Eversource 2014 Annual Report Download - page 98

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As of December 31, 2014, there was $15.7 million of total unrecognized compensation expense related to nonvested share-based awards for NU, $6.1
million for CL&P, $4.3 million for NSTAR Electric, $2 million for PSNH and $1million for WMECO. This cost is expected to be recognized
ratably over a weighted-average period of 1.65 years for NU, 1.68 years for CL&P, 1.69 years for NSTAR Electric, 1.71 years for PSNH and 1.68
years for WMECO.
For the years ended December 31, 2014 and 2012, additional tax benefits totaling $9.5 million and $8.5 million increased cash flows from financing
activities. For the year ended December 31, 2013, additional tax benefits totaling $5.5 million decreased cash flows from financing activities.
 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, 2014is 4.3 years. A
summary of stock option transactions is as follows:
Weighted Average Intrinsic Value
Options Exercise Price (Millions)
Outstanding and Exercisable -January 1, 2012 47,374 $18.78
Converted NSTAR Options upon Merger 2,664,894 $23.99
Exercised (1,166,511) $22.53 $18.7
Outstanding and Exercisable -December 31, 2012 1,545,757 $24.92
Exercised (324,382) $ 20.97 $6.7
Outstanding and Exercisable -December 31, 2013 1,221,375 $25.97
Exercised (869,759) $25.68 $16.4
Outstanding and Exercisable -December 31, 2014 351,616 $26.69 $9.4
Cash received for options exercised during the year ended December 31, 2014totaled $22.3 million. The tax benefit realized from stock options
exercised totaled $6.6 million for the year ended December 31, 2014.
 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
specified limit. 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 2014, employees purchased 40,779 shares at discounted prices of $41.61 and $41.71. Employees purchased 39,526 shares in 2013at
discounted prices of $38.69 and $42.19. As of December 31, 2014and 2013, 776,975 and 817,754 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.
D. 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 balance sheets, as well as the related expense, are as follows:
NU For the Years Ended December 31,
 2014 2013 2012
Actuarially-Determined Liability $ 57.5 $51.3 $54.6
Other Retirement Benefits Expense 4.5 4.4 4.7
For the Years Ended December 31,
2014 2013 2012
 CL&P
NSTAR
Electric PSNH WMECO CL&P PSNH WMECO CL&P PSNH WMECO
Actuarially-Determined Liability $0.4 $- $2.6 $0.2 $0.4 $2.3 $0.1 $0.4 $2.5 $0.2
Other Retirement Benefits Expense 2.1 0.3 0.9 0.4 2.5 1.0 0.5 2.6 1.0 0.5