For the years ended December 31, our stock-based compensation expense consisted of the following:



	2016			2015			2014
	(In millions)
Equity awards	$	32		$	42		$	47
Liability awards:
Cash-settled restricted stock units	21			15			20
Stockholder Value Appreciation Program	—			(3		)	38
Total liability awards	21			12			58
Total stock-based compensation	53			54			105
Capitalized in oil and gas properties	(17		)	(18		)	(40		)
Net stock-based compensation expense	$	36		$	36		$	65

As of December 31, 2016, we had approximately $61 million of total unrecognized stock-based compensation expense related to unvested stock-based compensation awards that vest within four years. On December 31, 2016, the last reported sales price of our common stock on the New York Stock Exchange was $40.50 per share.

Equity Awards

Equity awards consist of service-based and performance- or market-based restricted stock awards and restricted stock units, stock options and stock purchase options under the Employee Stock Purchase Plan (ESPP).

Stock-based compensation classified as equity awards are currently granted under the 2011 Omnibus Stock Plan, as amended (2011 Plan), to employees and non-employee directors. The fair value of grants is determined utilizing the Black-Scholes option-pricing model for stock options and a Monte Carlo lattice-based model for our performance- and market-based restricted stock and restricted stock units. Compensation expense for equity awards is expected to be recognized on a straight-line basis over the applicable remaining vesting periods.

Shares available for grant under our 2011 Plan are reduced by 1.87 times the number of shares of restricted stock or restricted stock units awarded under the plan and are reduced by 1 times the number of shares subject to stock options awarded under the plan. In May 2015, our stockholders approved an additional 7.0 million shares available for issuance under our 2011 Plan, resulting in approximately (1) 5.1 million shares available for issuance under our 2011 Plan if all future awards are stock options, or (2) 2.7 million additional shares available for issuance under our 2011 Plan if all future awards are restricted stock awards or restricted stock units. Thus far, all awards under our 2011 Plan have been granted as restricted stock or restricted stock unit awards. We issue common shares on the grant date for restricted stock awards and on the exercise or vesting date for options and restricted stock units.

Restricted Stock. At December 31, 2016, our employees held approximately 1.6 million shares of non-vested restricted stock awards and restricted stock units. These shares primarily vest over three to five years and vesting is dependent upon the employee’s continued service with our Company. In addition, at December 31, 2016, our employees held approximately 0.9 million shares of restricted stock units subject to performance-based vesting criteria (all of which are currently considered market-based restricted stock under authoritative accounting guidance).

The following table provides information about restricted stock awards and restricted stock unit activity.



	Service-Based Shares		Weighted- Average Grant Date Fair Value per Share		Performance/ Market-Based Shares⁽¹⁾		Weighted- Average Grant Date Fair Value per Share		Total Shares
	(In thousands, except per share data)
Non-vested shares outstanding at January 1, 2014	2,999		$	33.45	706		$	34.22	3,705
Granted	465		30.40		338		18.59		803
Forfeited	(416	)	28.20		(69	)	27.56		(485	)
Vested	(1,146	)	36.65		(30	)	39.43		(1,176	)
Non-vested shares outstanding at December 31, 2014	1,902		30.79		945		28.61		2,847
Granted	1,036		31.20		414		22.85		1,450
Forfeited	(367	)	21.69		(97	)	36.72		(464	)
Vested	(871	)	32.10		(188	)	39.42		(1,059	)
Non-vested shares outstanding at December 31, 2015	1,700		30.30		1,074		23.76		2,774
Granted	990		37.95		436		28.94		1,426
Forfeited	(217	)	29.15		(77	)	43.04		(294	)
Vested	(899	)	29.34		(574	)	21.36		(1,473	)
Non-vested shares outstanding at December 31, 2016	1,574		$	35.56	859		$	26.28	2,433

_________________


(1)	In February 2016, we granted approximately 436,000 restricted stock units, which based on achievement of certain performance criteria, could vest within a range of 0% to 200% of shares granted upon completion of the performance period ending December 2018.

The total fair value of all restricted stock awards and restricted stock units that vested during the years ended December 31, 2016, 2015 and 2014 was $39 million, $35 million and $43 million, respectively.

Stock Options. Options generally expire ten years from the grant date and become exercisable at the rate of 20% per year. The exercise price of options cannot be less than the fair market value per share of our common stock on the grant date. We issue new shares of stock when stock options are exercised. No stock options have been granted since 2008, except for ESPP options as discussed in the Employee Stock Purchase Plan section below.

The following table provides information about outstanding stock options.



	Number of Shares Underlying Options	Weighted-Average Exercise Price per Share		Weighted-Average Remaining Contractual Life	Aggregate Intrinsic Value⁽¹⁾
	(In thousands)			(In years)	(In millions)
Outstanding and exercisable at:
December 31, 2014	301	$	43.93	2.2	$	—
December 31, 2015	195	48.45		2.1	—
December 31, 2016	177	48.45		1.1	—

_________________

(1) The intrinsic value of a stock option is the amount by which the market value of our common stock at the indicated date, or at the time of exercise, exceeds the exercise price of the option.

Employee Stock Purchase Plan. In May 2010, our stockholders approved the Newfield Exploration Company 2010 Employee Stock Purchase Plan (ESPP) with one million shares of our common stock available for issuance. Pursuant to our employee stock purchase plan, for each six-month period beginning on January 1 or July 1 during the plan term, each eligible employee has the opportunity to purchase our common stock for a purchase price equal to 85% of the lesser of the fair market value of our common stock on the first or last day of the period. Each employee may purchase up to $25,000 in common stock per calendar year. Employees of our China business are not eligible to participate in the plan. At December 31, 2016, approximately 121,000 shares of our common stock remained available for issuance under the current plan.

The fair value of the options granted was determined using the Black-Scholes option valuation method assuming no dividends and an expected life of six months. For the years ended December 31, our ESPP issuances and valuation assumptions consisted of the following:



	Options Issued	Weighted-Average Fair Value per Share		Risk-free Interest Rate		Weighted-Average Volatility
	(In thousands)
2014	168	$	7.91	0.07	%	32.05	%
2015	136	8.71		0.12		49.41
2016	99	10.51		0.43		47.94

Liability Awards

Liability awards consist of service-based awards that are settled in cash instead of shares, as discussed below.

Cash-Settled Restricted Stock Units. The value of the cash-settled restricted stock units, and the associated stock-based compensation expense, is based on the Company's stock price at the end of each period. As of December 31, 2016, we had a liability of $11 million for estimated future cash settlement upon vesting of awards. The following table provides information about cash-settled restricted stock unit activity.



	Cash-Settled Restricted Stock Units
	(In thousands)
Non-vested units outstanding at January 1, 2014	1,170
Granted	759
Forfeited	(126	)
Vested	(587	)
Non-vested units outstanding at December 31, 2014	1,216
Granted	211
Forfeited	(257	)
Vested	(462	)
Non-vested units outstanding at December 31, 2015	708
Granted	299
Forfeited	(101	)
Vested	(446	)
Non-vested units outstanding at December 31, 2016	460

Stockholder Value Appreciation Program. In 2013, the Compensation and Management Development Committee of the Board approved the SVAP to be administered under the 2011 Plan. The SVAP paid substantially all full-time domestic, nonexecutive employees a cash payment based on a percentage of salary upon each incremental $5 increase in our 30 calendar-day average share price. Each price threshold could be reached only once during the term of the program.

The first price threshold that triggered a payment under the SVAP was $27.50 during the fourth quarter of 2013. The second and third price thresholds for the SVAP were $32.50 and $37.50, respectively, which were reached during the second quarter of 2014. The fourth price threshold for the SVAP of $42.50 was reached in July 2014. Each of the SVAP payments was approximately $13 million. No liability existed at December 31, 2015 or thereafter, as the SVAP's performance period ended on that date.