SEC Filings

10-K
NRG ENERGY, INC. filed this Form 10-K on 02/29/2016
Entire Document
 
                

Deferred Stock Units
DSUs represent the right of a participant to be paid one share of NRG common stock at the end of a deferral period established under the terms of the award. DSUs granted under the Company's LTIPs are fully vested at the date of issuance. Fair value of the DSUs, which is based on the closing price of NRG common stock on the date of grant, is recorded as compensation expense in the period of grant.
The following table summarizes the Company's outstanding DSU awards and changes during the year:
 
Units
 
Weighted Average Grant-Date Fair Value per Unit
 
(In whole)
Outstanding at December 31, 2014
384,663

 
$
21.21

Granted
70,929

 
25.14

Converted to Common Stock
(28,014
)
 
24.78

Outstanding at December 31, 2015
427,578

 
21.88


The aggregate intrinsic values for DSUs outstanding as of December 31, 2015, 2014, and 2013 were approximately $5 million, $10 million, and $7 million respectively. The aggregate intrinsic values for DSUs converted to common stock for the years ended December 31, 2015, 2014, and 2013 were less than a million, $1 million and $12 million, respectively. The weighted average grant date fair value of DSUs granted during the years ended December 31, 2015, 2014, and 2013 was $25.14, $35.63 and $23.18, respectively.
Market Stock Units
MSUs are restricted grants where the quantity of shares increases and decreases alongside the Company's Total Shareholder Return, or TSR. Each MSU represents the potential to receive NRG common stock after the completion of the performance period, typically three years of service from the date of grant. For awards prior to 2014, the number of shares of NRG common stock to be paid (if any) as of the vesting date for each MSU will depend on the TSR. The number of shares of common stock to be paid as of the vesting date for each MSU is equal to: (i) one half of one share of common stock if the TSR has decreased by no more than 50% of the value of the common stock on the date of grant; (ii) one share of common stock, if the TSR equals the value of the common stock on the date of grant; and (iii) two shares of common stock if the TSR is 200% or greater of the value of the common stock on the date of grant. If the TSR is less than 50% of the value of the common stock on the date of grant, no common stock will be paid. If the TSR is between 50% and 200%, shares awarded are interpolated. The value of the common stock on the date of grant is based on the 20-day average of the common stock closing price.
For 2014 and future awards, the number of shares of NRG common stock to be paid (if any) as of the vesting date for each MSU will depend on the TSR. The number of shares of common stock to be paid as of the vesting date for each MSU is equal to: (i) three quarters of one share of common stock if the TSR has decreased by no more than 25% of the value of the common stock on the date of grant; (ii) one share of common stock, if the TSR equals the value of the common stock on the date of grant; and (iii) two shares of common stock if the TSR is 200% or greater of the value of the common stock on the date of grant. If the TSR is less than 75% of the value of the common stock on the date of grant, no common stock will be paid. If the TSR is between 75% and 200%, shares awarded are interpolated. The value of the common stock on the date of grant is based on the 20-day average of the common stock closing price.
The following table summarizes the Company's non-vested MSU awards and changes during the year:
 
Units
 
Weighted Average Grant-Date Fair Value per Unit
 
(In whole)
Non-vested at December 31, 2014
2,304,569

 
$
26.13

Granted
1,108,410

 
26.68

Vested
(1,230,410
)
 
21.86

Forfeited
(202,412
)
 
29.44

Non-vested at December 31, 2015
1,980,157

 
29.54

The weighted average grant date fair value of MSUs granted during the years ended December 31, 2015, 2014 and 2013, was $26.68, $31.90 and $27.46, respectively. In January 2016, an additional 1,239,829 market stock units were forfeited due to employee terminations and not meeting performance targets.

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