Nucor 2015 Annual Report Download - page 68

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The shares reserved for future grants as of December 31, 2015, 2014 and 2013 are reflected in the restricted stock units table
below. The total intrinsic value of options (the amount by which the stock price exceeded the exercise price of the option on the
date of exercise) that were exercised during 2015 was $0.1 million ($2.0 million in 2014 and none in 2013).
The following table summarizes information about stock options outstanding at December 31, 2015:
(shares in thousands)
Options Outstanding
Exercise Price
Options
Outstanding
Options
Exercisable
Weighted-Average Remaining
Contractual Life
$35.76 689 689 6.4 years
$41.43 242 242 4.4 years
$42.34 520 520 5.4 years
$44.51 506 80 7.4 years
$47.59 700 — 9.4 years
$50.63 435 — 8.4 years
$35.76 – $50.63 3,092 1,531 7.2 years
As of December 31, 2015, the total aggregate intrinsic value of both options outstanding and options exercisable was $3.1 million.
Options for which the exercise price exceeded the closing market price of a share of the Company’s common stock at December 31,
2015 were excluded from the calculation of aggregate intrinsic value.
The grant date fair value of options granted was $11.71 per share in 2015 ($17.48 per share in 2014 and $15.03 per share in 2013).
The fair value was estimated using the Black-Scholes option-pricing model with the following assumptions:
2015 2014 2013
Exercise price $47.59 $50.63 $44.51
Expected dividend yield 3.13% 2.92% 3.30%
Expected stock price volatility 33.32% 45.00% 46.94%
Risk-free interest rate 1.86% 2.03% 1.51%
Expected life (in years) 6.5 6.5 6.5
Stock options granted to employees who are eligible for retirement on the date of grant are expensed immediately since these awards
vest upon retirement from the Company. Retirement, for purposes of vesting in these stock options, means termination of employment
after satisfying age and years of service requirements. Similarly, stock options granted to employees who will become retirement-
eligible prior to the end of the vesting term are expensed over the period through which the employee will become retirement-eligible.
Compensation expense for stock options granted to employees who are not retirement-eligible is recognized on a straight-line basis
over the vesting period. Compensation expense for stock options was $7.4 million in 2015 ($7.7 million in 2014 and $8.6 million in
2013). As of December 31, 2015, unrecognized compensation expense related to stock options was $1.3 million, which is expected
to be recognized over 2.2 years.
Restricted Stock Units Nucor annually grants restricted stock units (RSUs) to key employees, officers and non-employee directors.
The RSUs typically vest and are converted to common stock in three equal installments on each of the first three anniversaries of
the grant date. A portion of the RSUs awarded to an officer vest upon the officer’s retirement. Retirement, for purposes of vesting in
these units only, means termination of employment with approval of the Compensation and Executive Development Committee of the
Board of Directors after satisfying age and years of service requirements. RSUs granted to non-employee directors are fully vested
on the grant date and are payable to the non-employee director in the form of common stock after the termination of the director’s
service on the Board of Directors.