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108
Performance Shares: NU had granted performance shares under the annual Long-Term Incentive programs that vested based upon
the extent to which the Company achieved targets at the end of three-year performance measurement periods. Performance shares
are paid in shares, after the performance measurement period. A summary of performance share transactions is as follows:
Performance
Weighted Average
Shares
Grant-Date
(Units)
Fair Value
Outstanding as of January 1, 2010
99,086
$
23.93
Granted 149,520
$ 25.24
Shares issued
-
$
-
Forfeited
(47)
$
23.96
Outstanding as of December 31, 2010
248,559
$
24.72
Granted
244,870
$
33.76
Shares issued
-
$
-
Forfeited
(10,296)
$
30.47
Outstanding as of December 31, 2011
483,133
$
29.18
Granted 225,935
$ 35.09
Converted to RSUs upon Merger
(451,358)
$
34.32
Shares issued
(106,773)
$
24.52
Forfeited
-
$
-
Outstanding as of December 31, 2012
150,937
$
25.04
Upon closing of the merger with NSTAR, 451,358 performance shares under the NU 2011 and 2012 Long-Term Incentive Programs
converted to RSUs according to the terms of these programs. The remaining performance shares were measured based upon a
modified performance period through the date of the merger, in accordance with the terms of the NU 2010 Incentive Program, with
distribution in 2013.
The total compensation cost and associated future income tax benefit recognized by NU, CL&P, NSTAR Electric, PSNH and WMECO
for share-based compensation awards were as follows:
NU
For the Years Ended December 31,
(Millions of Dollars)
2012
2011
2010
Compensation Cost
$
25.8
$
12.3
$
10.5
Future Income Tax Benefit 10.2
4.9
4.2
For the Years Ended December 31,
2012
2011
2010
(Millions of Dollars)
CL&P
NSTAR
Electric
(1)
PSNH
WMECO
CL&P
NSTAR
Electric
(1)
PSNH
WMECO
CL&P
NSTAR
Electric
(1)
PSNH
WMECO
Compensation Cost
$
4.8
$
7.4
$
1.8
$
1.0
$
7.1
$
7.7
$
2.5
$
1.4
$
6.2
$
6.5
$
2.1
$
1.1
Future Income Tax
Benefit
1.9
2.9
0.7
0.4
2.8
3.0
1.0
0.6
2.5
2.6
0.9
0.4
(1) NSTAR Electric amounts are included in NU consolidated from the date of the merger, April 10, 2012, through December 31, 2012.
NSTAR Electric amounts are not included in NU consolidated for the years ended December 31, 2011 and 2010.
As of December 31, 2012, there was $26.1 million of total unrecognized compensation cost related to nonvested share-based awards
for NU, $5.3 million for CL&P, $10.6 million for NSTAR Electric, $1.8 million for PSNH and $1.1 million for WMECO. This cost is
expected to be recognized ratably over a weighted-average period of 1.90 years for NU, 2.03 years for CL&P, 1.76 years for NSTAR
Electric and 1.84 years for PSNH and WMECO.
For the years ended December 31, 2012, 2011 and 2010, additional tax benefits totaling $8.5 million, $1.3 million and $0.9 million,
respectively, increased cash flows from financing activities.