6 5 - RR DONNELLEY FINANCIAL - External Home Login

CHESAPEAKE ENERGY CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF EQUITY
Years Ended December 31,
2010 2009 2008
($ in millions, except per share data)
PREFERRED STOCK:
Balance, beginning of period ................................. $ 466 $ 505 $ 960
Issuance of 1,500,000, 0 and 0 shares of 5.75% preferred stock ....
Issuance of 1,100,000, 0 and 0 shares of 5.75% preferred stock
1,500 — —
(series A) ...............................................
Conversion or exchange of 5,000, 146,801 and 4,545,414 shares of
1,100 — —
preferred stock for common stock ........................... (1) (39) (455)
Balance, end of period ...................................... 3,065 466 505
COMMON STOCK:
Balance, beginning of period ................................. 6 6 5
Conversion or exchange of convertible notes and preferred stock for
319,274, 11,632,594 and 36,586,347 shares of common stock . . . — — —
Issuance of 0, 0, and 51,750,000 shares of common stock ........ — — 1
Issuance of 0, 24,822,832 and 1,677,000 shares of common stock
for the purchase of proved and unproved properties ............ — — —
Stock-based compensation .................................. 1 — —
Balance, end of period ...................................... 7 6 6
PAID-IN CAPITAL:
Balance, beginning of period ................................. 12,146 11,680 7,532
Issuance of 0, 0, and 51,750,000 shares of common stock ........ — — 2,697
Issuance of 0, 24,822,832 and 1,677,000 shares of common stock
for the purchase of proved and unproved properties ............ — 421 34
Issuance of 2.25% contingent convertible senior notes due 2038 . . . — — 345
Conversion or exchange of convertible notes and preferred stock for
319,274, 11,632,594 and 36,586,347 shares of common stock . . . 9 301 934
Stock-based compensation .................................. 226 199 188
Offering/transaction expenses ................................ (38) (16) (101)
Dividends on common stock ................................. (95) (185) —
Dividends on preferred stock ................................. (44) (22) —
Exercise of stock options .................................... 3 4 8
Allocation of joint venture capital to Global Infrastructure Partners . . — (294) —
Tax effect on equalization of partners’ capital ................... — 106 —
Tax benefit (reduction in tax benefit) from exercise of stock-based
compensation ........................................... (13) (48) 43
Balance, end of period ...................................... 12,194 12,146 11,680
The accompanying notes are an integral part of these consolidated financial statements.
75