Capital One 2012 Annual Report Download - page 243

CAPITAL ONE FINANCIAL CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
A summary of 2012 activity for performance share units is presented below:
Shares
(in thousands)
Weighted-
Average
Grant Date
Fair Value
per Share
Unvested as of January 1, 2012 ........................................... 546 $30.83
Granted (1) ............................................................ 563 39.07
Vested (1) ............................................................. (463) 21.00
Forfeited ............................................................. 0 0.00
Unvested as of December 31, 2012 ........................................ 646 $45.05
(1) Includes adjustments for achievement of specific performance goals for performance share units granted in prior periods.
The weighted-average grant date fair value of performance share units granted during 2012, 2011 and 2010 was
$39.07, $52.10 and $36.55, respectively. The total fair value of performance share units vesting on the vesting
date was $21 million and $22 million in 2012 and 2011, respectively. No performance share units vested in 2010.
We expect to recognize the unrecognized compensation cost for unvested performance share units of $11 million
as of December 31, 2012 within three years.
Performance Share Awards
Generally the value of performance share awards will equal the fair market value of our common stock on the
date of grant. Performance share awards were granted for the first time in 2012. The vesting for performance
share awards is generally 33 1/3 percent per year beginning on or shortly after the first anniversary of the grant
date. The number of performance share awards that will vest each year can be reduced by 50% or 100%
depending on whether specific performance goals are met during the three-year service period.
A summary of 2012 activity for performance share units is presented below:
Shares
(in thousands)
Weighted-
Average
Grant Date
Fair Value
per Share
Unvested as of January 1, 2012 ........................................... 0 $0
Granted .............................................................. 843 45.91
Vested .............................................................. (9) 45.75
Forfeited ............................................................. (64) 45.75
Unvested as of December 31, 2012 ........................................ 770 $45.93
The weighted-average grant date fair value of performance share awards granted during 2012 was $45.91. We
expect to recognize the unrecognized compensation cost for unvested performance share awards of $12 million
as of December 31, 2012 within three years.
Cash Equity Units and Cash-Settled Restricted Stock Units
We also issue cash equity units and cash-settled restricted stock units which are recorded as liabilities as the
expense is recognized. Cash equity units and cash-settled restricted stock units are settled with a cash payment
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