Share-Based Compensation (Tables)

12 Months Ended

Dec. 31, 2015

Key Officer Director and Managerial Employee 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, 2014	11,304		$	23.30
Granted	158		12.34
Exercised	(140	)	9.24
Surrendered	—		—
Forfeited	(6,024	)	32.86
Options outstanding as of December 31, 2015	5,298		$	12.48	4.18 years	$	—
Options exercisable as of December 31, 2015	5,069		$	12.15	4.05 years	$	—

Schedule of grant date fair value

	Year Ended December 31,
	2015		2014		2013
Weighted average fair value of options granted	$	4.40	$	6.76	$	6.05
Weighted average risk free interest rate	1.29%		1.37%		0.79%
Dividend yield	2.05%		1.21%		0.84%
Volatility (1)	51.01%		51.01%		51.01%
Expected life (in years)	4.0		4.0		4.0

(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, 2014	349		$	9.08
Granted	158		4.40
Vested	(262	)	7.26
Forfeited	(16	)	5.59
Unvested as of December 31, 2015	229		$	8.16

Restricted Stock Award

Share-based compensation disclosures

Unvested restricted stock

Restricted shares	Outstanding		Weighted-Average Grant-Date Fair Value
	(In thousands, except fair value)
Unvested as of December 31, 2014	3,482		$	19.25
Granted	2,547		10.24
Vested	(1,477	)	19.24
Forfeited	(750	)	17.02
Unvested as of December 31, 2015	3,802		$	15.96

Restricted Stock Based on Market Conditions

Share-based compensation disclosures

Schedule of grant date fair value

	Year Ended December 31,
	2015		2014		2013
Risk free interest rate	1.18%		0.80%		0.41%
Expected volatility	50.00%		40.00%		46.00%
Closing stock price at grant date	$	12.98	$	18.19	$	16.53
Expected term (in years)	3.00		2.97		2.82

Unvested restricted stock

Market based restricted shares	Outstanding	Weighted-Average Grant-Date Fair Value
	(In thousands, except fair value)
Outstanding as of December 31, 2014	749	$	10.94
Granted	545	8.67
Vested	—	—
Forfeited	—	—
Outstanding as of December 31, 2015	1,294	$	9.77