Annual report pursuant to Section 13 and 15(d)

Equity

v3.6.0.2
Equity
 12 Months Ended
Dec. 31, 2016
Equity [Abstract]  
Equity

11. Equity

Dividends and Distributions

Our board of directors declared the following dividends in 2015 and 2016:

 

Announced Date

    Record Date      Pay Date      Amount per share  

3/17/15

      3/30/15        4/9/15      $ 0.26  

6/16/15

      6/30/15        7/9/15      $ 0.26  

9/16/15

      9/30/15        10/8/15      $ 0.26  

12/15/15

      12/30/15 *       1/7/16      $ 0.30  

3/15/16

      3/30/16        4/7/16      $ 0.30  

6/07/16

      7/06/16        7/14/16      $ 0.30  

9/15/16

      10/05/16        10/13/16      $ 0.30  

12/13/16

      12/29/16 *       1/12/17      $ 0.33  

 

* These dividends will be treated as distributions in the following year for tax purposes.

We have an effective universal shelf registration statement registering the potential offer and sale, from time to time and in one or more offerings, of any combination of our common stock, preferred stock, depositary shares and warrants and rights (collectively referred to as the “securities”). We may offer the securities directly, through agents, or to or through underwriters by means of ordinary brokers’ transactions on the NYSE or otherwise at market prices prevailing at the time of sale or at negotiated prices and may include “at the market” (“ATM”) offerings or sales “at the market,” to or through a market maker or into an existing trading market on an exchange or otherwise. We completed the following public offerings and ATM offerings of our common stock in 2015 and 2016:

 

Closing Date

    Common Stock
Offerings		    Shares
Issued 1		      Price
Per Share 		     Net
Proceeds 2		  
          (amounts in millions, except per share amounts)  

5/4/15

    Public Offering      4.600      $ 18.50 3     $ 82  

10/19/15

    Public Offering      5.750      $ 18.00 3     $ 99  

6/21/16

    Public Offering      4.600      $ 19.78 4     $ 91  

5/9/16 to 6/30/16

    ATM      0.065      $ 20.31 5     $ 1  

11/09/16

    Public Offering      4.025      $ 19.28 4     $ 77  

12/13/16 to 12/29/16

    ATM      0.407      $ 19.47 5     $ 8  

 

1 Includes shares issued in connection with the exercise of the underwriters’ option to purchase additional shares.
2 Net proceeds from the offerings is shown after deducting underwriting discounts, commissions and other offering costs.
3 Represents the public offering price per share.
4 Represents the price per share at which the underwriters in our public offerings purchased shares from our company.
5 Represents the average price per share at which investors in our ATM offerings purchased shares from our company.

 

Awards of Shares of Restricted Common Stock under our 2013 Plan

We have issued both awards with service conditions and awards with both service and performance conditions. During the year ended December 31, 2016, our board of directors awarded employees and directors 368,513 shares of restricted common stock that vest in 2016 to 2019 and 292,542 shares of restricted common stock to certain employees that vest upon the achievement of certain performance targets. As of December 31, 2016, we have concluded that it is probable that the performance conditions will be met.

A summary of equity-based compensation expense and the fair value of shares vested on the vesting date for the years ended December 31, 2016, 2015, and 2014 is as follows:

 

         2016              2015              2014      
     (in millions)  

Equity-based compensation expense

    $ 10      $ 11      $ 5  

Fair value of awards vested on vesting date

    $ 14      $ 6      $ 2  

The total unrecognized compensation expense related to awards of shares of restricted common stock was approximately $10 million as of December 31, 2016, that is expected to be recognized over a weighted-average term of approximately two years.

As part of the implementation of ASU No. 2016-09 “Compensation—Stock Compensation (Topic 718), Improvements to Employee Share-Based Payment Accounting”, we began to recognize forfeitures when they occur as opposed to the previous requirement under which we reduced equity based compensation expense for an estimated forfeiture rate of up to 5%. Expenses recognized year to date, and the adjustment to retained earnings for the equity-based compensation expense previously recognized, from the adoption of this change was approximately $1 million.

A summary of the unvested shares of restricted common stock that have been issued is as follows:

 

     Restricted Shares of
Common Stock 		     Weighted Average
Share Price 		     Value
(in millions) 		 

Balance—December 31, 2013

      598,815      $ 12.50      $ 7.5  

Granted

      529,100        14.18        7.5  

Vested

      (149,709 )       12.50        (1.9 ) 

Forfeited

      (13,386 )       12.99        (0.2 ) 
  

 

 

     

 

 

     

 

 

  

Balance—December 31, 2014

      964,820      $ 13.41      $ 12.9  

Granted

      586,648        17.29        10.2  

Vested

      (285,289 )       13.61        (3.9 ) 

Forfeited

      (18,110 )       15.54        (0.3 ) 
  

 

 

     

 

 

     

 

 

  

Ending Balance—December 31, 2015

      1,248,069      $ 15.16      $ 18.9  

Granted

      661,055        18.62        12.3  

Vested

      (716,264 )       14.03        (10.0 ) 

Forfeited

      (11,188 )       17.25        (0.2 ) 
  

 

 

     

 

 

     

 

 

  

Ending Balance—December 31, 2016

      1,181,672      $ 17.76      $ 21.0