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Stock-based Compensation (Tables)
12 Months Ended
Dec. 31, 2017
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]  
Share-based Compensation Plans

The Company’s share-based compensation plans at December 31, 2017 are as follows:

 

 

 

Shares

 

 

Shares Underlying

 

 

Shares

 

 

 

Authorized

 

 

Awards

 

 

Available

 

Plan Name

 

for Grant

 

 

Outstanding

 

 

for Grant

 

Amended and Restated Plan

 

 

18,900,000

 

 

 

5,286,459

 

 

 

7,647,874

 

Patterson-UTI Energy, Inc. 2005 Long-Term Incentive Plan, as amended

 

 

 

 

 

3,804,500

 

 

 

 

 

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 during the years ended December 31, 2016 and 2015 are as follows:

 

 

 

2016

 

 

2015

 

Volatility

 

 

35.11

%

 

 

37.95

%

Expected term (in years)

 

 

5.00

 

 

 

5.00

 

Dividend yield

 

 

2.05

%

 

 

2.00

%

Risk-free interest rate

 

 

1.40

%

 

 

1.37

%

 

Stock Option Activity

Stock option activity for the year ended December 31, 2017 follows:

 

 

 

 

 

 

 

Weighted-average

 

 

 

Shares

 

 

exercise price

 

Outstanding at beginning of year

 

 

6,687,150

 

 

$

20.68

 

Exercised

 

 

(50,000

)

 

$

18.63

 

Expired

 

 

(600,000

)

 

$

24.17

 

Outstanding at end of year

 

 

6,037,150

 

 

$

20.35

 

Exercisable at end of year

 

 

5,515,968

 

 

$

20.49

 

 

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, 2017, 2016 and 2015 follows:

 

 

 

2017

 

 

2016

 

 

2015

 

Weighted-average grant date fair value of stock options granted (per share)

 

NA

 

 

$

4.90

 

 

$

5.79

 

Aggregate grant date fair value of stock options vested during the year

   (in thousands)

 

$

4,565

 

 

$

4,729

 

 

$

5,077

 

Aggregate intrinsic value of stock options exercised (in thousands)

 

$

209

 

 

$

366

 

 

$

 

 

Restricted Stock Activity

Restricted stock activity for the year ended December 31, 2017 follows:

 

 

 

 

 

 

 

Weighted-

 

 

 

 

 

 

 

average Grant

 

 

 

Shares

 

 

Date Fair Value

 

Non-vested restricted stock outstanding at beginning of year

 

 

1,427,455

 

 

$

22.26

 

Granted

 

 

890,904

 

 

$

21.78

 

Vested

 

 

(764,213

)

 

$

23.40

 

Forfeited

 

 

(23,808

)

 

$

22.34

 

Non-vested restricted stock outstanding at end of year

 

 

1,530,338

 

 

$

21.41

 

 

Restricted Stock Unit Activity

Restricted stock unit activity for the year ended December 31, 2017 follows:

 

  

 

 

 

 

 

Weighted-average

 

 

 

 

 

 

 

Grant Date Fair

 

 

 

Shares

 

 

Value

 

Non-vested restricted stock units outstanding at beginning of year

 

 

191,655

 

 

$

19.85

 

Granted

 

 

1,238,692

 

 

$

19.85

 

Assumed (1)

 

 

505,551

 

 

$

22.45

 

Vested

 

 

(549,451

)

 

$

22.24

 

Forfeited

 

 

(49,174

)

 

$

21.26

 

Non-vested restricted stock units outstanding at end of year

 

 

1,337,273

 

 

$

19.80

 

(1)

Restricted stock unit awards under the Seventy Seven Energy Inc. 2016 Omnibus Incentive Plan, which was adopted, assumed, amended and renamed by the Company in connection with the SSE merger.  No additional awards will be made under this plan.

Performance Units

The total target number of shares with respect to the Performance Units for the years 2012-2017 is set forth below:

 

 

 

2017

 

 

2016

 

 

2015

 

 

2014

 

 

2013

 

 

2012

 

 

 

Performance

 

 

Performance

 

 

Performance

 

 

Performance

 

 

Performance

 

 

Performance

 

 

 

Unit Awards

 

 

Unit Awards

 

 

Unit Awards

 

 

Unit Awards

 

 

Unit Awards

 

 

Unit Awards

 

Target number of shares

 

 

186,198

 

 

 

185,000

 

 

 

190,600

 

 

 

154,000

 

 

 

236,500

 

 

 

192,000

 

 

Fair Value of Performance Units

The fair value of the Performance Units is set forth below (in thousands):

 

 

 

2017

 

 

2016

 

 

2015

 

 

2014

 

 

2013

 

 

2012

 

 

 

Performance

 

 

Performance

 

 

Performance

 

 

Performance

 

 

Performance

 

 

Performance

 

 

 

Unit Awards

 

 

Unit Awards

 

 

Unit Awards

 

 

Unit Awards

 

 

Unit Awards

 

 

Unit Awards

 

Aggregate fair value at date of grant

 

$

5,780

 

 

$

3,854

 

 

$

4,052

 

 

$

5,388

 

 

$

5,564

 

 

$

3,065

 

 

Compensation Expense Associated with Performance Units

Compensation expense associated with the Performance Units is set forth below (in thousands):

 

 

 

2017

 

 

2016

 

 

2015

 

 

2014

 

 

2013

 

 

2012

 

 

 

Performance

 

 

Performance

 

 

Performance

 

 

Performance

 

 

Performance

 

 

Performance

 

 

 

Unit Awards

 

 

Unit Awards

 

 

Unit Awards

 

 

Unit Awards

 

 

Unit Awards

 

 

Unit Awards

 

Year ended December 31, 2017

 

$

1,284

 

 

$

1,285

 

 

$

1,351

 

 

$

449

 

 

NA

 

 

NA

 

Year ended December 31, 2016

 

NA

 

 

$

963

 

 

$

1,351

 

 

$

1,796

 

 

$

464

 

 

NA

 

Year ended December 31, 2015

 

NA

 

 

NA

 

 

 

1,013

 

 

$

1,796

 

 

$

1,855

 

 

$

255

 

 

Employee Stock Option  
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]  
Additional Information with Respect to Non-vested Options

Additional information as of December 31, 2017 with respect to these non-vested options follows:

 

Aggregate intrinsic value

 

$2.1 million

Weighted-average remaining contractual term

 

8.2 years

Weighted-average remaining expected term

 

3.2 years

Weighted-average remaining vesting period

 

1.4 years

Unrecognized compensation cost

 

$2.6 million

 

Restricted Stock Awards  
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]  
Additional Information with Respect to Non-vested Shares

Additional information as of December 31, 2017 with respect to these non-vested shares follows:

 

Aggregate intrinsic value

 

$34.0 million

Weighted-average remaining vesting period

 

1.3 years

Unrecognized compensation cost

 

$19.6 million