DTE Energy 2012 Annual Report Download - page 109
Download and view the complete annual report
Please find page 109 of the 2012 DTE Energy annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.-
1 -
2
-
3
-
4
-
5
-
6
-
7
-
8
-
9
-
10
-
11
-
12
-
13
-
14
-
15
-
16
-
17
-
18
-
19
-
20
-
21
-
22
-
23
-
24
-
25
-
26
-
27
-
28
-
29
-
30
-
31
-
32
-
33
-
34
-
35
-
36
-
37
-
38
-
39
-
40
-
41
-
42
-
43
-
44
-
45
-
46
-
47
-
48
-
49
-
50
-
51
-
52
-
53
-
54
-
55
-
56
-
57
-
58
-
59
-
60
-
61
-
62
-
63
-
64
-
65
-
66
-
67
-
68
-
69
-
70
-
71
-
72
-
73
-
74
-
75
-
76
-
77
-
78
-
79
-
80
-
81
-
82
-
83
-
84
-
85
-
86
-
87
-
88
-
89
-
90
-
91
-
92
-
93
-
94
-
95
-
96
-
97
-
98
-
99 -
100 -
101 -
102 -
103 -
104 -
105 -
106 -
107 -
108 -
109 -
110 -
111 -
112 -
113 -
114 -
115 -
116 -
117 -
118 -
119 -
120
-
121
-
122
-
123
-
124
-
125
-
126
-
127
-
128
-
129
-
130
-
131
-
132
-
133
-
134
-
135
-
136
-
137
-
138
-
139
-
140
-
141
-
142
-
143
-
144
-
145
-
146
-
147
-
148
-
149
-
150
 |
 |
Table of Contents
Performance Share Awards
Performance shares awarded under the plan are for a specified number of shares of common stock that entitle the holder to receive a cash payment,
shares of common stock or a combination thereof. The final value of the award is determined by the achievement of certain performance objectives and market
conditions. The awards vest at the end of a specified period, usually three years. The Company accounts for performance share awards by accruing
compensation expense over the vesting period based on: (i) the number of shares expected to be paid which is based on the probable achievement of
performance objectives; and (ii) the closing stock price market value. The settlement of the award is based on the closing price at the settlement date.
The Company recorded compensation expense as follows:
Compensation expense
$ 53
$ 36
Cash settlements (a)
$ 3
$ 3
Stock settlements (a)
$ 25
$ 23
_______________________________________
(a) Sum of cash and stock settlements approximates the intrinsic value of the liability.
During the vesting period, the recipient of a performance share award has no shareholder rights. Performance shares granted are entitled to dividend
equivalent payments before the performance shares granted are earned and vested. During the period beginning on the date the performance shares are awarded
and ending on the certification date of the performance objectives, the number of performance shares awarded will be increased, assuming full dividend
reinvestment at the fair market value on the dividend payment date. The cumulative number of performance shares will be adjusted to determine the final
payment bases on the performance objectives achieved. Performance share awards are nontransferable and are subject to risk of forfeiture.
The following table summarizes the Company’s performance share activity for the period ended December 31, 2012:
Balance at January 1, 2012 1,608,733
Grants 590,098
Forfeitures (59,712)
Payouts (504,755)
Balance at December 31, 2012 1,634,364
Unrecognized Compensation Costs
As of December 31, 2012, there was $58 million of total unrecognized compensation cost related to non-vested stock incentive plan arrangements. That
cost is expected to be recognized over a weighted-average period of 1.37 years.
Options $ —
0.15
Stock awards 11
1.02
Performance shares 47
1.46
$58
1.37
A detailed analysis of the changes in assets and liabilities that are reported in the Consolidated Statements of Cash Flows follows:
107