XML 39 R19.htm IDEA: XBRL DOCUMENT v3.3.1.900
SHARE-BASED COMPENSATION
12 Months Ended
Dec. 31, 2015
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.
 
The 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. The 2015-2017 award is based on performance over a single three-year cycle. In each performance cycle of the 2013-2015 and 2014-2016 awards, 20% of the performance awards were granted in the form of restricted share units, which are liability awards payable in cash and 80% of the awards were granted in performance shares, each of which has a value that is equal to, and changes with, the value of a share of SCANA common stock. For the 2015-2017 awards, 30% are in the form of restricted share units and 70% are in the form of performance shares. Dividend equivalents are accrued on the performance shares and the restricted share units. Performance awards and related dividend equivalents are subject to forfeiture in the event of termination of employment prior to the end of the cycle, subject to certain exceptions. 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 (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 2013-2015 performance cycle were paid in cash totaling $18.4 million at SCANA’s discretion in February 2016. Cash-settled liabilities related to earlier performance cycles totaled approximately $20.8 million in 2015, $11.8 million in 2014, and $12.2 million in 2013.
 
Fair value adjustments for all performance cycles resulted in compensation expense recognized in the statements of income totaling approximately $18.0 million in 2015, $20.3 million in 2014 and $8.7 million in 2013. Such fair value adjustments also resulted in capitalized compensation costs of $2.3 million in 2015, $3.1 million in 2014 and $1.4 million in 2013. At December 31, 2015, SCANA had $20.4 million of unrecognized compensation cost, which is expected to be recognized over a weighted-average period of 18 months.
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.
 
The 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. The 2015-2017 award is based on performance over a single three-year cycle. In each performance cycle of the 2013-2015 and 2014-2016 awards, 20% of the performance awards were granted in the form of restricted share units, which are liability awards payable in cash and 80% of the awards were granted in performance shares each of which has a value that is equal to, and changes with, the value of a share of SCANA common stock. For the 2015-2017 awards, 30% are in the form of restricted share units and 70% are in the form of performance shares. Dividend equivalents are accrued on the performance shares and the restricted share units. Performance awards and related dividend equivalents are subject to forfeiture in the event of termination of employment prior to the end of the cycle, subject to certain exceptions. 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 (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 2013-2015 performance cycle were paid in cash totaling $3.7 million at SCANA’s discretion in February 2016. Cash-settled liabilities related to earlier performance cycles totaled approximately $6.3 million in 2015, $1.9 million in 2014 and $3.2 million in 2013.
 
Fair value adjustments for all performance cycles resulted in compensation expense recognized in the statements of income totaling approximately $12.2 million in 2015, $12.6 million in 2014 and $5.5 million in 2013. Such fair value adjustments also resulted in capitalized compensation costs of $0.6 million in 2015, $0.6 million in 2014 and $0.5 million in 2013. At December 31, 2015 SCE&G's unrecognized compensation cost was insignificant.