APS 2013 Annual Report Download - page 146

Table of Contents
PINNACLE WEST CAPITAL CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
equal to the number of vested performance shares from the date of grant to the date of payment plus interest compounded quarterly.
Performance share awards are accounted for as liability awards, with compensation cost initially calculated on the date of grant using the Company’s
closing stock price, and remeasured at each balance sheet date. Compensation expense for retirement eligible participants is recognized immediately.
Management also evaluates the probability of meeting the performance criteria at each balance sheet date. If performance criteria are not achieved, no
compensation cost is recognized and any previously recognized compensation cost is reversed.
The following table is a summary of the performance shares granted and the weighted-average fair value for the three years ended 2013, 2012 and
2011:
2013 2012 2011
Units granted (a) 176,332 185,878 175,072
Grant date fair value (b) $55.45 $47.40 $41.71
(a) Reflects the target payout level.
(b) Weighted-average grant date fair value.
The following table is a summary of the status of performance shares, as of December 31, 2013 and changes during the year:
Nonvested shares (a) Shares
Weighted-Average
Grant Date Fair Value
Nonvested at January 1, 2013 347,690 $ 44.67
Granted 176,332 55.45
Increase in performance factor 40,183 41.71
Vested 200,915 41.71
Forfeited 18,894 48.11
Nonvested at December 31, 2013 344,396 51.13
(a) Nonvested shares are reflected at target payout level. The increase or decrease in the number of shares from the target level to the estimated
actual payout level is included in the increase for performance factor amounts in the year the award vests.
Stock Options
The Company has not granted stock options since 2004 and has no stock options outstanding.
The following table summarizes the option activity under prior equity incentive plans for the year ended December 31, 2013:
142