Chesapeake Energy 2015 Annual Report Download - page 111

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CHESAPEAKE ENERGY CORPORATION AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (Continued)
107
A reconciliation of the beginning and ending balances of unrecognized tax benefits is as follows:
2015 2014 2013
($ in millions)
Unrecognized tax benefits at beginning of period ....................................... $ 303 $ 644 $ 599
Additions based on tax positions related to the current year................... 27 13 15
Additions to tax positions of prior years .................................................. — — 30
Reductions to tax positions of prior years ............................................... (50) (354) —
Unrecognized tax benefits at end of period ................................................. $ 280 $ 303 $ 644
Chesapeake's federal and state income tax returns are routinely audited by federal and state fiscal authorities.
The Internal Revenue Service (IRS) is currently auditing our federal income tax returns for 2010 through 2013. The
2010 through 2015 years and the 2007 through 2015 years remain open for all purposes of examination by the IRS
and other taxing authorities in material jurisdictions, respectively.
7. Related Party Transactions
Our equity method investees are considered related parties. During 2015, 2014 and 2013, we had the following
transactions with our equity method investees:
Years Ended December 31,
2015 2014 2013
($ in millions)
Sales(a) ..................................................................................................... $ — $ — $ 666
Services(b) ................................................................................................. $ 65 $ 220 $ 397
___________________________________________
(a) In 2013, Chesapeake sold produced gas to our 30%-owned investee, Twin Eagle Resource Management LLC
(Twin Eagle). We sold our investment in Twin Eagle in 2014.
(b) Hydraulic fracturing and other services are provided to us by FTS International, Inc. in the ordinary course of
business. As well operators, we are reimbursed by other working interest owners through the joint interest billing
process for their proportionate share of these costs.
8. Equity
Common Stock
The following is a summary of the changes in our common shares issued for the years ended December 31,
2015, 2014 and 2013:
Years Ended December 31,
2015 2014 2013
(in thousands)
Shares issued as of January 1 ...................................................................... 664,944 666,192 666,468
Restricted stock issuances (net of forfeitures and cancellations)(a) ........... (163) (2,529) (599)
Stock option exercises .............................................................................. 15 1,281 323
Shares issued as of December 31 ................................................................. 664,796 664,944 666,192
___________________________________________
(a) The amount for 2014 reflects forfeitures upon the June 2014 spin-off of our oilfield services business.