XML 29 R19.htm IDEA: XBRL DOCUMENT
v3.19.2

STOCK-BASED COMPENSATION | 9 Months Ended
--- | ---
Jun. 30, 2019
Share-based Payment Arrangement [Abstract] |
STOCK-BASED COMPENSATION | STOCK-BASED COMPENSATION On March 2, 2016, the Helmerich & Payne, Inc. 2016 Omnibus Incentive Plan (the “2016 Plan”) was approved by our stockholders. The 2016 Plan, among other things, authorizes the Human Resources Committee of the Board to grant non-qualified stock options, restricted stock awards and performance share units to selected employees and to non-employee directors. Restricted stock may be granted for no consideration other than prior and future services. The purchase price per share for stock options may not be less than market price of the underlying stock on the date of grant. Stock options expire 10 years after the grant date. Awards outstanding under the Helmerich & Payne, Inc. 2005 Long-Term Incentive Plan and the Helmerich & Payne, Inc. 2010 Long-Term Incentive Plan remain subject to the terms and conditions of those plans. During the nine months ended June 30, 2019, there were no non-qualified granted stock options, as we have, prospectively and for fiscal year 2019, replaced stock options with performance share units as a component of our executives’ long-term equity incentive compensation. We have also eliminated stock options as an element of our director compensation program. The Board has determined to award stock-based compensation to directors solely in the form of restricted stock. During the nine months ended June 30, 2019, 474,775 shares of restricted stock awards and 145,153 performance share units were granted under the 2016 Plan. A summary of compensation cost for stock-based payment arrangements recognized in selling, general and administrative expense is as follows:
| Three Months Ended June 30, |  | Nine Months Ended June 30,
(in thousands) | 2019 |  | 2018 |  | 2019 |  | 2018
Compensation expense |  |  |  |  |  |  |
Stock options | $ | 719 |  |  | $ | 1,815 |  |  | $ | 3,073 |  |  | $ | 5,887 |
Restricted stock | 6,771 |  |  | 6,111 |  |  | 19,374 |  |  | 17,585 |
Performance share units | 1,388 |  |  | — |  |  | 3,020 |  |  | — |
| $ | 8,878 |  |  | $ | 7,926 |  |  | $ | 25,467 |  |  | $ | 23,472 |
Stock Options A summary of stock option activity under all existing long-term incentive plans for the three and nine months ended June 30, 2019 is presented in the following tables:
| Three Months Ended June 30, 2019
(in thousands, except per share amounts and years) | Shares |  | Weighted Average Exercise Price |  | Weighted Average Remaining Contractual Term in Years |  | Aggregate Intrinsic Value
Outstanding at April 1, 2019 | 3,292 |  |  | $ | 60.77 |  |  |  |  |
Exercised | (15 | ) |  | 42.67 |  |  |  |  |
Forfeited/Expired | (14 | ) |  | 62.24 |  |  |  |  |
Outstanding at June 30, 2019 | 3,263 |  |  | $ | 60.85 |  |  | 5.42 |  | $ | 3,158 |
Vested and expected to vest at June 30, 2019 | 3,263 |  |  | $ | 60.85 |  |  | 5.42 |  | $ | 3,158 |
Exercisable at June 30, 2019 | 2,505 |  |  | $ | 60.37 |  |  | 4.69 |  | $ | 3,158 |
| Nine Months Ended June 30, 2019
(in thousands, except per share amounts) | Shares |  | Weighted Average Exercise Price
Outstanding at October 1, 2018 | 3,499 |  |  | $ | 58.62 |
Exercised | (213 | ) |  | 24.21 |
Forfeited | (23 | ) |  | 60.77 |
Outstanding at June 30, 2019 | 3,263 |  |  | $ | 60.85 |
The total intrinsic value of options exercised during the three and nine months ended June 30, 2019 was $0.3 million and $7.9 million, respectively. As of June 30, 2019, the unrecognized compensation cost related to stock options was $3.9 million, which is expected to be recognized over a weighted-average period of 2.1 years. Restricted Stock Restricted stock awards consist of our common stock and are time-vested over four years. We recognize compensation expense on a straight-line basis over the vesting period. The fair value of restricted stock awards is determined based on the closing price of our shares on the grant date. As of June 30, 2019, there was $41.8 million of total unrecognized compensation cost related to unvested restricted stock awards. That cost is expected to be recognized over a weighted-average period of 2.4 years. A summary of the status of our restricted stock awards as of June 30, 2019 and changes in restricted stock outstanding during the nine months then ended is presented below:
| Nine Months Ended June 30, 2019
(in thousands, except per share amounts) | Shares |  | Weighted Average Grant Date Fair Value per Share
Outstanding at October 1, 2018 | 1,001 |  |  | $ | 63.74 |
Granted | 475 |  |  | 58.45 |
Vested (1) | (369 | ) |  | 64.32 |
Forfeited | (17 | ) |  | 61.01 |
Outstanding at June 30, 2019 | 1,090 |  |  | $ | 61.28 |
(1) | The number of restricted stock awards vested includes shares that we withheld on behalf of our employees to satisfy the statutory tax withholding requirements.
Performance Share Units We have made awards to certain employees that are subject to market-based performance conditions ("performance share units"). Subject to the terms and conditions set forth in the applicable performance share unit award agreements and the 2016 Plan, grants of performance share units are subject to a vesting period of three years (the “Vesting Period”) that is dependent on the achievement of certain performance goals. Such performance share unit awards consist of two separate components. Performance share units that comprise the first component are subject to a three-year performance cycle. Performance share units that comprise the second component are further divided into three separate tranches, each of which is subject to a separate one-year performance cycle within the full three-year performance cycle. The vesting of the performance share units is generally dependent on (i) the achievement of the Company’s total shareholder return (“TSR”) performance goals relative to the TSR achievement of a peer group of companies (the “Peer Group”) over the applicable performance cycle, and (ii) the continued employment of the recipient of the performance share unit award throughout the Vesting Period. At the end of the Vesting Period, recipients receive dividend equivalents, if any, with respect to the number of vested performance share units. The vesting of units ranges from zero to 200% of the units granted depending on the Company’s TSR relative to the TSR of the Peer Group on the vesting date. The grant date fair value of performance share units was determined through use of the Monte Carlo simulation method. The Monte Carlo simulation method requires the use of highly subjective assumptions. Our key assumptions in the method include the price and the expected volatility of our stock and our self-determined Peer Group companies’ stock, risk free rate of return, dividend yields and cross-correlations between our and our self-determined Peer Group companies. As of June 30, 2019, there was $6.1 million of unrecognized compensation cost related to unvested performance share unit awards. That cost is expected to be recognized over a weighted-average period of 1.9 years. A summary of the status of our performance share units as of June 30, 2019 and changes in performance share units outstanding during the nine months then ended is presented below:
| Nine Months Ended June 30, 2019
(in thousands, except per share amounts) | Shares |  | Weighted Average Grant Date Fair Value per Share
Outstanding at October 1, 2018 | — |  |  | $ | — |
Granted | 145 |  |  | 62.66 |
Outstanding at June 30, 2019 | 145 |  |  | $ | 62.66 |

X
- Definition The entire disclosure for share-based payment arrangement. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 718 -URI http://asc.fasb.org/topic&trid=2228938 + Details
Name: | us-gaap_DisclosureOfCompensationRelatedCostsShareBasedPaymentsTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- References No definition available. + Details
Name: | us-gaap_DisclosureOfCompensationRelatedCostsSharebasedPaymentsAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration