1.0.0.3falseShare Based Compensationfalse1$falsefalseu000Standardhttp://www.xbrl.org/2003/iso4217USDiso42170u001Standardhttp://www.xbrl.org/2003/instancesharesxbrli0u002Dividehttp://www.xbrl.org/2003/iso4217USDiso4217http://www.xbrl.org/2003/instancesharesxbrli020str_NotesToFinancialStatementsAbstractstrfalsenadurationstringNo definition available.falsefalsefalsefalsefalsetruefalsefalsefalse1falsefalse00falsefalseNo definition available.false31us-gaap_DisclosureOfCompensationRelatedCostsShareBasedPaymentsTextBlockus-gaaptruenadurationstringNo definition available.falsefalsefalsefalsefalsefalsefalsefalsefalse1falsefalse00Note 4 - Share-Based Compensation
Questar issues stock options and restricted shares to certain officers, employees and non-employee directors under its Long-term Stock Incentive Plan (LTSIP). For the first nine months share-based compensation expense amounted to $17.4 million in 2009 compared with $12.6 million in 2008. Deferred share-based compensation, representing the unvested restricted shares awards amounted to $17.9 million at September 30, 2009, and $17.7 million at December 31, 2008. For the first nine months cash flow from tax deductions in excess of recognized compensation expense amounted to $1.3 million in 2009 and $12.9 million in 2008. There were 8,235,455 shares available for future grant at September 30, 2009.
The Company uses the Black-Scholes-Merton mathematical model in estimating the fair value of stock options for accounting purposes. Fair-value calculations rely upon subjective assumptions used in the mathematical model and may not be representative of future results. The Black-Scholes-Merton model is intended to measure the value of options traded on an exchange. The calculated fair value of options granted during the nine months ended September 30, 2009, and range of major assumptions used in the model at the dates of grant are listed below:
9 Months Ended
Sept. 30, 2009
Range of Stock Option Variables
Fair value of options at grant date $31.06 - $35.38Risk-free interest rate 1.78% - 2.51%Expected price volatility 28.1% - 29.9%Expected dividend yield 1.39% - 1.61%Expected life in years 5.0 - 5.0
Unvested stock options increased by 907,332 shares in the first nine months of 2009. Stock-option transactions under the terms of the LTSIP are summarized below:
Options
Outstanding
Price Range Weighted-
average
PriceBalance at Jan. 1, 2009 4,183,075 $ 7.50 - $53.83 $17.53 Granted 1,004,000 31.06 - 35.38 35.01
Exercised (298,430) 7.50 - 14.01 8.78
Forfeited (50,000) 28.58 28.58 Balance at Sept. 30, 2009 4,838,645 $7.50 - $53.83 $21.58
Options Outstanding Options Exercisable Unvested Options
Range of exercise
prices
Number outstanding at Sept. 30, 2009 Weighted-average remaining term in years Weighted-average exercise price Number exercisable at Sept. 30,2009 Weighted-average exercise price Number unvested at Sept. 30, 2009 Weighted- average exercise price$ 7.50 179,092 0.4 $ 7.50 179,092 $ 7.50 11.48 - 11.98 855,488 2.4 11.58 855,488 11.58 13.56 - 14.86 1,878,291 2.7 13.71 1,878,291 13.71 17.55 - 31.06 401,774 3.5 27.44 114,274 23.48 287,500 $29.01
$33.86 - $53.83 1,524,000 5.4 37.00 46,668 41.08 1,477,332 36.88 4,838,645 3.5 $21.58 3,073,813 $13.53 1,764,832 $35.59
Restricted-share grants typically vest in equal installments over a three- or four-year period from the grant date. Several grants vest in a single installment after a specified period. The weighted-average vesting period of unvested restricted shares at September 30, 2009, was 16 months. Transactions involving restricted shares under the terms of the LTSIP are summarized below:
Restricted Weighted-average
Shares Price Range Price
Balance at Jan. 1, 2009 856,000 $24.33 - $70.13 $45.64 Granted 407,650 29.30 - 36.88 34.96 Distributed (338,272) 24.33 - 70.13 38.23 Forfeited (25,426) 35.38 - 62.50 48.35 Balance at Sept. 30, 2009 899,952 $25.12 - $70.13 $43.52 Note 4 - Share-Based Compensation
Questar issues stock options and restricted shares to certain officers, employees and non-employee directors under itsfalsefalseNo definition available.No authoritative reference available.falsefalse12falseUnKnownUnKnownUnKnownfalsetrue