Stock-Based Compensation Stock-Based Compensation (Notes)

9 Months Ended

Sep. 30, 2017

Share-based Compensation Arrangement by Share-based Payment Award [Line Items]

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

STOCK-BASED COMPENSATION

STOCK-BASED COMPENSATION EXPENSE (BENEFIT) (in millions)

	Three Months Ended September 30,				Nine Months Ended September 30,
	2017		2016		2017		2016
Market stock units (a)	$	8	$	7	$	22	$	21
Performance share awards (b)	3		3		11		7
Stock appreciation rights (c)	—		1		—		(14		)
Other stock-based awards (d)	6		2		28		7
Total Stock-Based Compensation Expense	$	17	$	13	$	61	$	21

(a) We granted 0.4 million market stock units at a weighted average grant date fair value of $107.43 per unit under the amended and restated 2011 Long-Term Incentive Plan (“2011 Plan”) during the nine months ended September 30, 2017.

(b) We granted 0.1 million market condition performance share awards at a weighted average grant date fair value of $118.09 per share under the 2011 Plan during the nine months ended September 30, 2017.

(c) We had $6 million recorded in other current liabilities associated with our stock appreciation rights (“SARs”) awards at December 31, 2016. There were no SARs outstanding at September 30, 2017. We paid cash of $4 million to settle 0.1 million SARs that were exercised during the nine months ended September 30, 2017 and $21 million to settle 0.3 million SARs that were exercised during the nine months ended September 30, 2016.

(d) We have aggregated expense for certain award types as they are not considered significant, including awards issued by Andeavor Logistics. During the three and nine months ended September 30, 2017, we recognized expense of $4 million and $21 million primarily related to pre-existing Western Refining, NTI and WNRL awards due to accelerated recognition required upon change-in-control on June 1, 2017. These Western Refining and NTI awards were converted to Andeavor shares on June 1, 2017. WNRL awards were converted to Andeavor Logistics units on the effective merger date of October 30, 2017. See Note 2.

The income tax effect recognized in the income statement for stock-based compensation was a benefit of $7 million and $5 million for the three months ended September 30, 2017 and 2016, respectively, and $40 million and $23 million for the nine months ended September 30, 2017 and 2016, respectively. Included in the tax benefits were $1 million of excess tax benefits from exercises and vestings for the three months ended September 30, 2017, and $18 million and $16 million for the nine months ended September 30, 2017 and 2016, respectively. There were no excess tax benefits from exercises and vestings for the three months ended September 30, 2016. The reduction in current taxes payable recognized from tax deductions resulting from exercises and vestings under all of our stock-based compensation arrangements totaled $3 million and $1 million for the three months ended September 30, 2017 and 2016, respectively, and $35 million and $37 million for the nine months ended September 30, 2017 and 2016, respectively.

All outstanding equity awards from Western Refining and NTI stock-based compensation plans were converted to Andeavor shares but remain under their respective Western Refining and NTI plans.