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Benefit Plans (Tables)
12 Months Ended
Dec. 31, 2014
Summary of Fair Values for Stock-based Awards Granted Using Black-Scholes Option Pricing Model

The fair values for option awards granted in 2014, 2013 and 2012 were estimated at the date of grant using the Black-Scholes option pricing model with the following weighted-average assumptions:

 

 

For the Year Ended December 31

 

 

2014

 

 

2013

 

 

2012

 

Weighted-average fair value of grants

$

2.43

 

 

$

5.31

 

 

$

5.07

 

Risk-free interest rate (range) Based upon the U.S. Treasury Strip with a

   maturity date that approximates the expected term of the award

1.2%–1.4%

 

 

0.9%1.8%

 

 

0.5%–1.1%

 

Dividend yield (range) Forecasted dividend yield based on the expected

   life

4.5%–4.6%

 

 

4.1%–4.5%

 

 

3.6%–4.7%

 

Expected life (range) Derived by referring to actual exercise experience

4–5 years

 

 

5–6 years

 

 

4–5 years

 

Expected volatility (range) Derived by using a 50/50 blend of implied and

   historical changes in the Company's historical stock prices over a time

   frame consistent with the expected life of the award

24.7%–28.5%

 

 

49.2%–52.5%

 

 

50.8%–66.8%

 

 

Summary of Stock Option Activity

The following table reflects the stock option activity described above:

 

 

Number of Options

(Thousands)

 

 

Weighted-

 

 

Weighted-

Average

 

 

Aggregate

 

 

Employees

 

 

Directors

 

 

Average

Exercise

Price

 

 

Remaining

Contractual Term

(Years)

 

 

Intrinsic

Value

(Thousands)

 

Balance December 31, 2011

 

2,683

 

 

 

10

 

 

$

25.35

 

 

 

 

 

 

 

 

 

Granted

 

345

 

 

 

 

 

 

13.87

 

 

 

 

 

 

 

 

 

Exercised

 

(266

)

 

 

 

 

 

6.54

 

 

 

 

 

 

 

 

 

Forfeited

 

(166

)

 

 

(10

)

 

 

26.21

 

 

 

 

 

 

 

 

 

Balance December 31, 2012

 

2,596

 

 

 

 

 

 

25.70

 

 

 

 

 

 

 

 

 

Granted

 

345

 

 

 

 

 

 

16.91

 

 

 

 

 

 

 

 

 

Exercised

 

(87

)

 

 

 

 

 

9.25

 

 

 

 

 

 

 

 

 

Forfeited

 

(193

)

 

 

 

 

 

28.10

 

 

 

 

 

 

 

 

 

Balance December 31, 2013

 

2,661

 

 

 

 

 

 

24.77

 

 

 

 

 

 

 

 

 

Granted

 

774

 

 

 

 

 

 

16.61

 

 

 

 

 

 

 

 

 

Exercised

 

(154

)

 

 

 

 

 

10.02

 

 

 

 

 

 

 

 

 

Forfeited

 

(320

)

 

 

 

 

 

33.40

 

 

 

 

 

 

 

 

 

Balance December 31, 2014

 

2,961

 

 

 

 

 

$

22.48

 

 

 

5.6

 

 

$

11,088

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Options exercisable at December 31,

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2014

 

1,922

 

 

 

 

 

$

25.75

 

 

 

4.0

 

 

$

9,077

 

2013

 

2,052

 

 

 

 

 

 

27.53

 

 

 

4.1

 

 

 

6,491

 

2012

 

2,035

 

 

 

 

 

 

29.12

 

 

 

4.5

 

 

 

6,538

 

 

Summary of Characteristics of Options Outstanding

The following table summarizes the characteristics of the options outstanding at December 31, 2014 (in thousands):

 

 

 

Options Outstanding

 

 

Options Exercisable

 

Range of

Exercise Prices

 

Outstanding

at 12/31/14

 

 

Weighted-Average Remaining

Contractual Life

(Years)

 

 

Weighted-Average

Exercise Price

 

 

Exercisable at 12/31/14

 

 

Weighted-Average

Exercise Price

 

$0.00$6.50

 

 

471

 

 

 

4.0

 

 

$

6.01

 

 

 

471

 

 

$

6.01

 

$6.51–$12.50

 

 

200

 

 

 

5.3

 

 

 

10.42

 

 

 

197

 

 

 

10.39

 

$12.51–$21.00

 

 

1,480

 

 

 

8.2

 

 

 

15.88

 

 

 

444

 

 

 

14.56

 

$21.01–$45.50

 

 

490

 

 

 

2.0

 

 

 

38.74

 

 

 

490

 

 

 

38.74

 

$45.51–$69.50

 

 

320

 

 

 

1.8

 

 

 

59.96

 

 

 

320

 

 

 

59.96

 

 

 

 

2,961

 

 

 

5.7

 

 

$

22.48

 

 

 

1,922

 

 

$

25.75

 

 

Activities for Unvested Stock Option Awards

The following table reflects the activity for unvested stock option awards for the year ended December 31, 2014 (options in thousands):

 

 

Options

 

 

Weighted-Average

Grant Date

Fair Value

 

Unvested at December 31, 2013

$

609

 

 

$

5.26

 

Granted

 

774

 

 

 

2.43

 

Vested

 

(273

)

 

 

5.28

 

Forfeited

 

(71

)

 

 

3.95

 

Unvested at December 31, 2014

$

1,039

 

 

$

3.23

 

 

Summary of Employee Stock Option Exercises

The Company settles employee stock option exercises primarily with newly issued common shares or with treasury shares, if available (in millions).  

 

 

For the Year Ended December 31,

 

 

2014

 

 

2013

 

 

2012

 

Cash received for exercise price

$

1.5

 

 

$

0.8

 

 

$

1.7

 

Intrinsic value

 

1.1

 

 

 

0.7

 

 

 

2.2

 

 

VSEP grants [Member]  
Summary of Fair Value of Value Sharing Equity Program Grants

The fair value of the 2013 VSEP awards was estimated on the date of grant using a Monte Carlo approach model based on the following assumptions:

 

 

Range

 

Risk-free interest rate

 

0.36%

 

Weighted-average dividend yield

 

4.0%

 

Expected life

3 years

 

Expected volatility

18%24%

 

 

Activities for Unvested Restricted Stock Awards

The following table reflects the activity for the unvested awards pursuant to all restricted stock grants and grants under the 2009 VSEP and 2013 VSEP for the year ended December 31, 2014 (awards in thousands):

 

 

Awards

 

 

Weighted-Average

Grant Date

Fair Value

 

Unvested at December 31, 2013

 

1,719

 

 

$

14.35

 

Granted

 

765

 

 

 

17.43

 

Vested

 

(1,261

)

 

 

14.66

 

Forfeited

 

(58

)

 

 

10.59

 

Unvested at December 31, 2014

 

1,165

 

 

$

16.00