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STOCK-BASED COMPENSATION (Tables)
 9 Months Ended
Sep. 30, 2014
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]  
Schedule of stock-based compensation expense and the related deferred tax benefit recognized in income
The following table reflects the stock-based compensation expense and the related deferred income tax benefit recognized in income for the three and nine months ended September 30:
 
 
Three Months Ended September 30
 
Nine Months Ended September 30
(Millions)
 
2014
 
2013
 
2014
 
2013
Stock options
 
$
0.1

 
$
0.2

 
$
0.4

 
$
0.5

Performance stock rights
 
0.1

 
0.4

 
3.9

 
1.7

Restricted share units
 
0.7

 
0.8

 
2.7

 
2.6

Total stock-based compensation expense
 
$
0.9

 
$
1.4

 
$
7.0

 
$
4.8

Deferred income tax benefit
 
$
0.4

 
$
0.6

 
$
2.8


$
1.9
Schedule of the assumptions incorporated into the valuation of stock options granted
The following table shows the assumptions incorporated into the valuation model:
 
 
February 2014 Grant
Expected term
 
8 years
Risk-free interest rate
 
0.12% – 2.88%
Expected dividend yield
 
5.28%
Expected volatility
 
18%
Summary of stock option activity and information related to outstanding and exercisable stock options
A summary of stock option activity for the nine months ended September 30, 2014, and information related to outstanding and exercisable stock options at September 30, 2014, is presented below:
 
 
Stock Options
 
Weighted-Average 
Exercise Price Per 
Share
 
Weighted-Average 
Remaining Contractual
Life (in Years)
 
Aggregate 
Intrinsic Value
(Millions)
Outstanding at December 31, 2013
 
49,993

 
$
53.03

 
 
 
 

Granted
 
13,890

 
55.23

 
 
 
 

Exercised
 
(17,333
)
 
51.48

 
 
 
 

Outstanding at September 30, 2014
 
46,550

 
$
54.26

 
8.2
 
$
0.5

Exercisable at September 30, 2014
 
9,270

 
$
52.15

 
7.2
 
$
0.1
Schedule of assumptions incorporated into the valuation models for performance stock rights
The table below reflects the assumptions used in the valuation of the outstanding grants at September 30:
 
 
2014
Risk-free interest rate
 
0.06% – 0.60%
Expected dividend yield
 
5.28% – 5.33%
Expected volatility
 
17% – 23%
Information related to share based awards  
Summary of activity related to restricted share unit awards (equity and liability awards)
A summary of the activity related to all restricted share unit awards (equity and liability awards) for the nine months ended September 30, 2014, is presented below:
 
 
Restricted Share
 Unit Awards
 
Weighted-Average
Grant Date Fair Value
Outstanding at December 31, 2013
 
67,741

 
$
52.06

Granted
 
28,725

 
55.23

Dividend equivalents
 
2,262

 
54.46

Vested and released
 
(28,325
)
 
49.50

Transfers
 
332

 
54.55

Forfeited
 
(804
)
 
54.64

Outstanding at September 30, 2014
 
69,931

 
$
54.46
Performance Stock Rights Accounted for as Equity Awards
  
Information related to share based awards  
Summary of the activity related to performance stock rights
A summary of the activity for the nine months ended September 30, 2014, related to performance stock rights accounted for as equity awards is presented below:
 
 
Performance
Stock Rights
 
Weighted-Average
 Fair Value (2)
Outstanding at December 31, 2013
 
5,561

 
$
45.16

Granted
 
1,113

 
44.28

Award modifications (1)
 
2,295

 
85.09

Adjustment for shares not distributed
 
(3,347
)
 
41.90

Outstanding at September 30, 2014
 
5,622

 
$
63.23


(1) 
Six months prior to the end of the performance period, employees can no longer change their election to defer the value of their performance stock rights into the deferred compensation plan. As a result, any awards not elected for deferral at this point in the performance period will be settled in Integrys Energy Group's common stock. This changes the classification of these awards from a liability award to an equity award. The change in classification is accounted for as an award modification.

(2) 
Reflects the weighted-average fair value used to measure equity awards. Equity awards are measured using the grant date fair value or the fair value on the modification date.
Performance Stock Rights Accounted for as Liability Awards
  
Information related to share based awards  
Summary of the activity related to performance stock rights
A summary of the activity for the nine months ended September 30, 2014, related to performance stock rights accounted for as liability awards is presented below:
 
 
Performance
Stock Rights
Outstanding at December 31, 2013
 
9,222

Granted
 
4,440

Award modifications *
 
(2,295
)
Adjustment for shares not distributed
 
(379
)
Outstanding at September 30, 2014
 
10,988