Stock-Based Compensation

9 Months Ended

Sep. 30, 2014

Disclosure of Compensation Related Costs, Share-based Payments [Abstract]

Stock-Based Compensation

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 611,700 stock options during the first quarter 2014 with a weighted-average fair value of $8.71 per option.  At September 30, 2014, there are 8,785,130 stock options outstanding with a weighted-average exercise price of $81.23.  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 September 30, 2014.  Because Entergy’s stock price at September 30, 2014 is less than the weighted average exercise price, the aggregate intrinsic value of the stock options outstanding as of September 30, 2014 is zero. The intrinsic value of “in the money” stock options is $4.8 million as of September 30, 2014.

The following table includes financial information for stock options for the third quarters of 2014 and 2013:

	2014		2013
	(In Millions)
Compensation expense included in Entergy’s net income		$1.0		$1.0
Tax benefit recognized in Entergy’s net income		$0.4		$0.4
Compensation cost capitalized as part of fixed assets and inventory		$0.2		$0.2

The following table includes financial information for stock options for the nine months ended September 30, 2014 and 2013:

	2014		2013
	(In Millions)
Compensation expense included in Entergy’s net income		$3.1		$3.2
Tax benefit recognized in Entergy’s net income		$1.2		$1.3
Compensation cost capitalized as part of fixed assets and inventory		$0.5		$0.6

Other Equity Plans

In January 2014 the Board approved and Entergy granted 352,600 restricted stock awards and 226,792 long-term incentive awards under the 2011 Equity Ownership and Long-term Cash Incentive Plan.  The restricted stock awards were made effective as of January 30, 2014 and were valued at $63.17 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.  The long-term incentive awards are granted in the form of performance units, which are equal to the cash value of shares of Entergy Corporation at the end of the performance period, which is the last day of the year.  The performance units were made effective as of January 30, 2014 and were valued at $67.16 per share.  Entergy considers various factors, primarily market conditions, in determining the value of the performance units.  Shares of the restricted 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 3-year vesting period.  Shares of the performance units have the same dividend rights as other common stock, are considered issued and outstanding shares of Entergy upon vesting, and are expensed ratably over the 3-year vesting period.

The following table includes financial information for other equity plans for the third quarters of 2014 and 2013:

	2014		2013
	(In Millions)
Compensation expense included in Entergy’s net income		$7.6		$5.7
Tax benefit recognized in Entergy’s net income		$2.9		$2.2
Compensation cost capitalized as part of fixed assets and inventory		$1.2		$0.9

The following table includes financial information for other equity plans for the nine months ended September 30, 2014 and 2013:

	2014		2013
	(In Millions)
Compensation expense included in Entergy’s net income		$22.7		$17.5
Tax benefit recognized in Entergy’s net income		$8.8		$6.8
Compensation cost capitalized as part of fixed assets and inventory		$3.5		$2.7