Table of Contents Index to Financial Statements Equity-Classified Restricted Stock Units Equity-Classified Performance Units 119 The Company also recorded a deferred tax asset of less than $1 million related to equity-classified performance units for the year ended December 31, 2020, compared to deferred tax assets of less than $1 million and $1 million in 2019 and 2018, respectively. As of December 31, 2020, there are no more equity-classified performance units outstanding. The Company recorded compensation costs related to equity-classified performance units for the years ended December 31, 2020, 2019 and 2018. The performance units awarded in 2017 included a market condition based on relative Total Shareholder Return (“TSR”). The grant date fair value is calculated using the closing price of the Company’s common stock at the grant date and a Monte Carlo model to estimate the TSR market condition. The estimated fair value is amortized to compensation expense on a straight-line basis over the vesting period of the award. There were no equity-classified performance units awarded in 2020, 2019 or 2018. The following table summarizes equity-classified restricted stock unit activity to be paid out in Company stock for the year ended December 31, 2020. As a result of the Merger with Montage, certain Montage employees became employees of Southwestern and retained their original equity awards. The amount of compensation costs related these equity-classified restricted stock units recorded by the Company was immaterial for the year ended December 31, 2020. As of December 31, 2020, there was less than $1 million of total unrecognized compensation cost related to unvested equity-classified restricted stock units that is expected to be recognized over a weighted-average period of approximately one year. The fair values of the grants were $2 million for 2020, $2 million for 2019 and $2 million for 2018. The total fair value of shares vested were $6 million for 2020, $11 million for 2019 and $19 million for 2018. 2019 and 2018, respectively. As of December 31, 2020, there was $1 million of total unrecognized compensation cost related to unvested shares of restricted stock that is expected to be recognized over a weighted-average period of less than one year. The following table summarizes the restricted stock activity for the years 2020, 2019 and 2018, and provides information for restricted stock outstanding at December 31 of each year: (3) Includes 1,287,636 shares forfeited as a result of the reduction in workforce for the year ended December 31, 2018. (2) Includes 65,196 shares forfeited as a result of the reduction in workforce for the year ended December 31, 2019. (1) Includes 171,813 shares forfeited as a result of the reduction in workforce for the year end December 31, 2020. 2020 2019 2018 Number of Shares Weighted Average Fair Value Number of Shares Weighted Average Fair Value Number of Shares Weighted Average Fair Value (in thousands) (in thousands) (in thousands) Unvested shares at January 1 1,480  $ 7.00  2,717  $ 7.91  6,254  $ 8.85  Granted 584  $ 2.86  493  $ 3.06  350  $ 4.72  Vested (1,098) $ 5.26  (1,516) $ 7.16  (2,058) $ 9.24  Forfeited (269) $ 7.79  (214) $ 8.38  (1,829) $ 9.01  Unvested shares at December 31 697  $ 5.97  1,480  $ 7.00  2,717  $ 7.91  (1) (2) (3) Number of Units Weighted Average Fair Value (in thousands) Unvested Units at January 1, 2020 —  $ —  Granted 186  $ 3.05  Vested (42) $ 3.05  Forfeited (10) $ 3.05  Unvested Units at December 31, 2020 134 $ 3.05 (in millions) 2020 2019 2018 Performance units – general and administrative expense $ —  $ 1  $ 3  Performance units – general and administrative expense capitalized $ —  $ —  $ 1 