Chesapeake Energy 2014 Annual Report Download - page 120

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CHESAPEAKE ENERGY CORPORATION AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (Continued)
112
The following table presents a summary of our PSU awards:
Units
Fair Value
as of
Grant Date Fair Value(a)
Liability for
Vested
Amount
($ in millions)
2012 Awards (b)
Payable 2015 884,507 $ 23 $ 12 $ 12
2013 Awards
Payable 2016 1,701,941 $ 35 $ 42 $ 39
2014 Awards
Payable 2017 609,637 $ 16 $ 10 $ 7
___________________________________________
(a) As of December 31, 2014.
(b) In 2014 and 2013, we paid $11 million and $2 million, respectively, related to 2012 PSU awards.
PSU Compensation. We recognized the following compensation costs related to PSUs for the years ended
December 31, 2014, 2013 and 2012:
Years Ended December 31,
2014 2013 2012
($ in millions)
General and administrative expenses $ (4) $ 34 $ 8
Oil and natural gas properties 3 9 4
Oil, natural gas and NGL production expenses — 2 1
Marketing, gathering and compression expenses — 2 1
Oilfield services expenses — 1 —
Total $ (1) $ 48 $ 14
Effect of the Spin-off on Share-Based Compensation
The employee matters agreement entered into in connection with the spin-off of our oilfield services business
(see Note 13) addresses the treatment of holders of Chesapeake stock options, restricted stock and PSUs. Unvested
equity-based compensation awards held by COO employees were canceled and replaced with new awards of SSE,
and unvested equity-based compensation awards held by Chesapeake employees were adjusted to account for the
spin-off, each as of the spin-off date. The employee matters agreement provides that employees of SSE ceased to
participate in benefit plans sponsored or maintained by Chesapeake as of the spin-off date. In addition, the employee
matters agreement provides that as of the spin-off date, each party is responsible for the compensation of its current
employees and for all liabilities relating to its former employees, as determined by their respective employer on the
date of termination.