Management Compensation Plans

12 Months Ended

Dec. 31, 2016

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, 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,
	2016	2015	2014
	(In $ millions)
Income tax benefit realized	7	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, 2015	249		35.19	2.4	9
Granted	—		—
Exercised	(195	)	33.08
Forfeited	—		—
Expired	—		—
As of December 31, 2016⁽¹⁾	54		42.77	2.0	2

______________________________


⁽¹⁾	All stock options outstanding as of December 31, 2016 were vested and exercisable.

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



	Year Ended December 31,
	2016	2015	2014
	(In $ millions)
Intrinsic value	7	4	7

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, 2015	1,231		50.24
Granted	446		56.24
Additional performance-based RSUs granted⁽¹⁾	483		48.03
Vested	(966	)	48.03
Canceled	—		—
Forfeited	(109	)	53.55
As of December 31, 2016	1,085		53.36

______________________________


⁽¹⁾	Represents additional performance-based RSU grants in 2013 and 2014 that were awarded in 2016 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,
	2016	2015	2014
	(In $ millions)
Total	64	27	—

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, 2015	105		60.78	14		64.94
Granted	291		67.82	15		69.76
Vested	(42	)	59.13	(15	)	65.03
Forfeited	(24	)	59.28	—		—
As of December 31, 2016	330		67.32	14		69.88

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



	Year Ended December 31,
	2016	2015	2014
	(In $ millions)
Total	4	6	9

As of December 31, 2016, there was $35 million of unrecognized compensation cost related to RSUs, excluding actual forfeitures, which is expected to be recognized over a weighted average period of two years.

- Definition

The entire disclosure for compensation-related costs for equity-based compensation, which may include disclosure of policies, compensation plan details, allocation of equity compensation, incentive distributions, equity-based arrangements to obtain goods and services, deferred compensation arrangements, employee stock ownership plan details and employee stock purchase plan details.

+ References + Details

As of December 31, 2016

Shares
Available for
Awards

Shares
Subject to
Outstanding
Awards

2004 Stock Incentive Plan