy Corporation
common stock at the time of vesting. The costs of restricted awards are charged to income over the restricted period,
which varies from grant to grant. The average vesting period for restricted awards granted is 40 months. As of
December 31, 2009, there were 234,502 unvested restricted units that are expected to vest over an average period of
22 months.
The following table includes financial information for restricted awards for each of the years presented:
2009 2008 2007
(In Millions)
Fair value of restricted awards as of December 31, $4.6 $7.5 $11.2
Compensation expense included in Entergy's Consolidated Net Income
for the year $2.0 $2.0 $6.5
Tax benefit recognized in Entergy's Consolidated Net Income for the year $0.8 $0.8 $2.5
Compensation cost capitalized as part of fixed assets and inventory $0.5 $0.4 $1.1
Entergy paid $5.1 million in 2009 for awards under the Restricted Awards Plan.
134