ComEd 2015 Annual Report Download - page 395

Table of Contents
Combined Notes to Consolidated Financial Statements—(Continued)
(Dollars in millions, except per share data unless otherwise noted)
The common stock portion of the performance share and one-time 2013 performance share transition awards is considered an equity award
and is valued based on Exelon’s stock price on the grant date. The cash portion of the awards is considered a liability award which is remeasured
each reporting period based on Exelon’s current stock price. As the value of the common stock and cash portions of the awards are based on
Exelon’s stock price during the performance period, coupled with changes in the total shareholder return modifier and expected payout of the
award, the compensation costs are subject to volatility until payout is established.
For nonretirement-eligible employees, stock-based compensation costs are recognized over the vesting period of three years using the
graded-vesting method. For performance share and one-time performance share transition awards granted to retirement-eligible employees, the
value of the performance shares is recognized ratably over the vesting period, which is the year of grant.
The following table summarizes Exelon’s nonvested performance share awards activity for the year ended December 31, 2015:
Shares
Weighted Average
Grant Date Fair
Value (per share)
Nonvested at December 31, 2014 2,696,097 $ 30.62
Granted 1,556,273 35.88
Change in performance (118,398) 35.88
Vested (704,141) 32.80
Forfeited (52,167) 32.25
Undistributed vested awards (820,505) 33.95
Nonvested at December 31, 2015 2,557,159 $ 31.88
(a) Excludes 1,817,883 and 1,535,791 of performance share awards issued to retirement-eligible employees as of December 31, 2015 and 2014, respectively, as they are fully
vested.
(b) Represents performance share awards that vested but were not distributed to retirement-eligible employees during 2015.
The weighted average grant date fair value (per share) of performance share awards granted during the years ended December 31, 2015,
2014 and 2013 was $35.88, $28.75, and $31.55, respectively. During the years ended December 31, 2015, 2014 and 2013, Exelon settled
performance shares with a fair value totaling $46 million, $27 million and $26 million, respectively, of which $29 million, $13 million and $12 million
was paid in cash, respectively. As of December 31, 2015, $27 million of total unrecognized compensation costs related to nonvested performance
shares are expected to be recognized over the remaining weighted-average period of 1.4 years.
The following table presents the balance sheet classification of obligations related to outstanding performance share awards not yet settled:
December 31,
2015 2014
Current liabilities $ 28 $ 28
Deferred credits and other liabilities 32 36
Common stock 35 33
Total $ 95 $ 97
(a) Represents the current liability related to performance share awards expected to be settled in cash.
(b) Represents the long-term liability related to performance share awards expected to be settled in cash.
388
(a)
(b)
(a)
(a)
(b)
Source: BALTIMORE GAS & ELECTRIC CO, 10-K, February 10, 2016 Powered by Morningstar® Document Research℠
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