Share-Based Compensation (Tables)

12 Months Ended

Dec. 31, 2014

Stock options

Share-based compensation disclosures

Stock option transactions under various stock-based employee compensation plans

Options	Shares			Weighted- Average Exercise Price		Weighted- Average Remaining Contractual Term	Aggregate Intrinsic Value
	(In thousands, except exercise price)
Options outstanding as of December 31, 2013		18,386		$	21.10
Granted		61			17.93
Exercised		(3,036	)		9.97
Surrendered		—			—
Forfeited		(4,107	)		23.16
Options outstanding as of December 31, 2014		11,304		$	23.30	2.81 years	$	12,976
Options exercisable as of December 31, 2014		10,955		$	23.37	2.67 years	$	12,948

Schedule of grant date fair value

	Year Ended December 31,
	2014			2013			2012
Weighted average fair value of options granted	$	6.76		$	6.05		$	9.40
Weighted average risk free interest rate		1.37	%		0.79	%		0.63	%
Dividend yield		1.21	%		0.84	%		0	%
Volatility(1)		51.01	%		51.01	%		55.74	%
Expected life		4.0 years			4.0 years			4.0 years

(1) Expected volatilities are based on implied volatilities from publicly traded options to purchase Nabors' common shares, historical volatility of Nabors' common shares and other factors.

Unvested stock options

Unvested Stock Options	Outstanding			Weighted-Average Grant-Date Fair Value
	(In thousands, except fair value)
Unvested as of December 31, 2013		549		$	8.88
Granted		61			5.61
Vested		(248	)		8.02
Forfeited		(13	)		4.83
Unvested as of December 31, 2014		349		$	9.08

Restricted Stock

Share-based compensation disclosures

Unvested restricted stock

Restricted stock	Outstanding			Weighted-Average Grant-Date Fair Value
	(In thousands, except fair value)
Unvested as of December 31, 2013		3,764		$	18.26
Granted		1,169			22.80
Vested		(1,270	)		19.45
Forfeited		(181	)		20.23
Unvested as of December 31, 2014		3,482		$	19.25

Restricted Stock Based on Market Conditions

Share-based compensation disclosures

Schedule of grant date fair value

	Year ended December 31,
	2014			2013
Risk free interest rate		0.80	%		0.41	%
Expected volatility		40.00	%		46.00	%
Closing stock price at grant date	$	18.19		$	16.53
Expected term (in years)		2.97			2.82

Unvested restricted stock

Market based restricted stock	Outstanding		Weighted-Average Grant-Date Fair Value
	(In thousands, except fair value)
Outstanding as of December 31, 2013		354	$	10.42
Granted		395		11.40
Vested		—		—
Forfeited		—		—
Outstanding as of December 31, 2014		749	$	10.94