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Incentive Plans (Tables)
12 Months Ended
Dec. 31, 2014
Incentive Plans [Abstract]  
Share-Based Plans, Amounts Recognized

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(Thousands of dollars)

2014

 

2013

 

2012

Compensation charged against income before
    income tax benefit

$

53,157 

 

66,976 

 

46,694 

Related income tax benefit recognized in income

 

15,604 

 

19,321 

 

14,443 

 

Fair Value of Option Award Estimated on Date of Grant using Black-Scholes Pricing Model

 

 

 

 

 

 

 

 

 

 

 

 

 

2014

 

2013

 

2012

 

 

 

 

 

 

Fair value per option grant

$12.84

 

$15.81$20.62

 

$12.37$17.74

Assumptions

 

 

 

 

 

        Dividend yield

2.00%

 

2.10%2.30%

 

1.80%2.27%

        Expected volatility

29.00%

 

34.00%36.00%

 

39.00%39.62%

        Risk-free interest rate

1.62%

 

0.96%2.00%

 

0.55%0.77%

        Expected life

5.35 yrs.

 

5.25 yrs. – 6.50 yrs.

 

4.00 yrs. – 5.20 yrs.

 

Changes in Stock Options Outstanding

 

 

 

 

 

 

 

 

 

 

 

Number of
Shares

 

Average
Exercise
Price   

Outstanding at December 31, 2011

5,434,228 

 

$

55.17 

Granted at FMV

1,870,500 

 

 

57.96 

Exercised

(823,855)

 

 

38.37 

Forfeited

(573,514)

 

 

60.43 

       Outstanding at December 31, 2012

5,907,359 

 

 

55.17 

Granted at FMV

1,320,176 

 

 

55.26 

Exercised

(1,335,355)

 

 

45.84 

Forfeited

(228,576)

 

 

58.01 

Surrendered in connection with separation of Murphy USA Inc.

(272,936)

 

 

55.99 

Murphy USA Inc. spin-off adjustment

615,917 

 

 

52.09 

       Outstanding at December 31, 2013

6,006,585 

 

 

56.80 

Granted at FMV

772,900 

 

 

55.82 

Exercised

(862,407)

 

 

49.27 

Forfeited

(314,828)

 

 

54.53 

       Outstanding at December 31, 2014

5,602,250 

 

 

57.95 

 

 

 

 

 

Exercisable at December 31, 2011

2,319,735 

 

$

51.14 

Exercisable at December 31, 2012

2,474,636 

 

 

54.43 

Exercisable at December 31, 2013

2,435,322 

 

 

51.79 

Exercisable at December 31, 2014

3,030,105 

 

 

53.10 

 

Additional Information about Stock Options Outstanding

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Options Outstanding

 

Options Exercisable

Range of Exercise
Prices per Option

 

No. of
Options

 

Avg. Life
Remaining
in Years

 

Aggregate
Intrinsic
Value

 

No. of
Options

 

Avg. Life
Remaining
in Years

 

Aggregate
Intrinsic
Value

$37.44 to $39.02

 

444,524 

 

2.4

 

$

5,533,247 

 

356,103 

 

1.9

 

$

4,516,795 

$43.88 to $51.63

 

1,772,764 

 

1.8

 

 

2,786,024 

 

1,162,708 

 

2.4

 

 

2,786,024 

$54.21 to $63.46

 

3,384,962 

 

4.0

 

 

 –

 

1,511,294 

 

2.1

 

 

 –

 

 

5,602,250 

 

3.6

 

$

8,319,271 

 

3,030,105 

 

2.4

 

$

7,302,819 

 

Changes in Performance-Based RSU Outstanding

 

 

 

 

 

 

 

 

 

 

 

 

(Number of share units)

2014

 

2013

 

2012

Outstanding at beginning of year

1,560,292 

 

1,426,238 

 

1,174,492 

Granted

464,300 

 

521,776 

 

653,355 

Awarded

(473,186)

 

(380,150)

 

(260,175)

Forfeited

(154,366)

 

(39,573)

 

(141,434)

Surrendered in connection with
    separation of Murphy USA Inc.

– 

 

(116,568)

 

– 

Murphy USA Inc. spin-off adjustment

– 

 

148,569 

 

– 

          Outstanding at end of year

1,397,040 

 

1,560,292 

 

1,426,238 

 

Assumptions used in Valuation of Performance Awards Granted

 

 

 

 

 

 

 

 

 

 

 

 

 

2014

 

2013

 

2012

 

 

 

 

 

 

Fair value per share at grant date

$33.90$51.30

 

$39.50$68.01

 

$54.90$63.64

Assumptions

 

 

 

 

 

        Expected volatility

29.00%

 

31.00%32.00%

 

37.00%

        Risk-free interest rate

0.65%

 

0.41%0.62%

 

0.30%

        Stock beta

0.843

 

0.9070.908

 

0.913

        Expected life

3.0 yrs.

 

3.0 yrs.

 

3.0 yrs.

 

Changes in Time-Lapse Restricted Stock and Restricted Stock Units Outstanding

 

 

 

 

 

 

 

 

 

 

 

 

(Number of share units)

2014

 

2013

 

2012

 

 

 

 

 

 

Outstanding at beginning of year

112,881 

 

98,477 

 

116,724 

Granted

278,892 

 

38,184 

 

42,256 

Vested and issued

(54,884)

 

(34,696)

 

(44,980)

Forfeited

(15,100)

 

– 

 

(15,523)

Murphy USA Inc. spin-off adjustment

– 

 

10,916 

 

– 

          Outstanding at end of year

321,789 

 

112,881 

 

98,477