Annual report pursuant to Section 13 and 15(d)

Share-Based Compensation (Tables)

v2.4.1.9
Share-Based Compensation (Tables)
12 Months Ended
Dec. 31, 2014
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]  
Weighted Average Assumptions Use in Calculation of Fair Value for Service and Performance Conditions Awards

The following table summarizes the weighted average assumptions used in the calculation of the fair value for service condition awards for the years ended December 31, 2014, 2013, and 2012:

 

 

     SARs     Independent Director’s
SARs
 
     Year Ended December 31,     Year Ended
December 31,
 
     2014     2013     2012     2013     2012  

Expected volatility

     51.5     50.8     48.4     45.2     52.1

Dividends yield

     1.3     1.7     2.7     1.5     2.7

Expected term

     5.6 years        5.5 years        5.3 years        3.6 years        3.8 years   

Risk-free interest rate

     1.7     1.5     0.7     0.7     0.4

 

     SARs  
     Year Ended
December 31,
 
     2014     2013  

Expected volatility

     52.0     50.9

Dividends yield

     1.3     1.5

Expected term

     5.6 years        5.5 years   

Risk-free interest rate

     1.7     1.6
Summary of Activity Under Share-Based Compensation Plans

The following tables summarize the activity under all share-based compensation plans, which includes all stock awards, for the year ended December 31, 2014:

 

Stock Options & SARs

  Awards     Weighted
Average
Exercise Price
    Weighted
Average
Remaining
Contractual Term
    Aggregate
Intrinsic
Value(1)
 
    (In thousands)                 (In millions)  

Outstanding at December 31, 2013(2) (3) (4)

    12,143      $ 33.24        5.3 years      $ 552.9   

Granted

    1,642      $ 59.19       

Exercised

    (1,604   $ 14.80       

Forfeited(6)

    (1,012   $ 58.08       
 

 

 

       

Outstanding at December 31, 2014(3) (4)

    11,169      $ 37.46        5.4 years      $ 110.6   
 

 

 

       

Exercisable at December 31, 2014(3) (5)

    7,463      $ 27.37        3.8 years      $ 108.6   
 

 

 

       

 

(1) The intrinsic value is the amount by which the current market value of the underlying stock exceeds the exercise price of the stock award.

 

(2) Includes 0.9 million SARs with market and performance conditions.

 

(3) Includes 1.5 million SARs with market conditions.

 

(4) Includes 0.4 million and 1.0 million performance condition SARs as of December 31, 2013 and December 31, 2014, respectively.

 

(5) Includes 0.1 million performance condition SARs.

 

(6) Includes 0.9 million SARs with market and performance conditions which are no longer outstanding nor did they ever become exercisable due to the market condition not ultimately being met. The share-based compensation expense related to these market and performance condition SARs were not reversed as a result of the market condition not being met since the performance and service conditions were met.

 

Incentive Plan and Independent Directors Stock Units

   Shares      Weighted
Average
Grant Date
Fair Value
 
     (In thousands)         

Outstanding and nonvested at December 31, 2013

     145       $ 14.36   

Granted

     28       $ 59.98   

Vested

     (136    $ 10.95   

Forfeited

     (4    $ 38.58   
  

 

 

    

Outstanding and nonvested at December 31, 2014

     33       $ 63.67