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Stock-Based Compensation
 9 Months Ended
Sep. 30, 2014
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]  
Stock-Based Compensation
Stock-Based Compensation
Stock-based compensation expense totaled $4 million and $2 million for the quarters ended September 30, 2014 and 2013 and $8 million and $7 million for the nine months ended September 30, 2014 and 2013 . Stock-based compensation expense relates primarily to our performance-based long-term incentive program ("LTIP"), stock options and restricted stock unit ("RSU") awards. LTIP awards cover three-year performance cycles and are measured partly on performance criteria (cumulative earnings per share and/or cumulative free cash flow generation) and partly on market criteria (total shareholder return relative to a peer group of companies). The fair value of LTIP awards containing performance criteria are based on our expectations of performance achievement and the closing stock price on the measurement date. The fair value of LTIP awards based on market criteria are measured using a Monte-Carlo simulation using publicly available data.
Our LTIP awards are liability-classified awards, which do not affect "Capital surplus" until and if these awards are paid in shares. All other stock-based compensation is equity-classified, and therefore affects "Capital surplus." Changes in "Capital surplus" are primarily a result of stock compensation:
 
Quarter Ended September 30,
 
Nine Months Ended September 30,
(In thousands)
2014
 
2013
 
2014
 
2013
Stock-based compensation
$
1,818

 
$
1,713

 
$
5,493

 
$
5,541

Shares withheld for taxes
(683
)
 
(1,508
)
 
(940
)
 
(1,840
)
Capital surplus increase
$
1,135

 
$
205

 
$
4,553

 
$
3,701