Entergy 2011 Annual Report Download - page 102

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS continued
The following table summarizes information about stock options outstanding as of December 31, 2011:
Stock-based compensation cost related to non-vested stock options outstanding as of December 31, 2011 not yet recognized is approximately
$10 million and is expected to be recognized on a weighted-average period of 1.3 years.
Options Outstanding Options Exercisable
Weighted-
As of Average Remaining Weighted-Average Number Exercisable Weighted-Average
Range of Exercise Prices 12/31/2011 Contractual Life-Yrs. Exercise Price at 12/31/2011 Exercise Price
$37 - $50.99 1,468,761 0.6 $ 43.22 1,468,761 $ 43.22
$51 - $64.99 966,155 2.2 $ 58.58 966,155 $ 58.58
$65 - $78.99 4,911,618 5.8 $ 73.09 3,463,457 $ 71.86
$79 - $91.99 1,627,384 5.1 $ 91.82 1,627,384 $ 91.82
$92 - $108.20 1,485,500 6.1 $ 108.20 1,485,500 $108.20
$37 - $108.20 10,459,418 4.7 $ 75.46 9,011,257 $75.36
Restricted Stock Awards
In January 2011, the Board approved and Entergy granted 166,800
restricted stock awards under the 2007 Equity Ownership and Long-
term Cash Incentive Plan. The grants were made effective as of
January 27, 2011 and were valued at $72.79 per share, which was
the closing price of Entergy’s common stock on that date. One-third
of the restricted stock awards will vest upon each anniversary of
the grant date and are expensed ratably over the three year vesting
period. Shares of restricted stock have the same dividend and
voting rights as other common stock and are considered issued and
outstanding shares of Entergy upon vesting.
The following table includes financial information for restricted
stock for each of the years presented (in millions):
2011 2010 2009
Compensation expense included in
Entergy’s consolidated net income $3.9 $– $–
Tax benefit recognized in Entergy’s
consolidated net income $1.5 $– $–
Compensation cost capitalized as
part of fixed assets and inventory $0.7 $– $–
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 (in millions):
2011 2010 2009
Fair value of long-term incentive
awards as of December 31, $7.3 $10.1 $17.2
Compensation expense included in
Entergy’s consolidated net income
for the year $0.7 $(0.9) $ 5.6
Tax benefit (expense) recognized in
Entergy’s net income for the year $0.3 $(0.4) $ 2.2
Compensation cost capitalized as
part of fixed assets and inventory $0.1 $ 0.1 $ 1.0
Entergy paid $0.7 million in 2011 for awards earned under the Long-
Term Incentive Plan. The distribution is applicable to the 2008 – 2010
performance period.
Restricted Unit Awards
Entergy grants restricted unit 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 unit awards are charged to income over the
restricted period, which varies from grant to grant. The average
vesting period for restricted unit awards granted is 36 months. As of
December 31, 2011, there were 138,965 unvested restricted units that
are expected to vest over an average period of 10 months.
The following table includes financial information for restricted
unit awards for each of the years presented (in millions):
2011 2010 2009
Fair value of restricted awards as of
December 31, $6.6 $8.3 $4.6
Compensation expense included in
Entergy’s consolidated net income $3.7 $3.9 $2.0
Tax benefit recognized in Entergy’s
consolidated net income for the year $1.4 $1.5 $0.8
Compensation cost capitalized as
part of fixed assets and inventory $0.7 $0.9 $0.5
Entergy paid $5.9 million in 2011 for awards under the Restricted
Units Awards Plan.
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