Share-based Compensation (Tables)

12 Months Ended

Dec. 31, 2017

Share‑based compensation expense consisted of the following:

	2017		2016		2015
	(In millions)
Restricted stock	$	56	$	45	$	67
Stock options		9		7		5
Performance share units		21		21		25
Share-based compensation expense before income taxes	$	86	$	73	$	97
Income tax benefit on share-based compensation expense	$	1	$	28	$	36

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, 2017		1,015		$	69.68		6,592		$	67.15		3,101		$	61.93
Granted		439			52.86		662			51.03		1,216			50.98
Exercised		—			—		(152	)		52.75		—			—
Vested		(265	)		90.37		—			—		(729	)		81.06
Forfeited		(43	)		61.23		(620	)		56.66		(386	)		56.72
Outstanding at December 31, 2017		1,146		$	58.78		6,482		$	66.84		3,202		$	54.04

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

	2017			2016			2015
Risk free interest rate		2.17	%		1.47	%		1.77	%
Stock price volatility		0.333			0.326		0.312
Dividend yield		1.96	%		2.26	%		1.34	%
Expected life in years		6.0			6.0			6.0
Weighted average fair value per option granted	$	14.51		$	11.33		$	21.00

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

	2017			2016			2015
Risk free interest rate		1.55	%		0.96	%		1.02	%
Stock price volatility		0.387		0.329				0.270
Contractual term in years		3.0			3.0			3.0
Grant date price of Hess common stock	$	51.03		$	44.31		$	74.49