Equity Compensation

6 Months Ended

Jun. 30, 2017

Disclosure of Compensation Related Costs, Share-based Payments [Abstract]

Equity Compensation

8. EQUITY COMPENSATION

Great Plains Energy's Long-Term Incentive Plan is an equity compensation plan approved by Great Plains Energy's shareholders. The Long-Term Incentive Plan permits the grant of restricted stock, restricted stock units, bonus shares, stock options, stock appreciation rights, director shares, director deferred share units, performance shares and other stock-based awards to directors, officers and other employees of Great Plains Energy and KCP&L. Forfeiture rates are based on historical forfeitures and future expectations and are reevaluated annually.

The following table summarizes Great Plains Energy's and KCP&L's equity compensation expense and the associated income tax (expense) benefit.

	Three Months Ended June 30						Year to Date June 30
		2017		2016			2017		2016
Great Plains Energy		(millions)
Equity compensation expense		$	1.4	$	(0.2	)	$	2.6	$	3.5
Income tax (expense) benefit		0.5		(0.2		)	1.1		1.3
KCP&L
Equity compensation expense		$	0.9	$	(0.2	)	$	1.7	$	2.3
Income tax (expense) benefit		0.4		(0.2		)	0.8		0.8

Performance Shares

Performance share activity year to date June 30, 2017, is summarized in the following table.

	Performance Shares			Grant Date Fair Value*
Beginning balance January 1, 2017		625,100			$	28.13
Granted		236,433			31.26
Earned		(212,992	)		28.48
Forfeited		(95,065	)		29.25
Ending balance June 30, 2017		553,476			29.12

* weighted-average

At June 30, 2017, the remaining weighted-average contractual term was 1.6 years.  There were no shares granted for the three months ended June 30, 2017, and 2016, respectively. The weighted-average grant-date fair value of shares granted was $31.26 and $31.41 year to date June 30, 2017, and 2016, respectively. At June 30, 2017, there was $8.8 million of total unrecognized compensation expense, net of forfeiture rates, related to performance shares granted under the Long-Term Incentive Plan, which will be recognized over the remaining weighted-average contractual term.  The total fair value of performance shares earned and paid was $6.1 million and $7.4 million year to date June 30, 2017, and 2016, respectively.

The fair value of performance share awards is estimated using the market value of the Company's stock at the valuation date and a Monte Carlo simulation technique that incorporates assumptions for inputs of expected volatilities, dividend yield and risk-free rates. Expected volatility is based on daily stock price change during a historical period commensurate with the remaining term of the performance period of the grant. The risk-free rate is based upon the rate at the time of the evaluation for zero-coupon government bonds with a maturity consistent with the remaining performance period of the grant. The dividend yield is based on the most recent dividends paid and the actual closing stock price on the valuation date. For shares granted in 2017, inputs for expected volatility, dividend yield and risk-free rates were 18%, 3.80% and 1.58%, respectively.

Restricted Stock

Restricted stock activity year to date June 30, 2017, is summarized in the following table.

	Nonvested Restricted Stock			Grant Date Fair Value*
Beginning balance January 1, 2017		249,672			$	27.20
Granted and issued		78,840			28.60
Vested		(102,975	)		27.10
Forfeited		(21,864	)		28.08
Ending balance June 30, 2017		203,673			27.70

* weighted-average

At June 30, 2017, the remaining weighted-average contractual term was 1.7 years.  There were no shares granted for the three months ended June 30, 2017. The weighted-average grant-date fair value of shares granted was $28.17 for the three months ended June 30, 2016.  The weighted-average grant-date fair value of shares granted was $28.60 and $29.41 year to date June 30, 2017, and 2016, respectively. At June 30, 2017, there was $2.9 million of total unrecognized compensation expense, net of forfeiture rates, related to nonvested restricted stock granted under the Long-Term Incentive Plan, which will be recognized over the remaining weighted-average contractual term. Total fair value of shares vested was $0.5 million and $2.8 million for the three months ended and year to date June 30, 2017, respectively. No shares vested for the three months ended June 30, 2016. Total fair value of shares vested was $1.6 million year to date June 30, 2016.