Allegheny Power 2014 Annual Report Download - page 95

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80
Pension OPEB
2014 2013 2014 2013
(In millions)
Net (Liability) Asset $ (295) $ (149) $ 10 $ (8)
FES’ share of the net periodic pension and OPEB costs (credits) for the three years ended December 31, 2014 was as follows:
Pension OPEB
2014 2013 2012 2014 2013 2012
(In millions)
Net Periodic Costs (Credits) $ 150 $ (30) $ 78 $ (24) $ (40) $ (11)
4. STOCK-BASED COMPENSATION PLANS
FirstEnergy has four stock-based compensation plans - ICP, 401(k) Savings Plan, EDCP and DCPD, as described further below.
ICP
The ICP includes four forms of stock-based compensation — restricted stock, restricted stock units, stock options and performance
shares.
Under the ICP, total issuances cannot exceed 29 million shares of common stock or their equivalent. Stock options, restricted stock
and restricted stock units are typically designated to pay out in common stock and performance shares are typically designated to
pay out in cash, although the form of payout for restricted stock units and for performance shares granted prior to 2013 can vary if
the recipient elects to defer the award. Vesting periods range from one to ten years with majority of awards having a vesting period
of three years. As of December 31, 2014, approximately 1.3 million shares were available for future grants assuming maximum
performance metrics are achieved for the 2013-2015 and 2014-2016 cycles of restricted stock units (or approximately 2.6 million
shares available assuming performance at target) plus any shares that become available again under the ICP due to cancellations,
forfeitures, cash settlements or other similar circumstances with respect to outstanding awards. Beginning in December 2013,
shares used under the ICP are issued from authorized but unissued common stock.
FirstEnergy records the compensation costs for stock-based compensation awards over the vesting period based on the fair value
on the grant date, less estimated forfeitures. FirstEnergy records the actual tax benefit realized from tax deductions when awards
are exercised or distributed. Realized tax benefits during the years ended December 31, 2014, 2013 and 2012 were $13 million,
$13 million and $22 million, respectively. The excess of the deductible amount over the recognized compensation cost is recorded
as a component of stockholders’ equity and reported as a financing activity on the Consolidated Statements of Cash Flows.
Restricted Stock and Restricted Stock Units
Restricted common stock (restricted stock) and restricted stock units (stock units) activity for the year ended December 31, 2014,
was as follows:
Outstanding as of January 1, 2014 2,216,609
Granted 1,171,318
Vested (1) (872,574)
Forfeited (103,549)
Outstanding as of December 31, 2014 2,411,804
(1) Excludes dividend equivalents of 148,982 earned during vesting period
The 1,171,318 shares of restricted stock and stock units granted during the year ended December 31, 2014, includes 259,812
stock units related to previous grants due to above target performance.
Eligible employees receive awards of FE restricted stock or stock units subject to restrictions that lapse over a defined period of
time or upon achieving performance results. Dividends are received on the restricted stock and are reinvested in additional shares.
Restricted stock grants under the ICP were as follows: