Entergy 2012 Annual Report Download - page 97

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Entergy Corporation and Subsidiaries 2012
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS continued
A summary of stock option activity for the year ended December 31, 2012 and changes during the year are presented below:
The weighted-average grant-date fair value of options granted during the year was $11.48 for 2011 and $13.18 for 2010. The total intrinsic
value of stock options exercised was $39.8 million during 2012, $29.6 million during 2011, and $36.6 million during 2010. The intrinsic value,
which has no effect on net income, of the stock options exercised is calculated by the difference in Entergy Corporation’s common stock price
on the date of exercise and the exercise price of the stock options granted. Because Entergy’s year-end stock price is less than the weighted aver-
age exercise price, the aggregate intrinsic value of outstanding stock options as of December 31, 2012 was zero. The intrinsic value of “in the
money” stock options is $7.8 million as of December 31, 2012. Entergy recognizes compensation cost over the vesting period of the options
based on their grant-date fair value. The total fair value of options that vested was approximately $11 million during 2012, $16 million during
2011, and $21 million during 2010.
Options outstanding as of January 1, 2012
Options granted
Options exercised
Options forfeited/expired
Options outstanding as of December 31, 2012
Options exercisable as of December 31, 2012
Weighted-average grant-date fair value of options granted during 2012
Weighted-Average Aggregate Weighted-Average
Number of Options Exercise Price Intrinsic Value Contractual Life
10,459,418 $75.46
552,400 $71.30
(1,407,159) $44.46
(46,313) $76.83
9,558,346 $79.77 $ – 4.6 years
8,442,157 $80.61 $ – 5.1 years
$9.42
The following table summarizes information about stock options outstanding as of December 31, 2012:
Stock-based compensation cost related to non-vested stock options outstanding as of December 31, 2012 not yet recognized is approximately
$5.2 million and is expected to be recognized over a weighted-average period of 1.6 years.
Options Outstanding Options Exercisable
Weighted-
As of Average Remaining Weighted-Average Number Exercisable Weighted-Average
Range of Exercise Prices 12/31/2012 Contractual Life-Yrs. Exercise Price at 12/31/2012 Exercise Price
$37 - $50.99 177,046 0.1 $ 44.45 177,046 $ 44.45
$51 - $64.99 858,997 1.2 $ 58.60 858,997 $ 58.60
$65 - $78.99 5,419,319 5.3 $ 72.91 4,303,130 $ 72.77
$79 - $91.99 1,622,984 4.1 $ 91.82 1,622,984 $ 91.82
$92 - $108.20 1,480,000 5.1 $108.20 1,480,000 $108.20
$37 - $108.20 9,558,346 4.6 $ 79.77 8,442,157 $ 80.61
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