Stock-Based Compensation

3 Months Ended

Mar. 31, 2015

Share-based Compensation [Abstract]

Stock-based Compensation

STOCK-BASED COMPENSATION

The following table summarizes the components of stock-based compensation for DTE Energy:

	Three Months Ended March 31,
	2015		2014
	(In millions)
Stock-based compensation expense	$	6	$	33
Tax benefit	$	2	$	13
Stock-based compensation cost capitalized in property, plant and equipment	$	1	$	5

Stock Options

The following table summarizes DTE Energy's stock option activity for the three months ended March 31, 2015:

	Number of Options		Weighted Average Exercise Price		Aggregate Intrinsic Value (In millions)
Options outstanding at January 1, 2015	444,278		$	43.56
Exercised	(150,317	)	$	45.37
Forfeited or expired	(3,979	)	$	44.72
Options outstanding and exercisable at March 31, 2015	289,982		$	42.61	$	12

As of March 31, 2015, the weighted average remaining contractual life for the exercisable shares is 3.32 years. As of March 31, 2015, all options were vested.

The intrinsic value of options exercised for the three months ended March 31, 2015 and 2014 was $6 million and $5 million, respectively. No option expense was recognized for the three months ended March 31, 2015 and 2014, respectively.

Restricted Stock Awards

The following table summarizes DTE Energy’s restricted stock awards activity for the three months ended March 31, 2015:

	Restricted Stock		Weighted Average Grant Date Fair Value
Balance at January 1, 2015	416,318		$	62.82
Grants	105,500		$	84.06
Forfeitures	(260	)	$	67.23
Vested and issued	(141,260	)	$	53.40
Balance at March 31, 2015	380,298		$	72.20

Performance Share Awards

Performance shares awarded under the plan are for a specified number of shares of DTE Energy common stock that entitle the holder to receive a cash payment, shares of DTE Energy common stock or a combination thereof. The final value of the award is determined by the achievement of certain performance objectives and market conditions. The awards vest at the end of a specified period, usually three years. Awards granted in 2014 and 2015 were primarily deemed to be equity awards. The DTE Energy stock price and number of probable shares attributable to market conditions for such equity awards are fair valued only at the grant date. Performance shares awarded prior to 2014 are liability awards and are remeasured to fair value at each reporting period.

The following table summarizes DTE Energy’s performance share activity for the three months ended March 31, 2015:

	Performance Shares		Weighted Average Grant Date Fair Value
Balance at January 1, 2015	1,554,697		$	69.32
Grants	429,151		$	84.04
Forfeitures	(5,021	)	$	69.16
Payouts	(532,700	)	$	—
Balance at March 31, 2015	1,446,127		$	75.76

Unrecognized Compensation Costs

As of March 31, 2015, DTE Energy had $81 million of total unrecognized compensation cost related to non-vested stock incentive plan arrangements. That cost is expected to be recognized over a weighted-average period of 1.72 years.

Allocated Stock-Based Compensation

DTE Electric received an allocation of costs from DTE Energy associated with stock-based compensation of $4 million and $19 million for the three months ended March 31, 2015 and 2014, respectively.