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Incentive Plans (Tables)
12 Months Ended
Dec. 31, 2018
Incentive Plans [Abstract]  
Share-Based Plans, Amounts Recognized



 

 

 

 

 

 



 

 

 

 

 

 

(Thousands of dollars)

2018

 

2017

 

2016

Compensation charged against income (loss) before income tax benefit

$

34,467 

 

40,365 

 

46,300 

Related income tax benefit recognized in income

 

4,383 

 

5,017 

 

15,244 



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



 

 

 

 

 



 

 

 

 

 



2018

 

2017

 

2016



 

 

 

 

 

Fair value per option grant

N/A

 

$7.96

 

$5.03

Assumptions

 

 

 

 

 

        Dividend yield

N/A

 

3.60%

 

4.00%

        Expected volatility

N/A

 

41.00%

 

45.00%

        Risk-free interest rate

N/A

 

1.97%

 

1.32%

        Expected life

N/A

 

5.30 yrs.

 

5.20 yrs.



Changes in Stock Options Outstanding



 

 

 

 



 

 

 

 



Number of
Shares

 

Average
Exercise
Price   



 

 

 

 

Outstanding at December 31, 2015

5,443,288 

 

$

52.93 

Granted at FMV

862,000 

 

 

17.57 

Exercised

– 

 

 

 -

Forfeited

(547,853)

 

 

44.23 

Outstanding at December 31, 2016

5,757,435 

 

 

48.46 

Granted at FMV

603,000 

 

 

28.51 

Exercised

– 

 

 

 –

Forfeited

(1,459,166)

 

 

49.34 

Outstanding at December 31, 2017

4,901,269 

 

 

45.74 

Granted at FMV

– 

 

 

 –

Exercised

(72,000)

 

 

17.57 

Forfeited

(834,674)

 

 

53.36 

Outstanding at December 31, 2018

3,994,595 

 

 

44.66 

Exercisable at December 31, 2015

3,542,352 

 

$

52.26 

Exercisable at December 31, 2016

3,830,535 

 

 

53.80 

Exercisable at December 31, 2017

3,197,269 

 

 

54.22 

Exercisable at December 31, 2018

3,182,345 

 

 

49.10 



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

$17.00 to $30.00

 

1,131,500 

 

4.5

 

$

3,719,263 

 

319,250 

 

4

 

$

1,859,631 

$31.00 to $50.00

 

817,350 

 

2.9

 

 

 –

 

817,350 

 

2.9

 

 

 –

$51.00 to $65.00

 

2,045,745 

 

1.0

 

 

 –

 

2,045,745 

 

1.0

 

 

 –



 

3,994,595 

 

2.4

 

$

3,719,263 

 

3,182,345 

 

1.8

 

$

1,859,631 



Changes in Performance-Based RSU Outstanding



 

 

 

 

 



 

 

 

 

 

(Number of stock units)

2018

 

2017

 

2016

Outstanding at beginning of year

1,187,921 

 

992,573 

 

1,103,986 

Granted

905,500 

 

560,000 

 

394,000 

Vested and issued

(311,866)

 

(272,725)

 

(361,096)

Forfeited

(121,138)

 

(91,927)

 

(144,317)

          Outstanding at end of year

1,660,417 

 

1,187,921 

 

992,573 



Assumptions used in Valuation of Performance Awards Granted



 

 

 

 

 



 

 

 

 

 



2018

 

2017

 

2016



 

 

 

 

 

Fair value per share at grant date

$22.99 - $30.56

 

$24.10$28.28

 

$12.21$16.34

Assumptions

 

 

 

 

 

        Expected volatility

48.00%

 

47.00%

 

33.00%

        Risk-free interest rate

2.30%

 

1.46%

 

0.93%

        Stock beta

1.103

 

1.058

 

0.863

        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)

2018

 

2017

 

2016



 

 

 

 

 

Outstanding at beginning of year

1,035,980 

 

923,282 

 

477,244 

Granted

823,803 

 

419,720 

 

503,555 

Vested and issued

(233,456)

 

(217,633)

 

(32,092)

Forfeited

(87,473)

 

(89,389)

 

(25,425)

          Outstanding at end of year

1,538,854 

 

1,035,980 

 

923,282