Company: EAI
Filing Date: 2025-02-18
Form Type: 10-K
Source: 0000065984-25-000012
Chunk: 654

Company: ENTERGY ARKANSAS, LLC
Filing Date: 2025-02-18
Form: 10-K
Item: Item 7
Chunk 654
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 own shares of Entergy Corporation common stock equal to a specified multiple of his or her salary.  Until an executive officer achieves this ownership position the executive officer is required to retain 75% of the net-of-tax net profit upon exercise of the option to be held in Entergy Corporation common stock.  The reduction in fair value of the stock options due to this restriction is based upon an estimate of the call option value of the reinvested gain discounted to present value over the applicable reinvestment period.A summary of stock option activity for the year ended December 31, 2024 and changes during the year are presented below:   Numberof OptionsWeighted-AverageExercisePrice AggregateIntrinsicValueWeighted-AverageContractual Life(Dollars In Thousands, Except Per Share Data)Options outstanding as of January 1, 20245,797,416 $48.83  Options granted704,398 $49.54  Options exercised(3,114,546)$43.83  Options forfeited/expired(160,812)$57.69  Options outstanding as of December 31, 20243,226,456 $53.38$72,4106.62Options exercisable as of December 31, 20241,935,970 $54.38$41,5155.44Weighted-average grant-date fair value of options granted during 2024$9.31   The weighted-average grant-date fair value of options granted during the year was $10.04 for 2023 and $8.13 for 2022.  The total intrinsic value of stock options exercised was $56 million during 2024, $2 million during 2023, and $20 million during 2022.  The intrinsic value, which has no effect on net income, of the outstanding stock options 

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Table of ContentsEntergy Corporation and SubsidiariesNotes to Financial Statements

exercised is calculated by the positive difference between the weighted-average exercise price of the stock options granted and Entergy Corporation’s common stock price as of December 31, 2024.  Entergy recognizes compensation cost over the vesting period of the options based on their grant-date fair value.  The total fair value of options that vested was approximately $6 million during 2024, $6 million during 2023, and $5 million during 2022.  Cash received from option exercises was $136 million