Xcel Energy 2007 Annual Report Download - page 104

Range of Exercise Prices
$15.94 to $26.01 to $30.01 to
$26.00 $30.00 $51.25
Options outstanding and exercisable:
Number outstanding and exercisable ................... 3,060,850 5,504,321 982,156
Weighted average remaining contractual life (years) .......... 3.2 2.5 2.3
Weighted average exercise price ....................... $ 23.72 $ 26.95 $ 39.32
The total fair value of stock options exercised and the total intrinsic value of options exercised during the years ended
Dec. 31, 2007, 2006, 2005 are as follows:
2007 2006 2005
(Thousands of Dollars)
Fair value of stock options exercised ..................... $6,398 $12,108 $2,906
Intrinsic value of options exercised(a) ..................... 1,293 1,795 281
(a) Intrinsic value is calculated as market price at exercise date less the option exercise price
Restricted Stock — Certain employees may elect to receive shares of common or restricted stock under the Xcel Energy
Executive Annual Incentive Award Plan. Restricted stock vests in equal annual installments over a three-year period.
Xcel Energy reinvests dividends on the restricted stock it holds while restrictions are in place. Restrictions also apply to
the additional shares of restricted stock acquired through dividend reinvestment. If the restricted shares are forfeited, the
employee is not entitled to the dividends on those shares. Restricted stock has a value equal to the market-trading price
of Xcel Energy’s stock at the grant date. Xcel Energy granted the shares of restricted stock in 2007, 2006 and 2005 as
follows:
2007 2006 2005
Granted shares ................................... 37,000 10,481 28,626
Grant-date market price ............................. $24.27 $ 19.10 $ 17.81
A summary of the status of our nonvested restricted stock as of Dec. 31, 2007, and changes during the year ended
Dec. 31, 2007 are as follows:
Weighted
Average Grant
Date Fair Value
Shares Price
(Shares in
thousands)
Nonvested restricted stock at Jan. 1, 2007 ............................ 29,476 $18.17
Granted ................................................. 37,000 24.27
Vested .................................................. (17,147) 17.89
Forfeited ................................................. (2,941) 18.45
Earned dividends ........................................... 1,766 22.31
Nonvested restricted stock at Dec. 31, 2007 ........................... 48,154 23.13
Restricted Stock Units — Xcel Energy’s board of directors has granted restricted stock units under the Xcel Energy
Omnibus Incentive Plan approved by the shareholders in 2000 and under the Xcel Energy 2005 Omnibus Incentive
Plan. Both plans allow the utilization of various performance goals on the restricted stock units granted. The
performance goals may vary by plan year. Under no circumstances will the restrictions on restricted stock units lapse,
even if performance goals have been achieved, until one year after the grant date for restricted stock units granted in
2004. The restrictions on restricted stock units granted in 2005, 2006 and 2007 will not lapse, under any
circumstances, even if performance goals have been achieved, until two years after the grant date.
On Jan. 2, 2004, Xcel Energy granted 512,638 restricted stock units under the Xcel Energy Omnibus Incentive Plan.
The grant-date market price used to calculate the total shareholder return (TSR) for this grant is $17.03. On Aug. 2,
2006, the restrictions lapsed on the restricted stock units, and Xcel Energy issued approximately 0.4 million shares of
common stock after approximately 0.2 million shares were withheld for tax purposes.
For years ended Dec. 31, 2007, 2006 and 2005, the restricted stock units awarded were as follows:
(Units in thousands) 2007 2006 2005
Units granted ................................... 313 390 519
Fair value at grant date ............................. $19.08 $15.13 $18.10
Payout of the units and the lapsing of restrictions on the transfer of units are based on two separate performance
criteria. A portion of the awarded units, plus associated earned dividend equivalents will be settled and the restricted
period will lapse after Xcel Energy achieves a specified earnings per share growth (adjusted for COLI). Additionally,
Xcel Energy’s annual dividend paid on its common stock must remain at $0.83 per share or greater. Earnings per share
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