Exelon 2014 Annual Report Download - page 256

Combined Notes to Consolidated Financial Statements—(Continued)
(Dollars in millions, except per share data unless otherwise noted)
The following table presents information with respect to stock option activity for the year ended December 31, 2014:
Shares
Weighted
Average
Exercise
Price
(per
share)
Weighted
Average
Remaining
Contractual
Life
(years)
Aggregate
Intrinsic
Value
Balance of shares outstanding at December 31, 2013 ....................... 21,035,445 $46.07
Options exercised .................................................... (291,805) 25.27
Options forfeited ...................................................... (8,886) 55.78
Options expired ...................................................... (1,903,787) 41.47
Balance of shares outstanding at December 31, 2014 ....................... 18,830,967 $46.85 4.11 $29
Exercisable at December 31, 2014 (a) .................................... 18,398,932 $47.01 4.04 $29
(a) Includes stock options issued to retirement eligible employees.
The following table summarizes additional information regarding stock options exercised for the years ended December 31, 2014,
2013 and 2012:
Year Ended
December 31,
2014 2013 2012
Intrinsic value (a) ................................................................................ $3 $ 4 $19
Cash received for exercise price .................................................................. 7 19 47
(a) The difference between the market value on the date of exercise and the option exercise price.
The following table summarizes Exelon’s nonvested stock option activity for the year ended December 31, 2014:
Shares
Weighted Average
Exercise Price
(per share)
Nonvested at December 31, 2013 (a) ...................................................... 847,118 $40.22
Vested .............................................................................. (406,197) 40.21
Forfeited ............................................................................. (8,886) 55.78
Nonvested at December 31, 2014 (a) ...................................................... 432,035 $39.91
(a) Excludes 746,140 and 1,348,913 of stock options issued to retirement-eligible employees as of December 31, 2014 and December 31, 2013, respectively, as they
are fully vested.
At December 31, 2014, $1 million of total unrecognized compensation costs related to nonvested stock options are expected to be
recognized over the remaining weighted-average period of 1.0 year.
Restricted Stock Units
Restricted stock units are granted under the LTIP with the majority being settled in a specific number of shares of common stock
after the service condition has been met. The corresponding cost of services is measured based on the grant date fair value of the
restricted stock unit issued.
The value of the restricted stock units is expensed over the requisite service period using the straight-line method. The requisite
service period for restricted stock units is generally three to five years. However, certain restricted stock unit awards become fully
vested upon the employee reaching retirement-eligibility. The value of the restricted stock units granted to retirement-eligible
employees is either recognized immediately upon the date of grant or through the date at which the employee reaches retirement
eligibility. Exelon uses historical data to estimate employee forfeitures, which are compared to actual forfeitures on a quarterly basis
and adjusted as necessary.
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