Chesapeake Energy 2015 Annual Report Download - page 121
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CHESAPEAKE ENERGY CORPORATION AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (Continued)
117
The following table presents a summary of our 2015, 2014 and 2013 PSU awards:
Units
Fair Value
as of
Grant Date Fair Value(a)
Liability for
Vested
Amount(a)
($ in millions)
2015 Awards:
Payable 2018 .................................................... 696,683 $ 13 $ 2 $ 1
2014 Awards:
Payable 2017 .................................................... 609,637 $ 16 $ — $ —
2013 Awards:
Payable 2016 ................................................. 1,701,941 $ 35 $ 4 $ 4
___________________________________________
(a) As of December 31, 2015.
PSU Compensation. We recognized the following compensation costs (credits) related to PSUs for the years
ended December 31, 2015, 2014 and 2013:
Years Ended December 31,
2015 2014 2013
($ in millions)
General and administrative expenses ...................................................... $ (19) $ (4) $ 34
Restructuring and other termination costs ................................................ (19) (19) 29
Marketing, gathering and compression .................................................... (1) — 2
Oil and natural gas properties .................................................................. (2) 3 9
Oil, natural gas and NGL production expenses ........................................ — — 2
Oilfield services expenses ........................................................................ — — 1
Total ............................................................................................... $ (41) $ (20) $ 77
Effect of the Spin-off on Share-Based Compensation
The employee matters agreement entered into in connection with the June 2014 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.