XML 80 R19.htm IDEA: XBRL DOCUMENT v2.4.1.9
SHARE-BASED COMPENSATION
12 Months Ended
Dec. 31, 2014
Share-Based Compensation  
Disclosure of Compensation Related Costs, Share-based Payments [Text Block]
SHARE-BASED COMPENSATION
 
The LTECP provides for grants of nonqualified and incentive stock options, stock appreciation rights, restricted stock, performance shares, performance units and restricted stock units to certain key employees and non-employee directors. The LTECP currently authorizes the issuance of up to five million shares of SCANA’s common stock, no more than one million of which may be granted in the form of restricted stock.
 
Compensation cost is measured based on the grant-date fair value of the instruments issued and is recognized over the period that an employee provides service in exchange for the award. Share-based payment awards do not have non-forfeitable rights to dividends or dividend equivalents. To the extent that the awards themselves do not vest, dividends or dividend equivalents which would have been paid on those awards do not vest.
 
Liability Awards
 
The 2012-2014, 2013-2015 and 2014-2016 performance cycles provide for performance measurement and award determination on an annual basis, with payment of awards being deferred until after the end of the three-year performance cycle.  In each performance cycle, 20% of the performance award was granted in the form of restricted share units, which are liability awards payable in cash and are subject to forfeiture in the event of termination of employment prior to the end of the cycle, subject to exceptions for retirement, death, disability or change in control.  The remaining 80% of the award was granted in performance shares, which are subject to forfeiture in the event of termination of employment prior to the end of the cycle, subject to exceptions for retirement, death or disability. Each performance share has a value that is equal to, and changes with, the value of a share of SCANA common stock. Dividend equivalents are accrued on the performance shares and the restricted share units. Payouts of performance share awards are determined by SCANA’s performance against pre-determined measures of TSR as compared to a peer group of utilities (weighted 50%) and growth in “GAAP-adjusted net earnings per share from operations” (weighted 50%). 
 
Compensation cost of liability awards is recognized over their respective three-year performance periods based on the estimated fair value of the award, which is periodically updated based on expected ultimate cash payout, and is reduced by estimated forfeitures. Awards under the 2012-2014 performance cycle were paid in cash at SCANA’s discretion in February 2015. Cash-settled liabilities related to the performance cycles were paid totaling approximately $11.8 million in 2014, $12.2 million in 2013, and $11.8 million in 2012.
 
Fair value adjustments for performance awards resulted in compensation expense recognized in the statements of income totaling approximately $20.3 million in 2014, $8.7 million in 2013 and $15.0 million in 2012. Fair value adjustments resulted in capitalized compensation costs of $3.1 million in 2014, $1.4 million in 2013 and $2.7 million in 2012.
SCE&G  
Share-Based Compensation  
Disclosure of Compensation Related Costs, Share-based Payments [Text Block]
SHARE-BASED COMPENSATION
 
SCE&G participates in the LTECP which provides for grants of nonqualified and incentive stock options, stock appreciation rights, restricted stock, performance shares, performance units and restricted stock units to certain key employees and non-employee directors. The LTECP currently authorizes the issuance of up to five million shares of SCANA’s common stock, no more than one million of which may be granted in the form of restricted stock.
 
Compensation cost is measured based on the grant-date fair value of the instruments issued and is recognized over the period that an employee provides service in exchange for the award. Share-based payment awards do not have non-forfeitable rights to dividends or dividend equivalents. To the extent that the awards themselves do not vest, dividends or dividend equivalents which would have been paid on those awards do not vest.
 
Liability Awards
 
The 2012-2014, 2013-2015, and 2014-2016 performance cycles provide for performance measurement and award determination on an annual basis, with payment of awards being deferred until after the end of the three-year performance cycle.  In each performance cycle, 20% of the performance award was granted in the form of restricted share units, which are liability awards payable in cash and are subject to forfeiture in the event of termination of employment prior to the end of the cycle, subject to exceptions for retirement, death, disability or change in control. The remaining 80% of the award was granted in performance shares, which are subject to forfeiture in the event of termination of employment prior to the end of the cycle, subject to exceptions for retirement, death or disability. Each performance share has a value that is equal to, and changes with, the value of a share of SCANA common stock. Dividend equivalents are accrued on the performance shares and the restricted share units. Payouts of performance share awards are determined by SCANA’s performance against pre-determined measures of TSR as compared to a peer group of utilities (weighted 50%) and growth in “GAAP-adjusted net earnings per share from operations” (weighted 50%). 
 
Compensation cost of liability awards is recognized over their respective three-year performance periods based on the estimated fair value of the award, which is periodically updated based on expected ultimate cash payout, and is reduced by estimated forfeitures. Awards under the 2012-2014 performance cycle were paid in cash at SCANA’s discretion in February 2015. Cash-settled liabilities related to the performance cycles were paid totaling approximately $1.9 million in 2014, $3.2 million in 2013 and $8.7 million in 2012.
 
Fair value adjustments for performance awards resulted in compensation expense recognized in the statements of income totaling approximately $12.6 million in 2014, $5.5 million in 2013 and $9.5 million in 2012. Fair value adjustments resulted in capitalized compensation costs of $0.6 million in 2014, $0.5 million in 2013 and $2.1 million in 2012.