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CHESAPEAKE ENERGY CORPORATION AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (Continued) the grant date to determine the grant date fair value of the CRSUs. The CRSU liability will be adjusted quarterly, based on changes in our stock price, through the end of each vesting period. The following table presents a summary of our liability-classified awards:

2018 PSU Awards: Payable 2019, 2020 and 2021 2017 PSU Awards: Payable 2020 2016 PSU Awards: Payable 2019 2018 CRSU Awards: Payable 2019, 2020 and 2021

December 31, 2018 Fair Value Vested Liability ($ in millions)

Grant Date Fair Value ($ in millions)

Units

3,959,647

$

12

$

11

$

1,217,774

$

8

$

3

$

1

2,348,893

$

10

$

6

$

4

15,189,197

$

46

$

32

$

We recognized the following compensation costs (credits), net of actual forfeitures, related to our liability-classified awards for the years ended December 31, 2018, 2017 and 2016: Years Ended December 31, 2018 2017 2016 ($ in millions) $ 7 $ (4) $ 14 3 — — 2 — — — — 1 $ 12 $ (4) $ 15

General and administrative expenses Oil and natural gas properties Oil, natural gas and NGL production expenses Restructuring and other termination costs Total liability-classified awards compensation 12. Employee Benefit Plans

Our qualified 401(k) profit sharing plan (401(k) Plan) is the Chesapeake Energy Corporation Savings and Incentive Stock Bonus Plan, which is open to employees of Chesapeake and all our subsidiaries. Eligible employees may elect to defer compensation through voluntary contributions to their 401(k) Plan accounts, subject to plan limits and those set by the IRS. We match employee contributions dollar for dollar (subject to a maximum contribution of 15% of an employee's base salary and performance bonus) in cash. We contributed $31 million, $35 million and $39 million to the 401(k) Plan in 2018, 2017 and 2016, respectively. We also maintain a nonqualified deferred compensation plan (DC Plan). To be eligible to participate in the DC Plan, an active employee must have a base salary of at least $150,000, have a hire date on or before December 1, immediately preceding the year in which the employee is able to participate, or be designated as eligible to participate. We match 100% of employee contributions up to 15% of base salary and performance bonus in the aggregate for the DC Plan with Chesapeake common stock, and an employee who is at least age 55 may elect for the matching contributions to be made in any one of the DC Plan’s investment options. The maximum compensation that can be deferred by employees under all of our deferred compensation plans, including the Chesapeake 401(k) Plan, is a total of 75% of base salary and 100% of performance bonus. The participant may choose separate deferral election percentages for both plans. We contributed $7 million, $8 million and $9 million to the DC Plan during 2018, 2017 and 2016, respectively, to fund the match. The deferred compensation company match of 15% has a five-year vesting schedule based on years of service. Any participant who is active on December 31 of the plan year will receive the deferred compensation company match which will be awarded on an annual basis.

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Profile for Chesapeake Energy

2018 Annual Report  

2018 Annual Report