Stock-based Compensation (Tables)
|
12 Months Ended |
Dec. 31, 2013
|
Share-based Compensation Plans |
The
Company’s share-based compensation plans at December 31,
2013 follow:
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Plan
Name
|
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Shares
Authorized
for
Grant |
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|
Awards
Outstanding |
|
|
Shares
Available
for Grant |
|
Patterson-UTI Energy, Inc.
2005 Long-Term Incentive Plan, as amended
|
|
|
15,250,000 |
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|
8,026,643 |
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|
274,071 |
|
Patterson-UTI Energy, Inc.
Amended and Restated 1997 Long-Term Incentive Plan, as amended
(“1997 Plan”)
|
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— |
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810,000 |
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— |
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Weighted-Average Assumptions Used to Estimate Grant Date Fair Values for Stock Options Granted |
Weighted-average assumptions used to estimate grant date fair
values for stock options granted in the years ended
December 31, 2013, 2012 and 2011 follow:
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2013 |
|
|
2012 |
|
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2011 |
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Volatility
|
|
|
41.36 |
% |
|
|
48.79 |
% |
|
|
45.97 |
% |
Expected term (in
years)
|
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|
5.00 |
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|
5.00 |
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|
5.00 |
|
Dividend yield
|
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0.89 |
% |
|
|
1.21 |
% |
|
|
0.67 |
% |
Risk-free interest
rate
|
|
|
0.70 |
% |
|
|
0.87 |
% |
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|
2.34 |
% |
|
Stock Option Activity |
Stock option
activity for the year ended December 31, 2013
follows:
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Shares |
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Weighted-average
exercise price |
|
Outstanding at beginning of
year
|
|
|
7,827,195 |
|
|
$ |
20.35 |
|
Granted
|
|
|
692,500 |
|
|
$ |
22.51 |
|
Exercised
|
|
|
(1,190,000 |
) |
|
$ |
16.21 |
|
Cancelled
|
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|
(10,000 |
) |
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$ |
18.63 |
|
Expired
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— |
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— |
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Outstanding at end of
year
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7,319,695 |
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$ |
21.23 |
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Exercisable at end of
year
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6,250,860 |
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$ |
21.29 |
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Additional Information with Respect to Options Granted, Vested and Exercised |
Additional
information with respect to options granted, vested and exercised
during the years ended December 31, 2013, 2012 and 2011
follows:
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2013 |
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2012 |
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2011 |
|
Weighted-average grant date
fair value of stock options granted (per share)
|
|
$ |
7.59 |
|
|
$ |
6.37 |
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$ |
12.24 |
|
Aggregate grant date fair
value of stock options vested during the year (in
thousands)
|
|
$ |
5,240 |
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|
$ |
5,512 |
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$ |
5,639 |
|
Aggregate intrinsic value
of stock options exercised (in thousands)
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$ |
8,683 |
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$ |
138 |
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$ |
12,663 |
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Restricted Stock Activity |
Restricted
stock activity for the year ended December 31, 2013
follows:
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Shares |
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|
Weighted-
average Grant
Date Fair Value |
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Non-vested restricted stock
outstanding at beginning of year
|
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1,279,146 |
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$ |
20.03 |
|
Granted
|
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|
954,750 |
|
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$ |
21.66 |
|
Vested
|
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|
(653,636 |
) |
|
$ |
20.56 |
|
Forfeited
|
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|
(83,568 |
) |
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$ |
20.04 |
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Non-vested restricted stock
outstanding at end of year
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1,496,692 |
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$ |
20.84 |
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Restricted Stock Unit Activity |
Restricted
stock unit activity for the year ended December 31, 2013
follows:
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Shares |
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Weighted-
average
Grant Date
Fair Value |
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Non-vested restricted stock
units outstanding at beginning of year
|
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|
17,670 |
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$ |
20.08 |
|
Granted
|
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|
11,250 |
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|
$ |
21.09 |
|
Vested
|
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|
(8,664 |
) |
|
$ |
20.01 |
|
Forfeited
|
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|
— |
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— |
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Non-vested restricted stock
units outstanding at end of year
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20,256 |
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$ |
20.67 |
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Stock-Settled Performance Units |
The total
target number of shares with respect to the Stock-Settled
Performance Units is set forth below:
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2013
Performance
Unit Awards |
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2012
Performance
Unit
Awards |
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2011
Performance
Unit
Awards |
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|
2010
Performance
Unit
Awards |
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Target number of
shares
|
|
|
236,500 |
|
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|
192,000 |
|
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|
144,375 |
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|
178,750 |
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Fair Value of Stock-Settled Performance Units |
The fair value
of the Stock-Settled Performance Units is set forth below (in
thousands):
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2013
Performance
Unit Awards |
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2012
Performance
Unit
Awards |
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2011
Performance
Unit
Awards |
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2010
Performance
Unit
Awards |
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Aggregate fair value at
date of grant
|
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$ |
5,564 |
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$ |
3,065 |
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|
$ |
5,569 |
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|
$ |
3,117 |
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Compensation Expense Associated with Stock-Settled Performance Units |
Compensation
expense associated with the Stock-Settled Performance Units is set
forth below (in thousands):
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2013
Performance
Unit Awards |
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2012
Performance
Unit
Awards |
|
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2011
Performance
Unit
Awards |
|
|
2010
Performance
Unit
Awards |
|
Year ended
December 31, 2013
|
|
$ |
1,391 |
|
|
$ |
1,022 |
|
|
$ |
1,856 |
|
|
$ |
260 |
|
Year ended
December 31, 2012
|
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|
NA |
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|
|
766 |
|
|
$ |
1,856 |
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$ |
1,039 |
|
Year ended
December 31, 2011
|
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|
NA |
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NA |
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$ |
1,392 |
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$ |
1,039 |
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|
Employee Stock Option
|
|
Additional Information with Respect to Non-vested Shares |
Additional
information as of December 31, 2013 with respect to these
non-vested options follows:
|
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Aggregate intrinsic
value
|
|
$5.0 million |
Weighted-average remaining
contractual term
|
|
8.90 years |
Weighted-average remaining
expected term
|
|
3.90 years |
Weighted-average remaining
vesting period
|
|
1.81 years |
Unrecognized compensation
cost
|
|
$6.3 million |
|
Restricted Stock Awards
|
|
Additional Information with Respect to Non-vested Shares |
Additional
information as of December 31, 2013 with respect to these
non-vested shares follows:
|
|
|
Aggregate intrinsic
value
|
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$35.5 million |
Weighted-average remaining
vesting period
|
|
1.94 years |
Unrecognized compensation
cost
|
|
$22.5 million |
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