Eversource 2014 Annual Report Download - page 97

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 NU granted RSUs under the annual long-term incentive programs that are subject to three-year graded vesting schedules for employees, and
one-year graded vesting schedules, or immediate vesting, for board members. RSUs are paid in shares, reduced by amounts sufficient to satisfy
withholdings for income taxes, subsequent to vesting. A summary of RSU transactions is as follows:
Weighted Average
RSUs Grant-Date
(Units) Fair Value
Outstanding as of January 1, 2012 959,920 $26.36
Granted 614,930 $33.04
Converted NSTAR Awards upon Merger 617,394 $36.79
Converted from NU Performance Shares upon Merger 451,358 $34.32
Shares issued (363,779) $29.05
Forfeited (96,504) $34.97
Outstanding as of December 31, 2012 2,183,319 $31.99
Granted 373,939 $39.56
Shares issued (891,129) $32.15
Forfeited (29,689) $33.75
Outstanding as of December 31, 2013 1,636,440 $33.61
Granted 338,576 $42.27
Shares issued (567,209) $33.48
Forfeited (27,060) $39.62
Outstanding as of December 31, 2014 1,380,747 $35.67
As of December 31, 2014and 2013, the number and weighted average grant-date fair value of unvested RSUs was 1,024,729 and $38.14 per share,
and 1,162,216 and $36.58 per share, respectively. The number and weighted average grant-date fair value of RSUs vested and either paid or deferred
during 2014was 437,887 and $37.36 per share, respectively. As of December 31, 2014, 356,018 RSUs were fully vested and deferred and an
additional 973,493 are expected to vest.
 NU granted performance shares under the annual long-term incentive programs that vest based upon the extent to which
Company goals are achieved 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, 2012 483,133 $29.18
Granted 225,935 $35.09
Converted to RSUs upon Merger (451,358) $34.32
Shares issued (106,773) $24.52
Outstanding as of December 31, 2012 150,937 $25.04
Granted 191,961 $40.96
Shares issued (150,944) $25.04
Forfeited (1,526) $40.93
Outstanding as of December 31, 2013 190,428 $40.96
Granted 193,396 $43.40
Shares issued (2,009) $41.46
Forfeited (6,171) $42.02
Outstanding as of December 31, 2014 375,644 $42.20
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. Performance shares under the NU 2010 Incentive Program were measured based upon a modified
performance period through the date of the merger, in accordance with the terms of the program, and were fully distributed in 2013.
The total compensation expense and associated future income tax benefit recognized by NU, CL&P, NSTAR Electric, PSNH and WMECO for
share-based compensation awards are as follows:
NU
For the Years Ended December 31,
 2014 2013 2012
(1)
Compensation Expense $24.6 $27.0 $25.8
Future Income Tax Benefit 10.3 10.7 10.2
For the Years Ended December 31,
2014 2013 2012
NSTAR NSTAR NSTAR
 CL&P Electric PSNH WMECO CL&P Electric PSNH WMECO CL&P Electric PSNH WMECO
Compensation Expense $8.1 $7.4 $3.0 $1.3 $6.8 $7.5 $2.3 $1.3 $4.8 $7.4 $1.8 $1.0
Future Income Tax Benefit 3.4 3.1 1.3 0.5 2.7 3.0 0.9 0.5 1.9 2.9 0.7 0.4
(1) NSTAR amounts were included in NU beginning April 10, 2012.