Stock-Based Compensation Expense

9 Months Ended

Sep. 30, 2017

Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]

Stock-Based Compensation Expense

Note 16. Stock-Based Compensation Expense

Pursuant to the 2016 Avangrid, Inc. Omnibus Incentive Plan 5,327 additional performance stock units (PSUs) were granted to certain officers and employees of AVANGRID in March 2017. The PSUs will vest upon achievement of certain performance- and market-based metrics related to the 2016 through 2019 plan and will be payable in three equal installments in 2020, 2021 and 2022. The fair value on the grant date was determined based on $31.80 per share.

In connection with the acquisition of UIL, certain PSUs granted under the UIL 2008 Stock and Incentive Compensation Plan are outstanding, which are payable in AVANGRID shares in 2018 and vest based upon the achievement of certain pre-determined performance objectives.

The total stock-based compensation expense, which is included in operations and maintenance of the condensed consolidated statements of income, for the three and nine months ended September 30, 2017 was $1.4 million and $5.3 million, respectively, and for the three and nine months ended September 30, 2016 was $1.1 million and $1.3 million, respectively.

Before 2016, AVANGRID’s historical stock-based compensation expense and liabilities were based on shares of Iberdrola and not on shares of AVANGRID. These Iberdrola shares-based awards were early terminated at the end of 2015, and the remaining liability will be settled in March 2018.The total liability relating to those awards, which is included in other current and non-current liabilities, was $5.7 million and $9.5 million as of September 30, 2017 and December 31, 2016, respectively.