Sunoco 2013 Annual Report Download - page 85

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October 5, 2012 are time-vested grants, the vesting of which is conditioned solely upon continued employment or service as of
the applicable vesting date. Such awards generally vest over a five-year period.
The following table summarizes information regarding restricted unit award activity for the periods presented:
Number
of Units Weighted Average Grant Date Fair Value
Predecessor
Granted, non-vested and outstanding, December 31, 2010 444,093 $ 22.59
Granted (1) 189,714 $ 31.13
Performance factor adjustment 184,113 $ 19.88
Vested (413,934) $ 20.05
Cancelled/forfeited (23,010) $ 27.66
Granted, non-vested and outstanding, December 31, 2011 380,976 $ 27.86
Granted (1) 192,459 $ 35.92
Performance factor adjustment 137,941 $ 25.24
Vested (47,916) $ 30.16
Cancelled/forfeited (20,409) $ 31.47
Granted, non-vested and outstanding, October 4, 2012 643,051 $ 29.42
Successor
Granted, non-vested and outstanding, October 5, 2012 643,051 $ 29.42
Granted 128,573 $ 50.55
Performance factor adjustment 12,554 $ 31.51
Vested (2) (356,568) $ 25.67
Cancelled/forfeited — $ —
Granted, non-vested and outstanding, December 31, 2012 427,610 $ 38.96
Granted 429,123 $ 60.01
Performance factor adjustment 101,310 $ 31.51
Vested (281,834) $ 36.66
Cancelled/forfeited (36,628) $ 48.38
Granted, non-vested and outstanding, December 31, 2013 639,581 $ 52.37
(1) Of the total number of restricted units granted, the portion that represents units that are subject to performance factors may ultimately
be issued at 0 to 200 percent of the original grant, based on the Partnership's achievement of performance goals for total shareholder
return and cash distributions relative to a selected peer group of competitors.
(2) Relates primarily to awards that vested as a result of the acquisition of the general partner by ETP (Note 1). The unit-based
compensation expense attributable to these awards that was recognized during the period from October 5, 2012 to December 31,
2012 was not material as the majority of such awards were scheduled to vest in December 2012.
The total fair value of restricted unit awards vested for the year ended December 31, 2013, for the periods from
October 5, 2012 to December 31, 2012 and from January 1, 2012 to October 4, 2012, and for the year ended December 31,
2011 was $21, $18, $2, and $18 million, respectively. As of December 31, 2013, estimated compensation cost related to non-
vested awards not yet recognized was $21 million, and the weighted average period over which this cost is expected to be
recognized in expense is 2.8 years. The number of restricted stock units outstanding and the total compensation cost related to
non-vested awards not yet recognized reflects the Partnership's estimates of performance factors for certain restricted unit
awards.
The estimated fair value of restricted units under the LTIP is determined based upon the nature of the award. For
performance-based awards, the fair value of the restricted units subject to the cash distribution performance targets was
determined using the grant date market price of the Partnership's common units, subject to a performance factor adjustment
over the course of the vesting. For performance-based awards subject to market-based performance targets, the fair value was
determined using a Monte Carlo simulation. The fair value of the Partnership's time-vested awards is based on the grant-date
market price of the Partnership's common units.
The Partnership recognizes compensation expense on a straight-line basis over the requisite service period, and estimates
forfeitures over the requisite service period when recognizing compensation expense.