Eversource 2009 Annual Report Download - page 151

FS-66
December 31, 2007. The total compensation cost for these restricted shares had a de minimus impact to NU, CL&P, PSNH and
WMECO for the years ended December 31, 2008 and 2007.
RSUs: NU has granted RSUs under the 2004 through 2009 incentive programs that are subject to three-year and four-year graded
vesting schedules for employees, and one-year graded vesting schedules for board members. RSUs are paid in shares, reduced by
amounts sufficient to satisfy withholdings, subsequent to vesting. A summary of RSU transactions for the year ended December 31,
2009 is as follows:
RSUs
RSUs
(Units)
Weighted
Average
Grant-Date
Fair Value
Total
Grant-Date
Fair Value
(Millions)
Outstanding as of December 31, 2008 912,991 $24.75 $22.6
Granted 347,112 $23.26 $ 8.1
Shares issued (203,888) $25.55 $ 5.2
Forfeited (18,303) $26.26 $ 0.5
Outstanding as of December 31, 2009 1,037,912 $24.07 $25.0
The per share and total weighted average grant-date fair value for RSUs granted was $26.82 and $9.5 million, respectively, and $28.83
and $9.5 million, respectively, for the years ended December 31, 2008 and 2007, respectively. The per share and total weighted
average grant-date fair value for RSUs issued was $21.94 and $5.8 million, respectively, and $19.77 and $3.2 million, respectively, for
the years ended December 31, 2008 and 2007, respectively.
The number and weighted average grant-date fair value of RSUs not vested was 571,673 and $15.2 million, respectively, and 564,036
and $16.2 million, respectively, as of December 31, 2009 and 2008. The number and weighted average grant-date fair value of RSUs
vested during 2009 was 190,119 and $4.9 million, respectively. As of December 31, 2009, 466,237 RSUs were fully vested and
543,089 are expected to vest.
Performance Shares: NU has granted performance shares under the 2009 incentive program that vest based upon the achievement of
Company targets at the end of a three-year performance measurement period. Performance shares are paid in shares, subsequent to
the performance measurement period. A summary of performance share transactions for the year ended December 31, 2009 is as
follows:
Performance Shares
Performance
Shares
(Units)
Weighted
Average
Grant-Date
Fair Value
Total
Grant-Date
Fair Value
(Millions)
Outstanding as of December 31, 2008 - - -
Granted 104,150 $23.93 $2.5
Shares issued - - -
Forfeited (5,064) $23.96 $0.1
Outstanding as of December 31, 2009 99,086 $23.93 $2.4
As of December 31, 2009, 106 percent of performance shares are expected to vest based upon the probable outcome of certain
performance metrics.
The total compensation cost recognized by NU (by CL&P, PSNH and WMECO) for share-based compensation awards was $8.8 million
($5.3 million, $1.7 million and $877 thousand), $6.5 million ($4 million, $1.2 million and $678 thousand) and $6 million ($3.8 million,
$977 thousand and $645 thousand) for the years ended December 31, 2009, 2008 and 2007, respectively. The associated future
income tax benefit recognized was approximately $3.5 million ($2.1 million, $693 thousand and $351 thousand), $2.6 million ($1.6
million, $478 thousand and $271 thousand), and $2.4 million ($1.5 million, $391 thousand and $258 thousand) for the years ended
December 31, 2009, 2008 and 2007, respectively.
As of December 31, 2009, there was $8.5 million of total unrecognized compensation cost related to nonvested share-based awards for
NU, $5.1 million for CL&P, $1.8 million for PSNH and $0.9 million for WMECO. This cost is expected to be recognized ratably over a
weighted-average period of 1.5 years for NU, 1.5 years for CL&P, 1.5 years for PSNH and 1.4 years for WMECO.
Stock Options: Prior to 2003, NU granted stock options to certain employees. The options expire ten years from the date of grant.
These options were fully vested as of December 31, 2005. The fair value of each stock option grant was estimated on the date of grant
using the Black-Scholes option pricing model. The weighted average remaining contractual lives for the options outstanding as of
December 31, 2009 is 1.8 years. A summary of stock option transactions is as follows: