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STOCK-BASED COMPENSATION.
6 Months Ended
Jun. 30, 2015
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]  
Stock-based compensation
NOTE 7
– STOCK-BASED COMPENSATION.

EFFECT OF SPECIAL CASH DIVIDEND.

As a result of the special cash dividend declared by the Board of Directors in February 2015, the anti-dilution provisions of our employee long-term incentive plans and non-employee director plans (collectively the LTI Plans) require an automatic adjustment to neutralize the effect of the special dividend. On the special dividend's ex-dividend date (April 7, 2015), the number of shares authorized and the number of stock options outstanding and their exercise price were adjusted resulting in an increase of 749,578 stock options outstanding on the ex-dividend date, and no incremental compensation expense.

STOCK OPTIONS.

The following table summarizes the status of and changes in our stock option grants during the first half of 2015. All numbers have been adjusted to reflect the effect of the special dividend as noted above.
 
 
Options
 
Weighted-
average
exercise
price
Outstanding at December 31, 2014
30,463,211

 
$
55.63

Semiannual grants
1,979,081

 
$
80.95

New hire grants
9,735

 
$
79.19

Non-employee director grants
8,700

 
$
82.40

Exercised
(1,591,893
)
 
$
45.01

Forfeited
(314,795
)
 
$
68.22

Expired
(658
)
 
$
63.66

Outstanding at June 30, 2015
30,553,381

 
$
57.71

Exercisable at June 30, 2015
17,498,513

 
$
49.41



RESTRICTED SHARES AND STOCK UNITS.

The following table summarizes the status of and changes in our nonvested restricted shares and restricted stock units during the first half of 2015.
 
Restricted
shares
 
Restricted
stock
units
 
Weighted-average
fair value
Nonvested at December 31, 2014
2,061,559

 
1,006,753

 
$
72.79

Time-based grants
5,200

 
639,105

 
$
82.93

Performance-based grants

 
27,975

 
$
82.97

Vested
(14,588
)
 
(9,955
)
 
$
78.27

Forfeited
(45,371
)
 
(31,633
)
 
$
72.97

Nonvested at June 30, 2015
2,006,800

 
1,632,245

 
$
74.62



The nonvested at June 30, 2015, includes 28,800 performance-based restricted shares and 175,500 performance-based restricted stock units. These performance-based restricted shares and units include 22,800 restricted shares and 121,050 restricted stock units for which the performance period has lapsed and the performance threshold has been met.

FUTURE STOCK-BASED COMPENSATION EXPENSE.

The following table presents the compensation expense (in millions) to be recognized over the remaining vesting periods of the stock-based awards outstanding at June 30, 2015. Estimated future compensation expense will change to reflect future option grants; future awards of unrestricted shares, restricted stock units; changes in estimated forfeitures; changes in the probability of performance thresholds being met; and adjustments for actual forfeitures.
 
Third quarter 2015
$
35.3

Fourth quarter 2015
31.7

2016
87.3

2017 through 2020
88.8

Total
$
243.1