CenturyLink 2015 Annual Report Download - page 184

contained only service conditions and will vest on a straight-line basis on February 20, 2015, 2016 and 2017. The
remaining awards contain market and service conditions and are scheduled to vest on February 20, 2017. These
shares, with market and service conditions, represent only the target for the award, as each recipient has the
opportunity to ultimately receive a number of shares between 0% and 200% of the target restricted stock award
depending on our total shareholder return versus that of selected peer companies for 2014, 2015 and 2016.
During the second quarter of 2014, we granted approximately 1.5 million shares to certain key employees as
part of our annual equity compensation program. These awards contained only service conditions and will vest
on a straight-line basis on March 26, 2015, 2016 and 2017. During the third quarter of 2014 we granted shares to
certain key employees as part of our long-term equity retention program. These awards will vest over a three to
seven year period with approximately 105 thousand, 325 thousand and 220 thousand vesting on August 4, 2017,
2019 and 2021, respectively. The remaining awards granted throughout 2014 to certain other key employees and
our outside directors were made as part of our equity compensation and retention programs. These awards require
only service conditions for vesting and typically vest equally over a three year period.
During the second quarter of 2013, we granted approximately 335 thousand shares of restricted stock to
certain executive-level employees as part of our long-term incentive program, of which approximately
223 thousand contained only service conditions and are scheduled to vest on a straight-line basis on May 23,
2014, 2015 and 2016. The remaining awards contain market and service conditions and will vest on May 23,
2016. These shares, with market and service conditions, represent only the target for the award as each recipient
has the opportunity to ultimately receive a number of shares between 0% and 200% of the target restricted stock
award depending on, our total shareholder return versus that of selected peer companies for 2013, 2014 and 2015.
In addition, during the first and second quarter of 2013, we granted approximately 1.2 million shares to
certain key employees as part of our annual equity compensation program. These awards contained only service
conditions. The remaining awards granted throughout 2013 to certain other key employees and our outside
directors were made as part of our equity compensation and retention programs. These awards require only
service conditions for vesting and typically vest equally over a three year period.
The following table summarizes activity involving restricted stock and restricted stock unit awards for the
year ended December 31, 2015:
Number of
Shares
Weighted-
Average
Grant Date
Fair Value
(in thousands)
Non-vested at December 31, 2014 ................ 4,400 $36.59
Granted ................................. 2,904 31.83
Vested .................................. (1,724) 35.71
Forfeited ................................ (678) 38.95
Non-vested at December 31, 2015 ................ 4,902 33.86
During 2014, we granted 2.9 million shares of restricted stock and restricted stock unit awards at a
weighted-average price of $35.87. The total fair value of restricted stock that vested during 2015, 2014 and 2013,
was $59 million, $53 million and $52 million, respectively.
Compensation Expense and Tax Benefit
We recognize compensation expense related to our market and performance share-based awards with graded
vesting that only have a service condition on a straight-line basis over the requisite service period for the entire
award. Total compensation expense for all share-based payment arrangements for the years ended December 31,
2015, 2014 and 2013, was $73 million, $75 million and $63 million, respectively. Our tax benefit recognized in
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