Stock-Based Compensation

6 Months Ended

Jun. 30, 2012

Stock-Based Compensation [Abstract]

Stock-Based Compensation

NOTE 5.  STOCK-BASED COMPENSATION (Entergy Corporation)

Entergy grants stock awards, which are described more fully in Note 12 to the financial statements in the Form 10-K.  Awards under Entergy's plans generally vest over three years.

Stock Options

            Entergy granted 552,400 stock options during the first quarter 2012 with a weighted-average fair value of $9.42.  At June 30, 2012, there are 10,131,756 stock options outstanding with a weighted-average exercise price of $77.58.  The intrinsic value, which has no effect on net income, of the outstanding stock options is calculated by the difference in the weighted average exercise price of the stock options granted and Entergy Corporation's common stock price as of June 30, 2012.  Because Entergy's stock price at June 30, 2012 is less than the weighted average exercise price, the aggregate intrinsic value of the stock options outstanding as of June 30, 2012 is zero.  The intrinsic value of "in the money" stock options is $25.8 million as of June 30, 2012.

The following table includes financial information for stock options for the second quarter and six months ended June 30 for each of the years presented:

	2012	2011
	(In Millions)
Compensation expense included in Entergy's net income for the second quarter	$1.9	$2.5
Tax benefit recognized in Entergy's net income for the second quarter	$0.7	$1.0
Compensation expense included in Entergy's net income for the six months ended June 30,	$3.9	$5.5
Tax benefit recognized in Entergy's net income for the six months ended June 30,	$1.5	$2.1
Compensation cost capitalized as part of fixed assets and inventory as of June 30,	$0.8	$1.0

Other Equity Plans

            In January 2012, the Board approved and Entergy granted 339,700 restricted stock awards and 176,742 Long-term Incentive Plan (LTIP) awards under the 2011 Equity Ownership and Long-term Cash Incentive Plan.  The restricted stock awards were made effective as of January 26, 2012 and were valued at $71.30 per share, which was the closing price of Entergy's common stock on that date.  One-third of the restricted stock awards will vest upon each anniversary of the grant date.  Beginning with the 2012 – 2014 performance period, upon vesting, the performance units granted under LTIP will be settled in shares of Entergy common stock rather than cash.  The LTIP stock awards were made effective as of January 27, 2012 and were valued at $67.11 per share.  Entergy considers various factors, primarily market conditions, in determining the value of the LTIP stock awards.  Shares of the stock awards have the same dividend and voting rights as other common stock, are considered issued and outstanding shares of Entergy upon vesting, and are expensed ratably over the three year vesting period. 

The following table includes financial information for other equity plans for the second quarter and six months ended June 30 for each of the years presented:

	2012	2011
	(In Millions)
Compensation expense included in Entergy's net income for the second quarter	$3.6	$1.0
Tax benefit recognized in Entergy's net income for the second quarter	$1.4	$0.4
Compensation expense included in Entergy's net income for the six months ended June 30,	$7.4	$2.0
Tax benefit recognized in Entergy's net income for the six months ended June 30,	$2.8	$0.8
Compensation cost capitalized as part of fixed assets and inventory as of June 30,	$1.3	$0.3