Halliburton 2015 Annual Report Download - page 85

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68
The following table represents our stock options activity during 2015.
Number
of Shares
(in millions)
Weighted
Average
Exercise
Price
per Share
Weighted
Average
Remaining
Contractual
Term (years)
Aggregate
Intrinsic
Value
(in millions)
Outstanding at January 1, 2015 17.4 $ 43.73
Granted 4.3 43.49
Exercised (0.8) 30.81
Forfeited/expired (0.9) 49.88
Outstanding at December 31, 2015 20.0 $ 43.90 7.1 $ 20
Exercisable at December 31, 2015 11.2 $ 39.95 5.8 $ 20
The total intrinsic value of options exercised was $9 million in 2015, $151 million in 2014, and $93 million in 2013.
As of December 31, 2015, there was $88 million of unrecognized compensation cost, net of estimated forfeitures, related to
nonvested stock options, which is expected to be recognized over a weighted average period of approximately two years.
Cash received from option exercises was $167 million during 2015, $332 million during 2014, and $277 million
during 2013.
The fair value of options at the date of grant was estimated using the Black-Scholes option pricing model. The
expected volatility of options granted was a blended rate based upon implied volatility calculated on actively traded options on
our common stock and upon the historical volatility of our common stock. The expected term of options granted was based
upon historical observation of actual time elapsed between date of grant and exercise of options for all employees. The
assumptions and resulting fair values of options granted were as follows:
Year Ended December 31
2015 2014 2013
Expected term (in years) 5.16 5.23 5.27
Expected volatility 39% 37% 40%
Expected dividend yield 1.51 - 1.85% 0.94 - 1.77% 0.94 - 1.33%
Risk-free interest rate 1.43 - 1.72% 1.57 - 1.86% 0.77 - 1.73%
Weighted average grant-date fair value per share $13.47 $19.26 $14.34
Restricted stock
Restricted shares issued under the Stock Plan are restricted as to sale or disposition. These restrictions lapse
periodically over an extended period of time not exceeding 10 years. Restrictions may also lapse for early retirement and other
conditions in accordance with our established policies. Upon termination of employment, shares on which restrictions have not
lapsed must be returned to us, resulting in restricted stock forfeitures. The fair market value of the stock on the date of grant is
amortized and charged to income on a straight-line basis over the requisite service period for the entire award.
The following table represents our restricted stock awards and restricted stock units granted, vested, and forfeited
during 2015.
Number of
Shares
(in millions)
Weighted
Average
Grant-Date Fair
Value per Share
Nonvested shares at January 1, 2015 16.1 $ 45.88
Granted 6.5 43.24
Vested (4.8) 42.86
Forfeited (1.3) 47.57
Nonvested shares at December 31, 2015 16.5 $ 45.59