Management Compensation Plans

12 Months Ended

Dec. 31, 2015

Disclosure of Compensation Related Costs, Share-based Payments [Abstract]

General Plan Description

The Company issues stock-based awards under its 2009 GIP, which enables the compensation committee of the Board of Directors to award incentive and nonqualified stock options, stock appreciation rights, shares of Common Stock, restricted stock awards, restricted stock units ("RSUs") and incentive bonuses (which may be paid in cash or stock or a combination thereof), any of which may be performance-based, with vesting and other award provisions that provide effective incentive to Company employees (including officers), non-management directors and other service providers.

Total shares available for awards and total shares subject to outstanding awards are as follows:

______________________________


⁽¹⁾	No RSUs remain outstanding under the 2004 Stock Incentive Plan.

The Company realized income tax benefits from stock option exercises and RSU vestings as follows:



	Year Ended December 31,
	2015	2014	2013
	(In $ millions)
Income tax benefit realized	2	2	2
Amount reversed in current year related to prior year	—	—	—

Stock Options

The summary of changes in stock options outstanding is as follows:



	Number of Options		Weighted Average Exercise Price	Weighted Average Remaining Contractual Term	Aggregate Intrinsic Value
	(In thousands)		(In $)	(In years)	(In $ millions)
As of December 31, 2014	343		33.72	3.2	7
Granted	—		—
Exercised	(94	)	29.82
Forfeited	—		—
Expired	—		—
As of December 31, 2015	249		35.19	2.4	9
Options exercisable at end of year	239		34.74	2.3	9

The weighted average assumptions used in the Black-Scholes option pricing method for stock option grants are as follows:



	Year Ended December 31,
	2015	2014	2013
Risk-free interest rate	N/A	N/A	0.68	%
Estimated life in years	N/A	N/A	4.50
Dividend yield	N/A	N/A	0.64	%
Volatility	N/A	N/A	49.50	%

The weighted average grant date fair value of stock options granted is as follows:

The total intrinsic value of stock options exercised is as follows:



	Year Ended December 31,
	2015	2014	2013
	(In $ millions)
Intrinsic value	4	7	6

Restricted Stock Units

A summary of changes in nonvested performance-based RSUs outstanding is as follows:



	Number of Units		Weighted Average Grant Date Fair Value
	(In thousands)		(In $)
As of December 31, 2014	1,027		48.02
Granted	514		53.13
Additional performance-based RSUs granted⁽¹⁾	253		47.32
Vested	(506	)	47.32
Canceled	—		—
Forfeited	(57	)	49.12
As of December 31, 2015	1,231		50.24

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⁽¹⁾	Represents additional performance-based RSU grants in 2013 that were awarded in 2015 as a result of achieving internal profitability targets.

The fair value of shares vested for performance-based RSUs is as follows:



	Year Ended December 31,
	2015	2014	2013
	(In $ millions)
Total	27	—	10

A summary of changes in nonvested time-based RSUs outstanding is as follows:



	Employee Time-Based RSUs			Director Time-Based RSUs
	Number of Units		Weighted Average Grant Date Fair Value	Number of Units		Weighted Average Grant Date Fair Value
	(In thousands)		(In $)	(In thousands)		(In $)
As of December 31, 2014	112		45.87	19		58.48
Granted	75		63.67	14		64.94
Vested	(81	)	43.10	(19	)	58.48
Forfeited	(1	)	48.15	—		—
As of December 31, 2015	105		60.78	14		64.94

The fair value of shares vested for time-based RSUs is as follows:



	Year Ended December 31,
	2015	2014	2013
	(In $ millions)
Total	6	9	12

As of December 31, 2015, there was $22 million of unrecognized compensation cost related to RSUs, excluding actual forfeitures, which is expected to be recognized over a weighted average period of one year.

Employee Stock Purchase Plan

Beginning January 1, 2015, eligible US employees can purchase shares of the Company's Common Stock under the 2009 Employee Stock Purchase Plan approved by stockholders on April 23, 2009 ("ESPP"). As of December 31, 2015, 55,240 shares of Common Stock have been offered for purchase under the ESPP.

As of December 31, 2015

Shares
Available for
Awards

Shares
Subject to
Outstanding
Awards

2004 Stock Incentive Plan