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SEC Filing Details

10-K
NRG ENERGY, INC. filed this Form 10-K on 03/01/2018
Entire Document
 

Restricted Stock Units
As of December 31, 2017, RSUs granted under the Company's LTIPs typically have three-year graded vesting schedules beginning on the grant date. Fair value of the RSUs is based on the closing price of NRG common stock on the date of grant. The following table summarizes the Company's non-vested RSU awards and changes during the year:
 
Units(a)
 
Weighted Average Grant-Date Fair Value per Unit
Non-vested at December 31, 2016
1,980,141

 
$
19.29

Granted
1,247,075

 
12.44

Forfeited
(176,132
)
 
14.98

Vested
(673,271
)
 
23.65

Non-vested at December 31, 2017
2,377,813

 
14.63

(a) As of December 31, 2017, 20,822 RSUs granted to GenOn employees remain outstanding.
The total fair value of RSUs vested during the years ended December 31, 2017, 2016, and 2015, was $19 million, $11 million and $10 million, respectively. The weighted average grant date fair value of RSUs granted during the years ended December 31, 2017, 2016, and 2015 was $12.44, $11.54, and $27.31, respectively.
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(a)
 
Weighted Average Grant-Date Fair Value per Unit
Outstanding at December 31, 2016
453,674

 
$
21.54

Granted
120,251

 
16.76

Converted to Common Stock
(146,777
)
 
17.62

Outstanding at December 31, 2017
427,148

 
21.54

(a) There were no DSUs granted to GenOn employees and outstanding as of December 31, 2017.
The aggregate intrinsic values for DSUs outstanding as of December 31, 2017, 2016, and 2015 were approximately $12 million, $6 million, and $5 million, respectively. The aggregate intrinsic values for DSUs converted to common stock for the years ended December 31, 2017, 2016, and 2015 were $4 million, $1 million, and less than a million, respectively. The weighted average grant date fair value of DSUs granted during the years ended December 31, 2017, 2016, and 2015 was $16.76, $16.85 and $25.14, respectively.
Performance Stock Units
PSUs entitle the recipient to stock upon vesting. The amount of the award is subject to the Company's achievement of certain performance measures over the vesting period. As of December 31, 2017, non-vested PSUs consist of Market Stock Units, or MSUs, and Relative Performance Stock Units, or RPSUs.
Relative Performance Stock Units — RPSUs are restricted grants where the quantity of shares increases and decreases alongside the Company's Total Shareholder Return, or TSR, relative to the TSR of the Company’s current proxy peer group and the total returns of select indexes, or Peer Group. Each RPSU 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. The number of shares of NRG common stock to be paid (if any) as of the vesting date for each RPSU will depend on the Company’s percentile rank within the Peer Group. The number of shares of common stock to be paid as of the vesting date for each RPSU is linearly interpolated for TSR performance between the following points: (i) 0% if ranked below the 25th percentile; (ii) 25% if ranked at the 25th percentile; (iii) 100% if ranked at the 55th percentile (or the 65th percentile if the Company’s absolute TSR is less than negative 15%); and (iv) 200% if ranked at the 75th percentile or above. The value of the common stock on the date of grant is based on the closing price of NRG common stock on the date of grant.

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