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Stock-based Compensation and Outstanding Awards (Tables)
 12 Months Ended
Dec. 31, 2016
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]  
Significant Assumptions Used to Calculate the Grant Date Fair Market Values of Options Granted

For the stock options granted in 2014, the fair value of each option award was estimated on the date of grant using the Black-Scholes framework that uses the assumptions noted in the table below.

 

 

 

Year Ended December 31,

 

 

 

2016

 

 

2015

 

 

2014

 

Valuation Assumptions:

 

 

 

 

 

 

 

 

 

 

 

 

Expected volatility

 

 

44.0

%

 

 

41.2

%

 

 

50.0

%

Risk-free interest rate

 

 

1.3

%

 

 

1.4

%

 

 

0.9

%

Expected dividends (per share)

 

$

—

 

 

$

—

 

 

$

0.75

 

Expected term (in years)

 

 

4.5

 

 

 

4.5

 

 

 

3.4

 

 
Summary of Stock Option Activity

The following table summarizes award activity for stock options:

 

Stock Options(1)

 

Shares

(in thousands)

 

 

Weighted-

Average

Exercise

Price

 

 

Weighted-

Average

Remaining

Contractual

Term

 

 

Aggregate

Intrinsic Value

(in millions)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Outstanding as of December 31, 2015

 

 

3,990

 

 

$

29.81

 

 

 

 

 

 

 

 

 

Granted

 

 

978

 

 

 

14.02

 

 

 

 

 

 

 

 

 

Forfeited

 

 

(95

)

 

 

22.75

 

 

 

 

 

 

 

 

 

Exercised or settled

 

 

(20

)

 

 

14.06

 

 

 

 

 

 

 

 

 

Outstanding as of December 31, 2016

 

 

4,853

 

 

$

26.83

 

 

 

5.7

 

 

$

7

 

Exercisable at December 31, 2016

 

 

3,225

 

 

$

30.58

 

 

 

5.5

 

 

$

1

 

 

 

(1)

All stock option awards presented in this table are for NOW stock only.
Summary of Status of Nonvested Shares of RSAs and RSUs

The following table summarizes award activity for restricted stock awards and restricted stock units:

 

RSAs / RSUs(1)

 

Shares

(in thousands)

 

 

Weighted-

Average

Grant-Date

Fair Value

 

 

 

 

 

 

 

 

 

 

Nonvested as of December 31, 2015

 

 

2,384

 

 

$

29.31

 

Granted

 

 

295

 

 

 

14.71

 

Vested(2)

 

 

(341

)

 

 

28.23

 

Forfeited

 

 

(27

)

 

 

25.52

 

Nonvested as of December 31, 2016

 

 

2,311

 

 

$

27.66

 

 

 

(1)

All RSUs and RSAs presented in this table are for NOW stock only.

 

(2)

105 thousand shares were withheld and retired from the vesting of shares to employees to satisfy minimum tax withholding.

The following table summarizes award activity for performance stock awards:

 

PSAs

 

Shares

(in thousands)

 

 

Weighted-

Average

Grant-Date

Fair Value

 

 

 

 

 

 

 

 

 

 

 

 

Nonvested as of December 31, 2015

 

 

73

 

 

$

24.34

 

 

Granted

 

 

169

 

 

 

16.47

 

 

Vested

 

 

—

 

 

 

—

 

 

Forfeited

 

 

(9

)

 

 

19.83

 

 

Nonvested as of December 31, 2016

 

 

233

 

 

$

18.81