Percentage of base salary and short-term cash incentive compensation

[Table of Contents](#i0c857804d60248b2bbe1d8282b20bbb1_7)

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|  | 2021 |  | 2020 |  | 2019 |
|  | Units |  | Weighted AverageGrant Date Fair Value |  | Units |  | Weighted AverageGrant Date Fair Value |  | Units |  | Weighted AverageGrant Date Fair Value |
| Nonvested units, January 1 | 197,463  |  |  | $47.31 |  | 206,065  |  |  | $41.50 |  | 203,188  |  |  | $37.23 |
| Granted | 73,112  |  |  | 48.66 |  | 56,204  |  |  | 59.37 |  | 91,816  |  |  | 46.10 |
| Vested | (68,307) |  |  | 38.60 |  | (63,565) |  |  | 39.12 |  | (66,322) |  |  | 33.93 |
| Forfeited | (5,839) |  |  | 50.46 |  | (1,241) |  |  | 49.25 |  | (22,617) |  |  | 44.00 |
| Nonvested units, December 31 | 196,429  |  |  | 50.74 |  | 197,463  |  |  | 47.31 |  | 206,065  |  |  | 41.50 |

  
NOTE 13(c) Deferred Compensation Plan - Alliant Energy maintains a DCP under which key employees may defer up to 100% of base salary and short-term cash incentive compensation and directors may elect to defer all or part of their retainer and committee fees. Key employees who have made the maximum allowed contribution to the Alliant Energy 401(k) Savings Plan may receive an additional credit to the DCP. Key employees and directors may elect to have their deferrals credited to a company stock account, an interest account, equity accounts or mutual fund accounts based on certain benchmark funds.  
Company Stock Account - The DCP does not permit diversification of deferrals credited to the company stock account and all distributions from participants’ company stock accounts are made in the form of shares of Alliant Energy common stock. The deferred compensation obligations for participants’ company stock accounts are recorded in “Additional paid-in capital” and the shares of Alliant Energy common stock held in a rabbi trust to satisfy this obligation are recorded in “Shares in deferred compensation trust” on Alliant Energy’s balance sheets. At December 31, the carrying value of the deferred compensation obligation for the company stock account and the shares in the deferred compensation trust based on the historical value of the shares of Alliant Energy common stock contributed to the rabbi trust, and the fair market value of the shares held in the rabbi trust, were as follows (in millions):

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| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
|  |  |  |  |  |  |  |  |  |  |  |  |
|  | 2021 |  | 2020 |
| Carrying value | $12  |  |  | $11  |  |
| Fair market value | 24  |  |  | 20  |  |

  
Interest, Equity and Mutual Fund Accounts - Distributions from participants’ interest, equity and mutual fund accounts are in the form of cash payments. The deferred compensation obligations for participants’ interest, equity and mutual fund accounts are recorded in “Pension and other benefit obligations” on the balance sheets. At December 31, 2021 and 2020, the carrying value of Alliant Energy’s deferred compensation obligations for participants’ interest, equity and mutual fund accounts, which approximates fair market value, was $22 million and $22 million, respectively.  
NOTE 14. ASSET RETIREMENT OBLIGATIONSRecognized AROs relate to legal obligations for the removal, closure or dismantlement of several assets including, but not limited to, wind farms, ash ponds, active ash landfills, coal yards, above ground storage tanks and solar generation. Recognized AROs also include legal obligations for the management and final disposition of asbestos and polychlorinated biphenyls. AROs are recorded in “Other current liabilities” and “Other liabilities” on the balance sheets. Refer to [Note 2](#i0c857804d60248b2bbe1d8282b20bbb1_250) for information regarding regulatory assets related to AROs. A reconciliation of the changes in AROs associated with long-lived assets is as follows (in millions):

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|  | Alliant Energy |  | IPL |  | WPL |
|  | 2021 |  | 2020 |  | 2021 |  | 2020 |  | 2021 |  | 2020 |
| Balance, January 1 | $251  |  |  | $196  |  |  | $177  |  |  | $134  |  |  | $74  |  |  | $62  |  |
| Revisions in estimated cash flows | 50  |  |  | 13  |  |  | 44  |  |  | 9  |  |  | 6  |  |  | 4  |  |
| Liabilities settled | (17) |  |  | (13) |  |  | (13) |  |  | (9) |  |  | (4) |  |  | (4) |  |
| Liabilities incurred | 3  |  |  | 48  |  |  | —  |  |  | 38  |  |  | 3  |  |  | 10  |  |
| Accretion expense | 7  |  |  | 7  |  |  | 5  |  |  | 5  |  |  | 2  |  |  | 2  |  |
| Balance, December 31 | $294  |  |  | $251  |  |  | $213  |  |  | $177  |  |  | $81  |  |  | $74  |  |

  
NOTE 15. DERIVATIVE INSTRUMENTSCommodity Derivatives -Purpose - Derivative instruments are used for risk management purposes to mitigate exposures to fluctuations in certain commodity prices, transmission congestion costs and rail transportation costs. Risk policies are maintained that govern the use of such derivative instruments. Derivative instruments were not designated as hedging instruments and included the following:

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