Sunoco 2014 Annual Report Download - page 88

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to October 5, 2012 are time-vested grants, the vesting of which is conditioned solely upon continued employment or service as
of the applicable vesting date. Such awards generally vest over a five-year period.
The following table summarizes information regarding restricted unit award activity for the periods presented:
Number
of Units (1) Weighted Average Grant Date Fair Value (1)
Predecessor
Granted, non-vested and outstanding, December 31, 2011 761,952 $ 13.93
Granted (2) 384,918 $ 17.96
Performance factor adjustment 275,883 $ 12.62
Vested (95,832) $ 15.08
Cancelled/forfeited (40,818) $ 15.74
Granted, non-vested and outstanding, October 4, 2012 1,286,103 $ 14.71
Successor
Granted, non-vested and outstanding, October 5, 2012 1,286,103 $ 14.71
Granted 257,146 $ 25.28
Performance factor adjustment 25,107 $ 15.75
Vested (3) (713,136) $ 12.84
Cancelled/forfeited — $ —
Granted, non-vested and outstanding, December 31, 2012 855,220 $ 19.48
Granted 858,246 $ 30.00
Performance factor adjustment 202,620 $ 15.76
Vested (563,668) $ 18.33
Cancelled/forfeited (73,256) $ 24.19
Granted, non-vested and outstanding, December 31, 2013 1,279,162 $ 26.19
Granted 719,009 $ 41.59
Performance factor adjustment 229,828 $ 17.52
Vested (693,326) $ 20.26
Cancelled/forfeited (72,872) $ 30.10
Granted, non-vested and outstanding, December 31, 2014 1,461,801 $ 35.01
(1) The unit volumes and fair values have been adjusted to reflect the June 12, 2014 two-for-one unit split.
(2) Of the total number of restricted units granted, the portion that represents units that are subject to performance factors may
ultimately be issued at 0 to 200 percent of the original grant, based on the Partnership's achievement of performance goals for total
shareholder return and cash distributions relative to a selected peer group of competitors.
(3) Relates primarily to awards that vested as a result of the acquisition of the general partner by ETP (Note 1). The unit-based
compensation expense attributable to these awards that was recognized during the period from October 5, 2012 to December 31,
2012 was not material, as the majority of such awards were scheduled to vest in December 2012.
The total fair value of restricted unit awards vested for the years ended December 31, 2014 and 2013, and for the periods
from October 5, 2012 to December 31, 2012 and from January 1, 2012 to October 4, 2012 was $30, $21, $18 and $2 million,
respectively. As of December 31, 2014, estimated compensation cost related to non-vested awards not yet recognized was $33
million, and the weighted average period over which this cost is expected to be recognized in expense is 2.9 years.
The estimated fair value of restricted units under the LTIP is determined based upon the nature of the award. For
performance-based awards, the fair value of the restricted units subject to the cash distribution performance targets was
determined using the grant date market price of the Partnership's common units, subject to a performance factor adjustment
over the course of the vesting. For performance-based awards subject to market-based performance targets, the fair value was
determined using a Monte Carlo simulation. The fair value of the Partnership's time-vested awards is based on the grant date
market price of the Partnership's common units.
The Partnership recognizes compensation expense on a straight-line basis over the requisite service period, and estimates
forfeitures over the requisite service period when recognizing compensation expense.