PG&E 2010 Annual Report Download - page 86

For performance shares classified as liability awards, the
following table summarizes activity for 2010:
Number of
Performance
Shares
Weighted
Average
Fair Value
Nonvested at January 1 1,547,598 $ 55.98
Granted –
Vested (387,019) $ 43.06
Forfeited (23,089) $ 56.18
Nonvested at December 31 1,137,490 $ 60.37
For performance shares classified as liability awards, the
total intrinsic value of amounts settled during 2010, 2009,
and 2008 was $17 million, $21 million, and $7 million,
respectively.
NOTE 7: PREFERRED STOCK
PG&E CORPORATION
PG&E Corporation has authorized 80 million shares of no
par value preferred stock and 5 million shares of $100 par
value preferred stock, which may be issued as redeemable
or nonredeemable preferred stock. No preferred stock of
PG&E Corporation has been issued to date.
UTILITY
The Utility has authorized 75 million shares of $25 par
value preferred stock and 10 million shares of $100 par
value preferred stock. The Utility specifies that 5,784,825
shares of the $25 par value preferred stock authorized are
designated as nonredeemable preferred stock without
mandatory redemption provisions. All remaining shares of
preferred stock may be issued as redeemable or
nonredeemable preferred stock.
The following table summarizes the Utility’s
outstanding preferred stock without mandatory redemption
provisions at December 31, 2010 and 2009:
(in millions, except share
amounts, redemption price, and
par value) Shares Outstanding Redemption Price Balance
Nonredeemable $25 par
value preferred stock
5.00% Series 400,000 N/A $ 10
5.50% Series 1,173,163 N/A 30
6.00% Series 4,211,662 N/A 105
Total nonredeemable
preferred stock 5,784,825 $ 145
Redeemable $25 par value
preferred stock
4.36% Series 418,291 $ 25.75 $ 11
4.50% Series 611,142 26.00 15
4.80% Series 793,031 27.25 20
5.00% Series 1,778,172 26.75 44
5.00% Series A 934,322 26.75 23
Total redeemable preferred
stock 4,534,958 $ 113
Preferred stock $ 258
Holders of the Utility’s nonredeemable preferred stock
have rights to annual dividends ranging from $1.25 to
$1.50 per share. The Utility’s redeemable preferred stock is
subject to redemption at the Utility’s option, in whole or
in part, if the Utility pays the specified redemption price
plus accumulated and unpaid dividends through the
redemption date. At December 31, 2010, annual dividends
on redeemable preferred stock ranged from $1.09 to $1.25
per share.
Dividends on all Utility preferred stock are cumulative.
All shares of preferred stock have voting rights and an
equal preference in dividend and liquidation rights. Upon
liquidation or dissolution of the Utility, holders of
preferred stock would be entitled to the par value of such
shares plus all accumulated and unpaid dividends, as
specified for the class and series. During each of 2010,
2009, and 2008, the Utility paid $14 million of dividends
on preferred stock. On December 15, 2010, the Board of
Directors of the Utility declared a cash dividend on its
outstanding series of preferred stock totaling $4 million
that was paid on February 15, 2011 to preferred
shareholders of record on January 31, 2011. On
February 16, 2011, the Board of Directors of the Utility
declared a cash dividend on its outstanding series of
preferred stock, payable on May 15, 2011, to shareholders
of record on April 29, 2011.
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