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Incentive Plans (Tables)
12 Months Ended
Dec. 31, 2015
Incentive Plans [Abstract]  
Share-Based Plans, Amounts Recognized

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(Thousands of dollars)

2015

 

2014

 

2013

Compensation charged against income (loss) before   

$

44,021 

 

53,157 

 

66,976 

     income tax benefit

 

 

 

 

 

 

Related income tax benefit recognized in income

 

13,583 

 

15,604 

 

19,321 

 

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

 

 

 

 

 

 

 

 

 

 

 

 

 

2015

 

2014

 

2013

 

 

 

 

 

 

Fair value per option grant

$10.97$11.08

 

$12.84

 

$15.81$20.62

Assumptions

 

 

 

 

 

        Dividend yield

2.40%2.50%

 

2.00%

 

2.10%2.30%

        Expected volatility

29.00%30.00%

 

29.00%

 

34.00%36.00%

        Risk-free interest rate

1.34%1.60%

 

1.62%

 

0.96%2.00%

        Expected life

5.30 yrs.

 

5.35 yrs.

 

5.25 yrs. – 6.50 yrs.

 

Changes in Stock Options Outstanding

 

 

 

 

 

 

 

 

 

 

 

Number of
Shares

 

Average
Exercise
Price   

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 

Granted at FMV

991,000 

 

 

49.67 

Exercised

(32,349)

 

 

40.80 

Forfeited

(1,117,613)

 

 

31.99 

       Outstanding at December 31, 2015

5,443,288 

 

 

52.93 

 

 

 

 

 

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 

Exercisable at December 31, 2015

3,542,352 

 

 

52.26 

 

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 $45.48

 

771,906 

 

0.9

 

$

 –

 

771,906 

 

0.9

 

$

 –

$49.65 to $51.63

 

2,067,449 

 

4.3

 

 

 –

 

1,219,449 

 

3.0

 

 

 –

$54.21 to $62.98

 

2,603,933 

 

3.5

 

 

 –

 

1,550,997 

 

2.7

 

 

 –

 

 

5,443,288 

 

3.4

 

$

 –

 

3,542,352 

 

2.4

 

$

 –

 

Changes in Performance-Based RSU Outstanding

 

 

 

 

 

 

 

 

 

 

 

 

(Number of share units)

2015

 

2014

 

2013

Outstanding at beginning of year

1,397,040 

 

1,560,292 

 

1,426,238 

Granted

455,000 

 

464,300 

 

521,776 

Awarded

(521,800)

 

(473,186)

 

(380,150)

Forfeited

(226,254)

 

(154,366)

 

(39,573)

Surrendered in connection with
    separation of Murphy USA Inc.

– 

 

– 

 

(116,568)

Murphy USA Inc. spin-off adjustment

– 

 

– 

 

148,569 

          Outstanding at end of year

1,103,986 

 

1,397,040 

 

1,560,292 

 

Assumptions used in Valuation of Performance Awards Granted

 

 

 

 

 

 

 

 

 

 

 

 

 

2015

 

2014

 

2013

 

 

 

 

 

 

Fair value per share at grant date

$44.03$48.12

 

$33.90$51.30

 

$39.50$68.01

Assumptions

 

 

 

 

 

        Expected volatility

26.00%

 

29.00%

 

31.00%32.00%

        Risk-free interest rate

0.85%

 

0.65%

 

0.41%0.62%

        Stock beta

0.813

 

0.843

 

0.9070.908

        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)

2015

 

2014

 

2013

 

 

 

 

 

 

Outstanding at beginning of year

321,789 

 

112,881 

 

98,477 

Granted

282,065 

 

278,892 

 

38,184 

Vested and issued

(69,610)

 

(54,884)

 

(34,696)

Forfeited

(57,000)

 

(15,100)

 

– 

Murphy USA Inc. spin-off adjustment

– 

 

– 

 

10,916 

          Outstanding at end of year

477,244 

 

321,789 

 

112,881