Parent Company Stock Based Compensation

12 Months Ended

Dec. 31, 2014

Disclosure of Compensation Related Costs, Share-based Payments [Abstract]

Parent Stock Based Compensation

Parent Company Stock-Based Compensation

Our parent company provides certain stock-based compensation plans for employees and key executive officers. Restricted Stock Units ("RSUs") and Performance Share Units ("PSUs") granted under these plans are valued at the grant date fair value of GM common stock.

Long-Term Incentive Plan

The RSUs and PSUs granted either cliff vest or ratably vest over a three-year service period, as defined in the terms for each award. We have elected to record compensation expense for these RSUs and PSUs on a straight-line basis over the entire vesting period.

The ultimate number of PSUs earned will be determined at the end of the specified performance period, based on performance criteria determined by the Executive Compensation Committee of the GM Board of Directors at the time of award. The number of shares earned may equal, exceed or be less than the targeted number of shares depending on whether the performance criteria are met, surpassed or not met.

Salary Stock

In 2013 and 2012, a portion of each participant's salary was accrued on each salary payment date and converted to RSUs on a quarterly basis. The awards are fully vested and nonforfeitable upon grant, therefore compensation cost is recognized on the date of grant. In June 2013 the plan was amended to provide for cash or share settlement of awards based on election by the participant. The liability for these awards continues to be remeasured to fair value at the end of each reporting period.

The following table summarizes information about RSUs and PSUs granted to our employees and key executive officers under the parent company stock-based compensation programs (units in thousands):

	Year Ended December 31, 2014
	Shares		Weighted-Average Grant Date Fair Value		Weighted-Average Remaining Contractual Term (years)
Outstanding at beginning of period	1,582		$	27.34	1.1
Granted	757		$	35.97
Settled	(834	)	$	25.64
Forfeited or expired	(96	)	$	30.70
Outstanding at end of period	1,409		$	32.75	1.5
Units unvested and expected to vest at December 31, 2014	1,115		$	33.87	1.8
Units vested and payable at December 31, 2014	247		$	27.51

The following table summarizes compensation expense recorded for stock-based incentive plans (in millions):

	Years Ended December 31,
	2014		2013		2012
Compensation expense	$	19	$	21	$	17
Income tax benefit	8		8		7
Compensation expense, net of tax	$	11	$	13	$	10

At December 31, 2014 and 2013, total unrecognized compensation expense for unvested equity awards granted was $31 million and $20 million. The total fair value of RSUs and PSUs vested in 2014, 2013 and 2012 was $9 million for each year.

During 2014, 2013 and 2012, total payments for 359,000, 317,000 and 111,000 RSUs settled in cash under stock incentive plans were $13 million, $10 million and $3 million.