SHARE-BASED COMPENSATION:

We currently maintain the Stone Energy Corporation 2009 Amended and Restated Stock Incentive Plan, as amended from time to time (the “2009 Plan”). The 2009 Plan was originally approved at the 2009 Annual Meeting of Stockholders and is an amendment and restatement of the company’s 2004 Amended and Restated Stock Incentive Plan (the “2004 Plan”), and it supersedes and replaces in its entirety the 2004 Plan. The 2009 Plan provides for the granting of (a) “incentive” stock options as defined in Section 422 of the Code, (b) stock options that do not constitute incentive stock options (“non-statutory” stock options), (c) stock appreciation rights in conjunction with an incentive or non-statutory stock option, (d) restricted stock, (e) restricted stock units, (f) dividend equivalents, (g) other stock-based awards, (h) conversion awards, and (i) cash awards, any of which may be further designated as performance awards (collectively referred to as “awards”). See Note 16 - Employee Benefit Plans-Stock Incentive Plans for more information.

No stock options have been granted pursuant to the 2009 Plan since its initial effective date on May 28, 2009; however, we have previously granted options under the 2004 Plan that remain outstanding. Stock options previously granted to employees vested ratably over a five-year service-vesting period and expire 10 years subsequent to award. Stock options issued to non-employee directors vested ratably over a three-year service-vesting period and expire 10 years subsequent to award. We have granted restricted stock awards under the 2009 Plan, which awards typically vest over a one-year or three-year period.

We record share-based compensation expense under U.S. GAAP for share-based compensation awards based on the fair value on the date of grant. Compensation expense for share-based compensation awards is recognized in our financial statements over the vesting period of the award.

For the year ended December 31, 2015, we incurred $17,917 of share-based compensation, all of which related to restricted stock issuances, and of which a total of approximately $5,593 was capitalized into oil and gas properties. For the year ended December 31, 2014, we incurred $17,051 of share-based compensation, all of which related to restricted stock issuances, and of which a total of approximately $5,797 was capitalized into oil and gas properties. For the year ended December 31, 2013, we incurred $15,425 of share-based compensation, of which $15,405 related to restricted stock issuances and $20 related to stock option grants, and of which a total of approximately $5,078 was capitalized into oil and gas properties. Because of the non-cash nature of share-based compensation, the expensed portion of share-based compensation is added back to net income in arriving at net cash provided by operating activities in our statement of cash flows. The capitalized portion is not included in net cash used in investing activities.

Stock Options. There were no stock option grants during the years ended December 31, 2015, 2014 or 2013.

A summary of stock option activity during the year ended December 31, 2015 is as follows (amounts in table represent actual values except where indicated otherwise):



	Number of Options		Wgtd. Avg. Exercise Price		Wgtd. Avg. Term	Aggregate Intrinsic Value (in thousands)
Options outstanding, beginning of period	204,974		$	33.94
Granted	—		—
Exercised	—		—
Forfeited	—		—
Expired	(60,500	)	50.68
Options outstanding, end of period	144,474		26.92		2.1 years	$	—
Options exercisable, end of period	144,474		26.92		2.1 years	—
Options unvested, end of period	—		—		—	—

Exercise prices for stock options outstanding at December 31, 2015 range from $6.97 to $47.75.

A summary of stock option activity during the year ended December 31, 2014 is as follows (amounts in table represent actual values except where indicated otherwise):



	Number of Options		Wgtd. Avg. Exercise Price		Wgtd. Avg. Term	Aggregate Intrinsic Value (in thousands)
Options outstanding, beginning of period	331,174		$	39.37
Granted	—		—
Exercised	(250	)	46.20
Forfeited	—		—
Expired	(125,950	)	48.21
Options outstanding, end of period	204,974		33.94		2.4 years	$	531
Options exercisable, end of period	204,974		33.94		2.4 years	531
Options unvested, end of period	—		—		—	—

A summary of stock option activity during the year ended December 31, 2013 is as follows (amounts in table represent actual values except where indicated otherwise):



	Number of Options		Wgtd. Avg. Exercise Price		Wgtd. Avg. Term	Aggregate Intrinsic Value (in thousands)
Options outstanding, beginning of period	411,794		$	39.04
Granted	—		—
Exercised	—		—
Forfeited	(15,250	)	42.45
Expired	(65,370	)	36.56
Options outstanding, end of period	331,174		39.37		2.2 years	$	1,708
Options exercisable, end of period	318,279		40.62		2.1 years	1,373
Options unvested, end of period	12,895		8.64		5.0 years	335

Restricted Stock. The fair value of restricted shares is typically determined based on the average of our high and low stock prices on the grant date. During the year ended December 31, 2015, we issued 1,420,475 shares of restricted stock valued at $23,722. During the year ended December 31, 2014, we issued 674,904 shares of restricted stock valued at $24,593. During the year ended December 31, 2013, we issued 848,498 shares of restricted stock valued at $17,487.

A summary of the restricted stock activity under the 2009 Plan for the years ended December 31, 2015, 2014 and 2013 is as follows (amounts in table represent actual values):



	2015				2014				2013
	Number of Restricted Shares		Wgtd. Avg. Fair Value Per Share		Number of Restricted Shares		Wgtd. Avg. Fair Value Per Share		Number of Restricted Shares		Wgtd. Avg. Fair Value Per Share
Restricted stock outstanding, beginning of period	1,303,106		$	29.95	1,258,053		$	23.92	1,108,874		$	27.56
Issuances	1,420,475		16.70		674,904		36.44		848,498		20.61
Lapse of restrictions	(638,582	)	29.60		(598,796	)	24.57		(534,041	)	25.45
Forfeitures	(278,442	)	22.39		(31,055	)	30.19		(165,278	)	26.43
Restricted stock outstanding, end of period	1,806,557		$	20.83	1,303,106		$	29.95	1,258,053		$	23.92

As of December 31, 2015, there was $20,423 of unrecognized compensation cost related to all non-vested share-based compensation arrangements under the 2009 Plan. That cost is being amortized on a straight-line basis over the vesting period and is expected to be recognized over a weighted-average period of 1.7 years.

Under U.S. GAAP, if tax deductions exceed book compensation expense, then excess tax benefits are credited to additional paid-in capital to the extent realized. If book compensation expense exceeds tax deductions, the tax deficit results in either a reduction in additional paid-in capital and/or an increase in income tax expense, depending on the pool of available excess tax benefits to offset such deficit. Adjustments to additional paid-in capital related to the net tax effect of stock option exercises and restricted stock vesting were $0, ($54) and ($884) in 2015, 2014 and 2013, respectively. Additionally, during 2015 and 2014, $1,314 and $609 of tax deficits were charged to income tax expense, respectively.