Common Stock The following table summarizes NRG's common stock reserved for the maximum number of shares potentially issuable based on the conversion and redemption features of outstanding equity instruments and the long-term incentive plans as of December 31, 2014:
## Table 0 ##
Common stock dividends — NRG paid its first quarterly dividend on the Company's common stock of $0.09 per share, or $0.36 per share on an annualized basis, on August 15, 2012.
In 2014 and 2013, the Company increased its annual common stock dividend by 17% to $0.56 per share and 33% to $0.48 per share, respectively.
The following table lists the dividends paid per common share during 2014, 2013 and 2012:
## Table 1 ##
On February 17, 2015, NRG paid a quarterly dividend on the Company's common stock of $0.145 per share, or $0.58 per share on an annualized basis, an increase of 4% from $0.56 per share.
Employee Stock Purchase Plan — Under the ESPP, eligible employees may elect to withhold up to 10% of their eligible compensation to purchase shares of NRG common stock at the lesser of 85% of its fair market value on the offering date or 85% of the fair market value on the exercise date.
An offering date occurs each Jan 1 and July1.
An exercise date occurs each June 30 and December 31.
As of December 31, 2014, there remained 1,560,052 shares of treasury stock reserved for issuance under the ESPP, and in the first quarter of 2015, 124,624 shares of common stock were issued to employee accounts from treasury stock.2015 Capital Allocation Program — In December 2014, the Company was authorized to repurchase $100 million of its common stock under the 2015 Capital Allocation Program.
The purchase of common stock was made using cash on hand.
As of December 31, 2014, the Company had purchased 1,624,360 shares of NRG common stock for approximately $44 million at an average cost of $26.95 per share.
In the first quarter of 2015, the Company purchased an additional 2,224,830 shares of NRG common stock for approximately $56 million at an average cost of $25.25 per share.
Preferred Stock 2.822% Redeemable Preferred Stock On December 23, 2014, NRG and the Credit Suisse Group amended and restated its 250,000 shares of 3.625% Convertible Perpetual Preferred Stock, or 3.625% Preferred Stock, which is treated as redeemable preferred stock, initially issued on August 11, 2005 to the Credit Suisse Group in a private placement.
The amendment resulted in a reduction of the rate from 3.625% to 2.822% and is hereby referred to as the 2.822% Preferred Stock.
The transaction was accounted for as an extinguishment of the 3.625% Preferred Stock and the issuance of new 2.822% Preferred Stock.
The loss on extinguishment of the 3.625% Preferred Stock of $42 million represents the increase in redeemable preferred stock as the Company recorded the 2.822% Preferred Stock at a fair value of $291 million in connection with the amendment.
The loss on extinguishment of $42 million as well as $5 million in consent fees paid to Credit Suisse, are recorded as a dividend on the preferred shares.
This amount reduces net income to arrive at net income/(loss) available to NRG common stockholders in the calculation of earnings per share.
The 2.822% Preferred Stock amount is located after the liabilities but before the stockholders' equity section on the balance sheet, due to the fact that the preferred shares can be redeemed in cash by the stockholder.
The 2.822% Preferred Stock has a liquidation preference of $1,378 per share.
Holders of the 2.822% Preferred Stock are entitled to receive, out of legally available funds, cash dividends at the rate of 2.822% per annum, or $28.22 per share per year, payable in cash quarterly in arrears commencing on December 30, 2014.
The following table summarizes NRG's global generation portfolio as of December 31, 2015:
## Table 2 ##
(a) Includes 90 active fossil fuel and nuclear plants, 16 Utility Scale Solar facilities, 36 wind farms and multiple Distributed Solar facilities.
All Utility Scale Solar and Distributed Solar facilities are described in MW on an alternating current basis.
MW figures provided represent nominal summer net MW capacity of power generated as adjusted for the Company's owned or leased interest excluding capacity from inactive/mothballed units.
(b) Includes the aggregate production capacity of installed and activated residential solar energy systems.
Also includes capacity from operating portfolios of residential solar assets held by RPV Holdco, a partnership between NRG Home Solar and NRG Yield, Inc.  (c) Includes Distributed Solar capacity from assets held by DGPV Holdco, a partnership between NRG Renew and NRG Yield, Inc.  (d) Does not include NRG Yield, Inc. 's thermal converted (MWt) capacity, which is part of the NRG Yield operating segment.
(e) Natural gas generation portfolio does not include: 463 MW related to Osceola, which was mothballed on January 1, 2015; 636 MW related to Coolwater, which was retired on January 1, 2015; 16 MW related to SD Jets Kearny 1, which was deactivated in March 2015; 160 MW related to Glen Gardner, which was retired on May 1, 2015; 98 MW related to Gilbert, which was retired on May 1, 2015; 335 MW related to El Segundo 4, which was deactivated on December 31, 2015; and 60 MW related to SD Jets Kearny 2A-2D, which were deactivated on December 31, 2015.
(f) Coal generation portfolio does not include: 251 MW related to Will County Unit 3, which was retired on April 15, 2015; 597 MW related to Shawville, which was mothballed on May 31, 2015; 575 MW related to Big Cajun Unit 2, which was converted to natural gas in July 2015; 401 MW related to Portland, which was deactivated on December 1, 2015; and 75 MW related to Dunkirk 2, which was mothballed on December 31, 2015.
(g) Oil generation portfolio does not include 212 MW related to Werner, which was retired on May 1, 2015.
NRG's portfolio diversification and commercial operations hedging strategy provides the Company with reliable future cash flows.
NRG has hedged a portion of its coal and nuclear capacity with decreasing hedge levels through 2020.
The majority of the Company's generation is in markets with forward capacity markets that extend three years into the future.
These capacity revenues not only enhance the reliability of future cash flows but are not correlated to natural gas prices.
NRG also has cooperative load contract obligations in the Gulf Coast region expiring at various dates through 2025, which largely hedges a portion of the Company's generation in this region.
In addition, as of December 31, 2015, the Company had purchased fuel forward under fixed price contracts, with contractually-specified price escalators, for approximately 38% of its expected coal requirement from 2016 to 2020, excluding inventory.
The Company enters into additional hedges when it deems market conditions to be favorable.
The Company also has the advantage of being able to supply its retail businesses with its own generation, which can reduce the need to sell and buy power from other institutions and intermediaries, resulting in lower transaction costs and credit exposures.
This combination of generation and retail allows for a reduction in actual and contingent collateral, through offsetting transactions and by reducing the need to hedge the retail power supply through third parties.
The generation and retail combination also provides stability in cash flows, as changes in commodity prices generally have offsetting impacts between the two businesses.
The offsetting nature of generation and retail, in relation to changes in market prices, is an integral part of NRG's goal of providing a reliable source of future cash flow for the Company.
When developing new renewable and conventional power generation facilities, NRG typically secures long-term PPAs, which insulate the Company from commodity market volatility and provide future cash flow stability.
These PPAs are typically contracted with high credit quality local utilities and have durations from 10 years to as much as 25 years.
fund.
Employees have the ability to transfer funds from the Company stock fund as they choose.
The Company declared matching contributions to the Vertex 401(k) Plan as follows (in thousands):
## Table 3 ##
Q.
Related Party Transactions As of December 31, 2005 and 2004, the Company had an interest-free loan outstanding to an officer in the amount of $36,000 and $97,000, respectively, which was initially advanced in April 2002.
The loan balance is included in other assets on the consolidated balance sheets.
In 2001, the Company entered into a four year consulting agreement with a director of the Company for the provision of part-time consulting services over a period of four years, at the rate of $80,000 per year commencing in January 2002 and terminating in January 2006.
R.  Contingencies The Company has certain contingent liabilities that arise in the ordinary course of its business activities.
The Company accrues contingent liabilities when it is probable that future expenditures will be made and such expenditures can be reasonably estimated.
On December 17, 2003, a purported class action, Marguerite Sacchetti v.  James C.  Blair et al.
, was filed in the Superior Court of the State of California, County of San Diego, naming as defendants all of the directors of Aurora who approved the merger of Aurora and Vertex, which closed in July 2001.
The plaintiffs claim that Aurora's directors breached their fiduciary duty to Aurora by, among other things, negligently conducting a due diligence examination of Vertex by failing to discover alleged problems with VX-745, a Vertex drug candidate that was the subject of a development program which was terminated by Vertex in September 2001.
Vertex has certain indemnity obligations to Aurora's directors under the terms of the merger agreement between Vertex and Aurora, which could result in Vertex liability for attorney's fees and costs in connection with this action, as well as for any ultimate judgment that might be awarded.
There is an outstanding directors' and officers' liability policy which may cover a significant portion of any such liability.
The defendants are vigorously defending this suit.
The Company believes this suit will be settled without any significant liability to Vertex or the former Aurora directors.
S.  Guarantees As permitted under Massachusetts law, Vertex's Articles of Organization and Bylaws provide that the Company will indemnify certain of its officers and directors for certain claims asserted against them in connection with their service as an officer or director.
The maximum potential amount of future payments that the Company could be required to make under these indemnification provisions is unlimited.
However, the Company has purchased certain directors' and officers' liability insurance policies that reduce its monetary exposure and enable it to recover a portion of any future amounts paid.
The Company believes the estimated fair value of these indemnification arrangements is minimal.

<table><tr><td>Equity Instrument</td><td>Common StockReserve Balance</td></tr><tr><td>2.822% Convertible perpetual preferred</td><td>16,000,000</td></tr><tr><td>Long-term incentive plans</td><td>19,413,743</td></tr><tr><td>Total</td><td>35,413,743</td></tr></table>
<table><tr><td></td><td>Fourth Quarter</td><td>Third Quarter</td><td>Second Quarter</td><td>First Quarter</td></tr><tr><td>2014</td><td>$0.14</td><td>$0.14</td><td>$0.14</td><td>$0.12</td></tr><tr><td>2013</td><td>$0.12</td><td>$0.12</td><td>$0.12</td><td>$0.09</td></tr><tr><td>2012</td><td>$0.09</td><td>$0.09</td><td>$—</td><td>$—</td></tr></table>
<table><tr><td></td><td colspan="9">Global Generation Portfolio<sup>(a)</sup> (In MW)</td></tr><tr><td></td><td colspan="3">NRG Business</td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>Generation Type</td><td>Gulf Coast</td><td>East</td><td>West</td><td>NRG Home Solar<sup>(b)</sup></td><td>NRG Renew<sup>(c)</sup></td><td>NRG Yield<sup>(d)</sup></td><td>Total Domestic</td><td>Other (Inter-national)</td><td>Total Global</td></tr><tr><td>Natural gas<sup>(e)</sup></td><td>8,651</td><td>7,876</td><td>6,085</td><td>—</td><td>—</td><td>1,879</td><td>24,491</td><td>144</td><td>24,635</td></tr><tr><td>Coal<sup>(f)</sup></td><td>5,114</td><td>10,122</td><td>—</td><td>—</td><td>—</td><td>—</td><td>15,236</td><td>605</td><td>15,841</td></tr><tr><td>Oil<sup>(g)</sup></td><td>—</td><td>5,581</td><td>—</td><td>—</td><td>—</td><td>190</td><td>5,771</td><td>—</td><td>5,771</td></tr><tr><td>Nuclear</td><td>1,176</td><td>—</td><td>—</td><td>—</td><td>—</td><td>—</td><td>1,176</td><td>—</td><td>1,176</td></tr><tr><td>Wind</td><td>—</td><td>—</td><td>—</td><td>—</td><td>1,061</td><td>2,005</td><td>3,066</td><td>—</td><td>3,066</td></tr><tr><td>Utility Scale Solar</td><td>—</td><td>—</td><td>—</td><td>—</td><td>845</td><td>482</td><td>1,327</td><td>—</td><td>1,327</td></tr><tr><td>Distributed Solar</td><td>—</td><td>—</td><td>—</td><td>93</td><td>60</td><td>9</td><td>162</td><td>—</td><td>162</td></tr><tr><td>Total generation capacity</td><td>14,941</td><td>23,579</td><td>6,085</td><td>93</td><td>1,966</td><td>4,565</td><td>51,229</td><td>749</td><td>51,978</td></tr><tr><td>Capacity attributable to noncontrolling interest</td><td>—</td><td>—</td><td>—</td><td>—</td><td>-638</td><td>-2,053</td><td>-2,691</td><td>—</td><td>-2,691</td></tr><tr><td>Total net generation capacity</td><td>14,941</td><td>23,579</td><td>6,085</td><td>93</td><td>1,328</td><td>2,512</td><td>48,538</td><td>749</td><td>49,287</td></tr></table>
<table><tr><td></td><td>2005</td><td>2004</td><td>2003</td></tr><tr><td>Discretionary matching contributions for the year ended December 31,</td><td>$2,894</td><td>$2,492</td><td>$2,237</td></tr><tr><td>Shares issued for the year ended December 31,</td><td>215</td><td>239</td><td>185</td></tr><tr><td>Shares issuable as of the year ended December 31,</td><td>19</td><td>57</td><td>61</td></tr></table>

Question: Does the proportion of Natural gas in total larger than that of Coal for Gulf Coast ?
Answer: yes