Page 157 - DCP AR2011 Dev

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DCP MIDSTREAM PARTNERS, LP
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
Years Ended December 31, 2011, 2010 and 2009 — (Continued)
At December 31, 2011, there was approximately $0.4 million of unrecognized compensation expense
related to the Performance Units that is expected to be recognized over a weighted-average period of 2 years.
The following table presents information related to the Performance Units:
Units
Grant Date
Weighted-
Average Price
per Unit
Measurement
Date Price
per Unit
Outstanding at January 1, 2009 . . . . . . . . . . . . . . . . . . . . . . . . . . . 52,020 $34.23
Granted . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 52,450 $10.05
Vested . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (37,330) $34.51
Outstanding at December 31, 2009 . . . . . . . . . . . . . . . . . . . . . . . . 67,140 $15.18
Granted . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16,630 $31.80
Vested . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (14,215) $33.44
Forfeited . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (2,205) $15.61
Outstanding at December 31, 2010 . . . . . . . . . . . . . . . . . . . . . . . . 67,350 $15.42
Granted . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10,580 $41.80
Vested (a) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (50,720) $10.05
Forfeited . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . — $ —
Outstanding at December 31, 2011 . . . . . . . . . . . . . . . . . . . . . . . . 27,210 $35.69
$47.47
Expected to vest (b) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19,047 $35.69
$47.47
(a) The units vested at 199%.
(b) Based on our December 31, 2011 estimated achievement of specified performance targets, the
performance estimate for units granted in 2011 is 100%, and for units granted in 2010 is 100%. The
estimated forfeiture rate for units granted in 2011 is 30% and for units granted in 2010 is 30%.
The estimate of Performance Units that are expected to vest is based on highly subjective assumptions that
could potentially change over time, including the expected forfeiture rate and achievement of performance
targets. Therefore, the amount of unrecognized compensation expense noted above does not necessarily
represent the value that will ultimately be realized in our consolidated statements of operations.
The following table presents the fair value of units vested and the unit-based liabilities paid for unit based
awards related to Performance Units, including the related DERs:
Year Ended December 31,
2011 2010 (a) 2009
(Millions)
Fair value of units vested . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $5.3 $ — $1.1
Unit-based liabilities paid . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ — $0.8 $0.3
(a) The liabilities paid in 2010 relate to 22,860 units and DERs that vested in 2009. The remaining units that
vested in 2009 were paid in 2009.
Phantom Units
— In conjunction with our initial public offering, in January 2006 our General Partner’s
board of directors awarded phantom LPUs, or Phantom Units, to key employees, and to directors who are not
officers or employees of affiliates of the General Partner.
In 2011, we granted 4,000 Phantom Units, pursuant to the LTIP, to directors who are not officers or
employees of affiliates of the General Partner as part of their annual director fees for 2011. All of these units
vested in 2011and were settled in units.
In 2010, we granted 5,200 Phantom Units, pursuant to the LTIP, to directors who are not officers or
employees of affiliates of the General Partner as part of their annual director fees for 2010. All of these units
vested in 2010 and were settled in units.
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