PG&E 2014 Annual Report Download - page 102

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94
The amount of share-based compensation costs capitalized during 2014, 2013, and 2012 was immaterial. There was no
material difference between PG&E Corporation and the Utility for the information disclosed above.
Restricted Stock Units
Prior to 2014, restricted stock units generally vested over four years in 20% increments on the first business day of March
in year one, two, and three, with the remaining 40% vesting on the first business day of March in year four. Restricted stock units
granted in 2014 generally vest equally over three years. Vested restricted stock units are settled in shares of PG&E Corporation
common stock accompanied by cash payments to settle any dividend equivalents associated with the vested restricted stock units.
Compensation expense is generally recognized rateably over the vesting period based on grant-date fair value. The weighted
average grant-date fair value for restricted stock units granted during 2014, 2013, and 2012 was $43.76, $42.92, and $42.17,
respectively. The total fair value of restricted stock units that vested during 2014, 2013, and 2012 was $34 million, $30 million,
and $18 million, respectively. The tax benefit from restricted stock units that vested during each period was not material. As of
December 31, 2014, $51 million of total unrecognized compensation costs related to nonvested restricted stock units was expected
to be recognized over the remaining weighted average period of 1.77 years.
The following table summarizes restricted stock unit activity for 2014:
Number of Weighted Average Grant-
Restricted Stock Units Date Fair Value
Nonvested at January 1 2,300,021 $ 43.16
Granted 1,092,035 $ 43.76
Vested (777,883) $ 43.28
Forfeited (75,816) $ 43.01
Nonvested at December 31 2,538,357 $ 43.38
Performance Shares
Performance shares generally will vest three years after the grant date. Upon vesting, performance shares are settled
in shares of common stock based on PG&E Corporation’s total shareholder return relative to a specified group of industry peer
companies over a three-year performance period. Dividend equivalents are paid in cash based on the amount of common stock to
which the recipients are entitled.
Compensation expense attributable to performance share is generally recognized rateably over the applicable three-year
period based on the grant-date fair value determined using a Monte Carlo simulation valuation model. The weighted average grant-
date fair value for performance shares granted during 2014, 2013, and 2012 was $51.81, $33.45, and $41.93 respectively. There
was no tax benefit associated with performance shares during each of these periods. As of December 31, 2014, $34 million of
total unrecognized compensation costs related to nonvested performance shares was expected to be recognized over the remaining
weighted average period of 1.18 years.
The following table summarizes activity for performance shares in 2014:
Number of Weighted Average Grant-
Performance Shares Date Fair Value
Nonvested at January 1 1,791,320 $ 37.85
Granted 843,185 51.81
Vested (275,247) 41.94
Forfeited (1) (665,319) 42.34
Nonvested at December 31 1,693,939 $ 42.37
(1) Includes performance shares that expired with zero value as performance targets were not met.