Halliburton 2011 Annual Report Download - page 124

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109
The weighted average grant-date fair value of shares granted during 2010 was $29.39 and during
2009 was $22.90. The total fair value of shares vested during 2011 was $165 million, during 2010 was
$100 million, and during 2009 was $59 million. As of December 31, 2011, there was $352 million of
unrecognized compensation cost, net of estimated forfeitures, related to nonvested restricted stock, which is
expected to be recognized over a weighted average period of 4 years.
Employee Stock Purchase Plan
Under the ESPP, eligible employees may have up to 10% of their earnings withheld, subject to
some limitations, to be used to purchase shares of our common stock. Unless the Board of Directors shall
determine otherwise, each six-month offering period commences on January 1 and July 1 of each year. The
price at which common stock may be purchased under the ESPP is equal to 85% of the lower of the fair
market value of the common stock on the commencement date or last trading day of each offering period.
Under this plan, 44 million shares of common stock have been reserved for issuance. They may be
authorized but unissued shares or treasury shares. As of December 31, 2011, 25.3 million shares have been
sold through the ESPP.
The fair value of ESPP shares was estimated using the Black-Scholes option pricing model. The
expected volatility was a one-year historical volatility of our common stock. The assumptions and resulting
fair values were as follows:
Offering period July 1 through December 31
2011 2010 2009
Expected term (in years) 0.5 0.5 0.5
Expected volatility 34% 43% 80%
Expected dividend yield 0.70% 1.44% 1.74%
Risk-free interest rate 0.10% 0.21% 0.33%
Weighted average grant-date fair value per share $ 12.57 $ 6.72 $ 7.66
Offering period January 1 through June 30
2011 2010 2009
Expected term (in years) 0.5 0.5 0.5
Expected volatility 43% 48% 71%
Expected dividend yield 0.88% 1.15% 1.85%
Risk-free interest rate 0.20% 0.19% 0.27%
Weighted average grant-date fair value per share $ 10.99 $ 8.81 $ 6.69