Stock-Based Compensation (Tables)

12 Months Ended

Dec. 31, 2011

Stock Based Compensation [Abstract]

Summary of stock-based compensation expense [Table Text Block]

Stock-based compensation expense included in our condensed statements of consolidated operations was as follows (in millions):    

	2011		2010		2009
Stock appreciation rights	$	27	$	26	$	11
Restricted common stock	8		13		13
Phantom stock options	5		11		7
Market stock units	4		—		—
Performance units	3		1		—
Performance share awards	2		—		—
Stock options	2		6		15
Other	2		1		—
Total Stock-Based Compensation Expense	$	53	$	58	$	46

Summary of stock appreciation rights [Table Text Block]

A summary of our SAR activity for the year ended December 31, 2011, is set forth below (shares in thousands):

	Number of SARs		Weighted Average Exercise Price	Weighted Average Remaining Contractual Term
Outstanding at January 1, 2011	7,372		$22.34	4.6 years
Exercised	(1,043	)	14.09
Forfeited	(292	)	23.16
Outstanding at December 31, 2011	6,037		23.72	3.5 years
Vested or expected to vest at December 31, 2011	6,037		23.72	3.5 years
Exercisable at December 31, 2011	4,345		27.53	3.2 years

Summary of stock appreciation rights valuation assumptions [Table Text Block]

The assumptions used to value our SARs as of December 31, 2011, 2010 and 2009 are presented below:

	2011	2010	2009
Expected life from date of grant (years)	6	6	6
Expected volatility	58%	57%	59%
Expected dividend yield	—%	—%	1.4%
Risk-free interest rate	1.2%	1.7%	3.0%

Summary of restricted common stock [Table Text Block]

A summary of our restricted common stock activity is set forth below (shares in thousands):

	Number of Restricted Shares		Weighted-Average Grant-Date Fair Value
Nonvested at January 1, 2011	1,762		$15.46
Granted	133		22.01
Vested	(761	)	18.34
Forfeited	(148	)	13.41
Nonvested at December 31, 2011	986		14.43

Summary of executive phantom stock options [Table Text Block]

A summary of our executive phantom stock option activity is set forth below (shares in thousands):

	Number of Options		Weighted Average Exercise Price	Weighted Average Remaining Contractual Term
Outstanding at January 1, 2011	1,487		$14.13	4.9 years
Exercised	(1,421	)	14.13
Forfeited	(66	)	14.13
Outstanding at December 31, 2011	—		—	—
Vested or expected to vest at December 31, 2011	—		—	—
Exercisable at December 31, 2011	—		—	—

Summary of executive phantom stock options valuation assumptions [Table Text Block]

The assumptions used to value our phantom stock options as of December 31, 2010 and 2009, are presented below:

	2010	2009
Expected life from date of grant (years)	7	9
Expected volatility	56%	59%
Expected dividend yield	—%	1.4%
Risk-free interest rate	1.9%	3.0%

Summary of market stock units [Table Text Block]

A summary of our market stock unit award activity, assuming a 100% payout, is set forth below (units in thousands):

	Number of Units		Weighted Average Grant-Date Fair Value	Intrinsic Value
				(In millions)
Nonvested at January 1, 2011	—		$—	$—
Granted	435		34.23
Forfeited	(11	)	34.45
Nonvested at December 31, 2011	424		34.22	9

Summary of market stock units valuation assumptions [Table Text Block]

The risk-free rate for periods within the performance period is based on the U.S. Treasury yield curve in effect at the time of grant. Tesoro’s weighted average assumptions are presented below:

	2011
Expected volatility	68%
Expected dividend yield	—%
Risk-free interest rate	0.95%

Summary of performance units [Table Text Block]

A summary of our performance unit activity is set forth below (units in thousands):

	Number of Performance Units		Fair Value per Unit at End of Period
Nonvested at January 1, 2011	4,984		$0.74
Granted	—
Forfeited	(689	)
Nonvested at December 31, 2011	4,295		1.20

Summary of performance unit awards valuation assumptions [Table Text Block]

The assumptions used in the Monte Carlo simulation used to value our performance units as of December 31, 2011 and 2010, are presented below:

	2011	2010
Expected volatility	49%	50%
Expected dividend yield	—%	—%
Risk-free interest rate	0.3%	0.6%

Summary of performance share awards valuation assumptions [Table Text Block]

The assumptions used in the Monte Carlo simulation used to value our market condition performance share awards as of December 31, 2011, are presented below:

	2011
Expected volatility	52%
Expected dividend yield	—%
Risk-free interest rate	0.4%

Summary of performance share awards [Table Text Block]

A summary of our performance share award activity, assuming a 100% payout, is set forth below (shares in thousands):

	Number of Shares		Weighted Average Grant-Date Fair Value
Nonvested at January 1, 2011	—		$—
Granted	278		31.53
Forfeited	(4	)	31.90
Nonvested at December 31, 2011	274		31.53

Summary of stock options

A summary of stock option activity for all plans is set forth below (options in thousands):

	Number of Options		Weighted-Average Exercise Price	Weighted-Average Remaining Contractual Term	Aggregate Intrinsic Value
					(In millions)
Outstanding at January 1, 2011	7,428		$23.23	5.0 years	$31
Granted	70		22.05
Exercised	(1,644	)	7.49
Forfeited or expired	(186	)	22.69
Outstanding at December 31, 2011	5,668		27.80	4.8 years	24
Vested or expected to vest at December 31, 2011	5,668		27.80	4.8 years	24
Exercisable at December 31, 2011	5,170		29.08	4.4 years	20

Summary of stock options valuation assumptions [Table Text Block]

Tesoro’s weighted average assumptions are presented below:

	2011	2010	2009
Expected life from date of grant (years)	6	6	6
Expected volatility	58%	59%	58%
Expected dividend yield	—%	—%	2.1%
Risk-free interest rate	1.8%	2.7%	2.0%