Share-Based Compensation

3 Months Ended

Mar. 31, 2014

Share-Based Compensation

Share-Based Compensation

Note 5 Share-Based Compensation

We have several share-based employee and director compensation plans, which are more fully described in Note 9 — Share-Based Compensation in our 2013 Annual Report. Total share-based compensation expense, which includes stock options and restricted stock, totaled $10.7 million and $32.9 million for the three months ended March 31, 2014 and 2013, respectively. Share-based compensation expense has been allocated to our various operating segments.  See Note 13 — Segment Information.

Stock Options

The total intrinsic value of stock options exercised during the three months ended March 31, 2014 and 2013 was $6.0 million and $0.7 million, respectively.  The total fair value of stock options that vested during the three months ended March 31, 2014 and 2013 was $1.5 million and $3.8 million, respectively.

Restricted Stock

During the three months ended March 31, 2014 and 2013, we awarded 1,106,919 and 4,061,027 shares of restricted stock, respectively, vesting over periods of up to four years, to our employees and directors.  These awards had an aggregate value at their date of grant of $25.2 million and $66.8 million, respectively.  The fair value of restricted stock that vested during the three months ended March 31, 2014 and 2013 was $22.4 million and $35.5 million, respectively.

Restricted Stock Based on Performance

During the three months ended March 31, 2014, we awarded 362,311 shares of restricted stock, vesting over a period of three years to some of our executives.  The performance awards granted were based upon achievement of specific financial or operational objectives. The number of shares granted was determined by the number of performance goals achieved during the period January 1, 2013 through December 31, 2013.

Our performance awards based on performance conditions are liability-classified awards until shares are granted, of which our accrued liabilities included $0.4 million at March 31, 2014 for the performance period beginning January 1, 2014 through December 31, 2014. The fair value of these awards are estimated at each reporting period, based on internal metrics and marked to market.

Restricted Stock Based on Market Conditions

During the three months ended March 31, 2014 and 2013, we awarded 395,550 and 353,933 shares of restricted stock, respectively, which will vest based on our performance compared to our peer group over a three-year period. These awards had an aggregate value at their date of grant of $4.5 million and $3.7 million, respectively, after consideration of all assumptions. The grant date fair value of these awards was based on a Monte Carlo model, using the following assumptions during the three months ended March 31, 2014 and 2013:

	2014			2013
Risk free interest rate	0.80		%	0.41		%
Expected volatility	40.00		%	46.00		%
Closing stock price	$	18.19		$	16.53
Expected term (in years)	2.97 years			2.82 years