Chesapeake Energy 2013 Annual Report Download - page 117

CHESAPEAKE ENERGY CORPORATION AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (Continued)
109
For the years ended December 31, 2013 and 2012, the Trust declared and paid the following distributions:
Production Period Distribution Date
Cash Distribution
per
Common Unit
Cash Distribution
per
Subordinated Unit
June 2013 - August 2013............................. November 29, 2013 $ 0.6671 $ —
March 2013 - May 2013............................... August 29, 2013 $ 0.6900 $ 0.1432
December 2012 - February 2013................. May 31, 2013 $ 0.6900 $ 0.3010
September 2012 - November 2012 ............. March 1, 2013 $ 0.6700 $ 0.3772
June 2012 - August 2012............................. November 29, 2012 $ 0.6300 $ 0.2208
March 2012 - May 2012............................... August 30, 2012 $ 0.6100 $ 0.4819
December 2011 - February 2012................. May 31, 2012 $ 0.6588 $ 0.6588
September 2011 - November 2011.............. March 1, 2012 $ 0.7277 $ 0.7277
We have determined that the Trust constitutes a VIE and that Chesapeake is the primary beneficiary. As a result,
the Trust is included in our consolidated financial statements. As of December 31, 2013 and 2012, $314 million and
$356 million, respectively, of noncontrolling interests on our consolidated balance sheets, respectively, were attributable
to the Trust. For 2013 and 2012, income of approximately $20 million and $35 million, respectively, was attributable
to the Trust’s noncontrolling interests in our consolidated statements of operations. See Note 14 for further discussion
of VIEs.
Wireless Seismic, Inc. We have a controlling 51% equity interest in Wireless Seismic, Inc. (Wireless), a privately
owned company engaged in research, development and production of wireless seismic systems and any related
technology that deliver seismic information obtained from standard geophones in real time to laptop and desktop
computers. As of December 31, 2013 and 2012, $9 million and $5 million, respectively, of noncontrolling interests on
our consolidated balance sheets, respectively, were attributable to Wireless. In each of 2013 and 2012, losses of $4
million were attributable to noncontrolling interests of Wireless in our consolidated statements of operations.
9. Share-Based Compensation
Chesapeake’s share-based compensation program consists of restricted stock, stock options and performance
share units (PSUs) granted to employees and restricted stock granted to non-employee directors under our Long Term
Incentive Plan. The restricted stock and stock options are equity-classified awards and the PSUs are liability-classified
awards.
Share-Based Compensation Plans
Under Chesapeake's Long Term Incentive Plan, restricted stock, stock options, stock appreciation rights,
performance shares, performance share units and other stock awards may be awarded to employees, directors and
consultants of Chesapeake. Subject to any adjustments as provided by the plan, the aggregate number of shares of
common stock available for awards under the plan may not exceed 59,300,000 shares. The maximum period for
exercise of an option or stock appreciation right may not be more than ten years from the date of grant, and the exercise
price may not be less than the fair market value of the shares underlying the option or stock appreciation right on the
date of grant. Awards granted under the plan become vested at specified dates or upon the satisfaction of certain
performance or other criteria determined by a committee of the Board of Directors. No awards may be granted under
the plan after September 30, 2014. The plan has been approved by our shareholders. There were 147,108, 170,151
and 68,824 shares of restricted stock issued to our non-employee directors under the plan in 2013, 2012 and 2011,
respectively. Additionally, there were 2.5 million, 5.0 million and 4.5 million restricted stock issued, net of forfeitures,
to employees and consultants during 2013, 2012 and 2011, respectively, under the plan. As of December 31, 2013,
there were 12.7 million shares remaining available for issuance under the plan.