Eversource 2012 Annual Report Download - page 122

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109
Stock Options: Stock options were granted under the NU and NSTAR Incentive Plans. Options currently outstanding expire ten years
from the date of grant and are fully vested. The weighted average remaining contractual lives for the options outstanding as of
December 31, 2012 is 4.8 years. A summary of stock option transactions is as follows:
Weighted Average Intrinsic Value
Options
Exercise Price (Millions)
Outstanding and Exercisable - January 1, 2010
225,216
$
18.96
Exercised
(112,617)
$
19.12
$
1.0
Forfeited and Cancelled
-
$
-
Outstanding and Exercisable - December 31, 2010
112,599
$ 18.80
Exercised
(65,225)
$
18.81
$
1.0
Forfeited and Cancelled
-
$
-
Outstanding and Exercisable - December 31, 2011
47,374
$
18.78
Converted NSTAR Options upon Merger
2,664,894
$
23.99
Exercised
(1,166,511)
$
22.53
$
18.7
Forfeited and Cancelled
-
$
-
Outstanding and Exercisable - December 31, 2012
1,545,757
$
24.92
$
21.9
Cash received for options exercised during the year ended December 31, 2012 totaled $26.3 million. The tax benefit realized from
stock options exercised totaled $7.5 million for the year ended December 31, 2012.
Employee Share Purchase Plan: NU maintains an ESPP for eligible employees, which allows for NU common shares to be purchased
by employees at the end of successive six-month offering periods at 95 percent of the closing market price on the last day of each six-
month period. Employees are permitted to purchase shares having a value not exceeding 25 percent of their compensation as of the
beginning of the offering period up to a limit of $25,000 per annum. The ESPP qualifies as a non-compensatory plan under accounting
guidance for share-based payments, and no compensation expense is recorded for ESPP purchases.
During 2012, employees purchased 39,422 shares at discounted prices of $33.01 and $37.89. Employees purchased 35,476 shares in
2011 at discounted prices of $31.27 and $32.30. As of December 31, 2012 and 2011, 857,280 and 896,702 shares, respectively,
remained available for future issuance under the ESPP.
An income tax rate of 40 percent is used to estimate the tax effect on total share-based payments determined under the fair value-
based method for all awards. The Company generally settles stock option exercises and fully vested RSUs and performance shares
with either the issuance of new common shares or the issuance of common shares purchased in the open market.
E. Other Retirement Benefits
NU provides benefits for retirement and other benefits for certain current and past company officers of NU, including CL&P, PSNH and
WMECO. These benefits are accounted for on an accrual basis and expensed over the service lives of the employees. The
actuarially-determined liability for these benefits, which is included in Other Long-Term Liabilities on the accompanying consolidated
balance sheets, as well as the related expense, were as follows:
NU
For the Years Ended December 31,
(Millions of Dollars)
2012
2011
2010
Actuarially-Determined Liability
$
54.6
$
52.8
$
49.9
Other Retirement Benefits Expense
4.7
4.7
4.2
For the Years Ended December 31,
2012
2011
2010
(Millions of Dollars)
CL&P
PSNH
WMECO
CL&P
PSNH
WMECO
CL&P
PSNH
WMECO
Actuarially-Determined Liability
$
0.4
$
2.5
$
0.2
$
1.2
$
2.5
$
0.2
$
0.4
$
2.4
$
0.2
Other Retirement Benefits Expense
2.6
1.0
0.5
2.6
1.0
0.5
2.3
0.9
0.4