Stock compensation plans

We maintain a stock award plan for both employees and non-employee directors. The plan provides for the grant of a variety of equity awards, including options (generally non-qualified options), restricted stock, performance shares, and restricted stock units ("RSUs") to key employees (as determined by the Compensation and Management Development Committee of the Board of Directors) for periods not exceeding ten years. Non-employee directors are entitled to an annual distribution of stock options, common stock, or restricted stock units. All options granted to non-employee directors vest immediately and are exercisable on the grant date for ten years. Options granted to employees generally vest incrementally over four years. Restricted stock and RSUs generally cliff vest after three years. Restricted stock holders have voting rights during the vesting period and both restricted stock and RSU holders receive cash dividends during the vesting period. Performance shares vest upon attainment of the stated performance targets and minimum service requirements and are converted into shares of common stock upon distribution. RSUs represent the right to receive an equal number of shares of common stock and are converted into shares of common stock upon distribution. As of December 31, 2014, there were 23.5 million shares that remained available for grant under the plan.

Our stock compensation expense for the three years ended December 31, 2014 is presented below ($000's omitted):



	2014		2013		2012
Stock options	$	121	$	1,056	$	2,617
Restricted stock (including RSUs and performance shares)	13,690		13,418		10,077
Long-term incentive plans	15,481		16,006		10,203
	$	29,292	$	30,480	$	22,897

Stock options

A summary of stock option activity for the three years ended December 31, 2014 is presented below (000’s omitted except per share data):



	2014					2013					2012
	Shares			Weighted- Average Per Share Exercise Price		Shares			Weighted- Average Per Share Exercise Price		Shares			Weighted- Average Per Share Exercise Price
Outstanding, beginning of year	12,887			$	23	17,148			$	22	21,641			$	21
Granted	—			—		—			—		—			—
Exercised	(1,422		)	11		(1,432		)	14		(2,877		)	11
Forfeited	(2,095		)	29		(2,829		)	25		(1,616		)	27
Outstanding, end of year	9,370			$	23	12,887			$	23	17,148			$	22
Options exercisable at year end	9,265			$	23	12,402			$	23	15,719			$	23
Weighted-average per share fair value of options granted during the year	$	—				$	—				$	—

The following table summarizes information about the weighted-average remaining contractual lives of stock options outstanding and exercisable at December 31, 2014:



	Options Outstanding				Options Exercisable
	Number Outstanding (000's omitted)	Weighted- Average Remaining Contract Life (in years)	Weighted- Average Per Share Exercise Price		Number Exercisable (000's omitted)	Weighted- Average Per Share Exercise Price
$0.01 to $11.00	907	4.0	$	10	802	$	10
$11.01 to $18.00	4,003	4.6	12		4,003	12
$18.01 to $25.00	417	0.3	23		417	23
$25.01 to $35.00	1,997	1.9	34		1,997	34
$35.01 to $45.00	2,046	0.9	40		2,046	40
	9,370	3.0	$	23	9,265	$	23

We did not issue any stock options during 2014, 2013, or 2012. As a result, there is no unrecognized compensation cost related to stock option awards at December 31, 2014. The intrinsic value of a stock option is the amount by which the market value of the underlying stock exceeds the exercise price of the option. The aggregate intrinsic value of stock options that were exercised during 2014, 2013, and 2012 was $14.1 million, $10.8 million, and $8.6 million, respectively. As of December 31, 2014, options outstanding had an intrinsic value of $48.8 million, of which $47.3 million related to options exercisable.

Restricted stock (including RSUs and performance shares)

A summary of restricted stock activity, including RSUs and performance shares, for the three years ended December 31, 2014 is presented below (000’s omitted, except per share data):



	2014				2013				2012
	Shares		Weighted- Average Per Share Grant Date Fair Value		Shares		Weighted- Average Per Share Grant Date Fair Value		Shares		Weighted- Average Per Share Grant Date Fair Value
Outstanding, beginning of year	3,211		$	11	3,822		$	9	3,042		$	9
Granted	974		$	19	806		$	21	1,461		$	10
Distributed	(1,019	)	$	10	(1,391	)	$	11	(544	)	$	11
Forfeited	(276	)	$	15	(26	)	$	15	(137	)	$	10
Outstanding, end of year	2,890		$	15	3,211		$	11	3,822		$	9
Vested, end of year	75		$	13	60		$	12	51		$	10

During 2014, 2013, and 2012, the total fair value of shares vested during the year was $8.1 million, $12.7 million, and $3.7 million, respectively. Unamortized compensation cost related to restricted stock awards was $13.9 million at December 31, 2014. These costs will be expensed over a weighted-average period of approximately 2 years.

Certain individuals have received grants of performance shares. The fair value of each performance share was calculated using the stock price on the grant date. We recognize expense when it becomes probable that the stated performance targets will be achieved. Unamortized compensation cost related to performance shares considered probable was $0.2 million at December 31, 2014 and will be expensed over a weighted-average period of less than one year. Additionally, there were 75,080 RSUs outstanding at December 31, 2014 that had vested but had not yet been paid out because the payout date had been deferred by the holder.

Long-term incentive plans

We maintain a long-term incentive plan for certain of our field employees that provides awards based on the achievement of stated performance targets over a three-year period. Awards are earned each year in the form of share units that are paid out in cash at the end of the performance period based upon the number of share units earned times the stock price at the end of the performance period. Accordingly, the liability associated with the awards is adjusted each reporting period based on movements in the stock price and totaled $9.5 million and $12.6 million at December 31, 2014 and 2013, respectively.

We also maintain a long-term performance award plan for senior management that provides awards based on the achievement of stated performance targets over a three-year period. Awards are earned based on our cumulative performance over the performance period and are stated in dollars but settled in common shares based on the stock price at the end of the performance period. If the stock price falls below a floor of $5.00 per share at the end of the performance period or we do not have a sufficient number of shares available under our stock incentive plans at the time of settlement, then a portion of each award will be paid in cash. We recognize expense for these awards based on the probability of achievement of the stated performance targets. The liability for these awards totaled $26.2 million and $14.3 million at December 31, 2014 and 2013, respectively.