Capital One 2013 Annual Report Download - page 239

CAPITAL ONE FINANCIAL CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
The weighted-average grant date fair value of performance share awards granted during 2013 and 2012 was
$56.32 and $45.91, respectively. The total fair value of performance share awards vesting on the vesting date was
$16 million in 2013. The unrecognized compensation expense related to unvested performance share awards as
of December 31, 2013 was $17 million, which is expected to be amortized over a weighted-average period of 0.9
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
for each unit vested equal to the average fair market value of our common stock for the 20 trading days preceding
the vesting date. Cash equity units and cash-settled restricted stock units are settled in cash and therefore are not
counted against the common shares reserved for issuance or available for issuance under the 2004 Plan. Cash
equity units and cash-settled restricted stock units generally vest at 33
1
⁄ 3 percent per year beginning on or shortly
after the first anniversary of the grant date; however, some cash-settled restricted stock units cliff vest in
December of the year of grant or on or shortly after the third anniversary of the grant date. In addition, vesting is
subject to the achievement of any applicable performance conditions.
Cash equity units and cash-settled restricted stock units vesting during 2013, 2012 and 2011 resulted in cash
payments to associates of $74 million, $88 million, and $81 million, respectively. We expect to recognize the
unrecognized compensation cost for unvested cash equity units of $59 million as of December 31, 2013, based on
the closing price of our common stock as of that date, over a weighted-average period of 1.4 years.
Associate Stock Purchase Plan
We maintain an Associate Stock Purchase Plan (the “Purchase Plan”) which is a compensatory plan under the
accounting guidance for stock-based compensation. We recognized $11 million, $8 million and $6 million in
compensation expense for 2013, 2012 and 2011, respectively under the Purchase Plan.
Under the Purchase Plan, our associates are eligible to contribute between 1% and 15% of their base salary
through payroll deductions. The amounts contributed are applied to the purchase of our unissued common or
treasury stock at 85% of the current market price. Shares may also be acquired on the open market. In 2012,
shareholders authorized an additional 10.0 million shares to be added to the previously authorized total of
8.0 million shares available for issuance under the Purchase Plan. Of the total authorized shares of 18.0 million
as of December 31, 2013, 9.4 million shares were available for issuance on December 31, 2013. Of the total
authorized shares of 18.0 million as of December 31, 2012, 10.7 million shares were available for issuance as of
December 31, 2012.
Dividend Reinvestment and Stock Purchase Plan
In 2002, we implemented our Dividend Reinvestment and Stock Purchase Plan (“2002 DRP”), which allows
participating stockholders to purchase additional shares of our common stock through automatic reinvestment of
dividends or optional cash investments. We had 7.4 million shares available for issuance under the 2002 DRP at
December 31, 2013 and 2012.
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