Share-based Compensation (Tables)

12 Months Ended

Dec. 31, 2016

Share‑based compensation expense consisted of the following:

	2016		2015		2014
	(In millions)
Restricted stock	$	45	$	67	$	62
Stock options		7		5		2
Performance share units		21		25		19
Share-based compensation expense before income taxes (a)	$	73	$	97	$	83
Income tax benefit on share-based compensation expense	$	28	$	36	$	31

(a)Includes benefit related to discontinued operations of $4 million for 2014.

Share‑based compensation activity consisted of the following:

	Performance Share Units					Stock Options					Restricted Stock
	Performance Share Units			Weighted - Average Fair Value on Date of Grant		Options			Weighted - Average Exercise Price per Share		Shares of Restricted Common Stock			Weighted - Average Price on Date of Grant
	(In thousands, except per share amounts)
Outstanding at January 1, 2016		820		$	89.43		6,911		$	67.77		2,820		$	75.32
Granted		447			50.94		824			44.60		1,661			44.69
Exercised		—			—		(227	)		53.43		—			—
Vested		(193	)		111.49		—			—		(833	)		69.57
Forfeited		(59	)		65.11		(916	)		55.00		(547	)		66.98
Outstanding at December 31, 2016		1,015		$	69.68		6,592		$	67.15		3,101		$	61.93

The following weighted average assumptions were utilized to estimate the fair value of stock options:

	2016			2015			2014
Risk free interest rate		1.47	%		1.77	%		1.86	%
Stock price volatility		0.326		0.312				0.363
Dividend yield		2.26	%		1.34	%		1.24	%
Expected life in years		6.0			6.0			6.0
Weighted average fair value per option granted	$	11.33		$	21.00		$	26.46

The following weighted average assumptions were utilized to estimate the fair value of PSU awards:

	2016			2015			2014
Risk free interest rate		0.96	%		1.02	%		0.65	%
Stock price volatility		0.329			0.270		0.359
Contractual term in years		3.0			3.0			3.0
Grant date price of Hess common stock	$	44.31		$	74.49		$	80.35