Enterprise Products Partners L.P.

SEC Filings

10-K
ENTERPRISE PRODUCTS PARTNERS L P filed this Form 10-K on 02/28/2018
Entire Document
 


Grants of Equity-Based Awards in Fiscal Year 2017

The following table presents information concerning each grant of an equity-based award in 2017 to a named executive officer for which we will be allocated our pro rata share of the related cost under the ASA.

                       
Grant
 
                       
Date Fair
 
           
Value of
 
 
    
Estimated Future Payouts Under
   
Equity-
 
 
  
 
Equity Incentive Plan Awards
   
Based
 
 
Grant  
Threshold
   
Target
   
Maximum
   
Awards
 
Award Type/Named Executive Officer
Date
 
(#)
 
 
(#)
 
 
(#)
 
 
($) (1)
 
Phantom unit awards: (2)
                               
   A. James Teague
02/16/17
   
--
     
140,000
     
--
   
$
4,041,800
 
   W. Randall Fowler
02/16/17
   
--
     
112,000
     
--
     
2,425,080
 
   Bryan F. Bulawa
02/16/17
   
--
     
37,600
     
--
     
922,685
 
   William Ordemann
02/16/17
   
--
     
58,000
     
--
     
1,674,460
 
   Graham W. Bacon
02/16/17
   
--
     
58,000
     
--
     
1,674,460
 
   Brent B. Secrest
02/16/17
   
--
     
40,000
     
--
     
1,154,800
 
                                   
(1)   Amounts presented reflect that portion of grant date fair value allocable to us based on the estimated percentage of time each named executive officer spent on our consolidated business activities during 2017. Based on current allocations, we estimate that the consolidated compensation expense we record for each named executive officer with respect to these awards will equal these amounts over time.
(2)   The grant date fair value presented for the phantom unit awards is based, in part, on the closing price of our common units on February 16, 2017 of $28.87 per unit. For information about assumptions utilized in the valuation of these awards, see Note 13 of the Notes to Consolidated Financial Statements included under Part II, Item 8 of this annual report, the applicable disclosures of which are incorporated by reference into this Item 11.
 

Phantom unit awards
The phantom unit awards were granted under the 2008 Enterprise Products Long-Term Incentive Plan (Third Amendment and Restatement) (the “2008 Plan”). Phantom unit awards allow recipients to acquire our common units (at no cost to the recipient apart from fulfilling service and other conditions) once a defined vesting period expires, subject to customary forfeiture provisions.  Phantom unit awards generally vest at a rate of 25% per year beginning one year after the grant date and are non-vested until the required service periods expire. At December 31, 2017, substantially all of our phantom unit awards are expected to result in the issuance of common units upon vesting; therefore, the applicable awards are accounted for as equity-classified awards.

Each phantom unit award includes a tandem DER, which entitles the holder to nonforfeitable cash payments equal to the product of the number of phantom unit awards outstanding for the participant and the cash distribution per common unit paid to our common unitholders.

Summary of Long-Term Incentive Arrangements Underlying 2017 Award Grants

The 2008 Plan provides for incentive awards to EPCO’s key employees and non-employee directors and consultants who perform management, administrative or operational functions for us or our affiliates. Awards granted under the 2008 Plan may be in the form of phantom units, DERs, restricted common units, unit options, unit appreciation rights and other unit-based awards or substitute awards.  For information regarding the number of our common units authorized for issuance under the 2008 Plan, see “Securities Authorized for Issuance Under Equity Compensation Plans” under Item 13 of this annual report.





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