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CHESAPEAKE ENERGY CORPORATION AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (Continued) The following table presents a summary of our 2015, 2014 and 2013 PSU awards: Fair Value as of Grant Date

Units

Liability for Vested Amount(a)

Fair Value(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:

General and administrative expenses ...................................................... Restructuring and other termination costs ................................................ Marketing, gathering and compression .................................................... Oil and natural gas properties .................................................................. Oil, natural gas and NGL production expenses ........................................ Oilfield services expenses ........................................................................ Total ...............................................................................................

Years Ended December 31, 2015 2014 2013 ($ in millions) $ (19) $ (4) $ 34 (19) (19) 29 (1) — 2 (2) 3 9 — — 2 — — 1 $ (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.

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Profile for Chesapeake Energy

2015 Annual Report  

2015 Annual Report