ComEd 2015 Annual Report Download - page 394

Table of Contents
Combined Notes to Consolidated Financial Statements—(Continued)
(Dollars in millions, except per share data unless otherwise noted)
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Restricted stock units are granted under the LTIP with the majority being settled in a specific number of shares of common stock after the
service condition has been met. The corresponding cost of services is measured based on the grant date fair value of the restricted stock unit
issued.
The value of the restricted stock units is expensed over the requisite service period using the straight-line method. The requisite service
period for restricted stock units is generally three to five years. However, certain restricted stock unit awards become fully vested upon the
employee reaching retirement-eligibility. The value of the restricted stock units granted to retirement-eligible employees is either recognized
immediately upon the date of grant or through the date at which the employee reaches retirement eligibility. Exelon uses historical data to estimate
employee forfeitures, which are compared to actual forfeitures on a quarterly basis and adjusted as necessary.
The following table summarizes Exelon’s nonvested restricted stock unit activity for the year ended December 31, 2015:
Shares
Weighted Average
Grant Date Fair
Value (per share)
Nonvested at December 31, 2014 3,758,218 $ 31.27
Granted 2,132,856 36.55
Vested (1,597,255) 32.88
Forfeited (76,232) 33.06
Undistributed vested awards (654,333) 35.35
Nonvested at December 31, 2015 3,563,254 $ 32.92
(a) Excludes 1,097,630 and 975,116 of restricted stock units issued to retirement-eligible employees as of December 31, 2015 and 2014, respectively, as they are fully vested.
(b) Represents restricted stock units that vested but were not distributed to retirement-eligible employees during 2015.
The weighted average grant date fair value (per share) of restricted stock units granted for the years ended December 31, 2015, 2014 and
2013 was $36.55, $28.71 and $31.06, respectively. At December 31, 2015 and 2014, Exelon had obligations related to outstanding restricted stock
units not yet settled of $97 million and $85 million, respectively, which are included in common stock in Exelon’s Consolidated Balance Sheets.
For the years ended December 31, 2015, 2014 and 2013, Exelon settled restricted stock units with fair value totaling $75 million, $43 million and
$28 million, respectively. At December 31, 2015, $56 million of total unrecognized compensation costs related to nonvested restricted stock units
are expected to be recognized over the remaining weighted-average period of 2 years.
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Performance share awards are granted under the LTIP. The 2015 and 2014 performance share awards are being settled 50% in common
stock and 50% in cash at the end of the three-year performance period except for awards granted to executive vice presidents and higher officers
that may be settled 100% in cash if certain ownership requirements are satisfied. The performance shares granted prior to 2012 generally vest and
settle over a three-year period with the holders receiving shares of common stock and/or cash annually during the vesting period.
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(a)
(b)
(a)
Source: BALTIMORE GAS & ELECTRIC CO, 10-K, February 10, 2016 Powered by Morningstar® Document Research℠
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