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Incentive Plans | 3 Months Ended
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Mar. 31, 2021
Share-based Payment Arrangement [Abstract] |
Incentive Plans | Incentive Plans 2013 Long-Term Incentive Plan Effective August 30, 2013, certain of our employees participate in the Murphy USA 2013 Long-Term Incentive Plan which was subsequently amended and restated effective as of February 8, 2017 (the “MUSA 2013 Plan”). The MUSA 2013 Plan authorizes the Executive Compensation Committee of our Board of Directors (“the Committee”) to grant non-qualified or incentive stock options, stock appreciation rights, stock awards (including restricted stock and restricted stock unit awards), cash awards, and performance awards to our employees. No more than 5.5 million shares of MUSA common stock may be delivered under the MUSA 2013 Plan and no more than 1 million shares of common stock may be awarded to any one employee, subject to adjustment for changes in capitalization. The maximum cash amount payable pursuant to any “performance-based” award to any participant in any calendar year is $5.0 million. STOCK OPTIONS – The Committee fixes the option price of each option granted at no less than fair market value (FMV) on the date of the grant and fixes the option term at no more than 7 years from such date. In February 2021, the Committee granted nonqualified stock options to certain employees of the Company. The Black-Scholes valuation for these awards was $32.00 per option.
Assumptions used to value awards: |  |
Dividend yield |  | 0.79 | %
Expected volatility |  | 32.3 | %
Risk-free interest rate |  | 0.4 | %
Expected life (years) |  | 4.6
Stock price at valuation date |  | $ | 126.00
Changes in options outstanding for Company employees during the period from December 31, 2020 to March 31, 2021 are presented in the following table:
Options | Number of Shares |  | Weighted Average Exercise Price |  | Weighted Average Remaining Contractual Term (Years) |  | Aggregate Intrinsic Value (Millions of Dollars)
Outstanding at 12/31/2020 | 322,700 |  |  | $ | 79.60 |  |  |  |  |
Granted | 81,300 |  |  | $ | 126.00 |  |  |  |  |
Outstanding at 3/31/2021 | 404,000 |  |  | $ | 88.94 |  |  | 4.9 |  | $ | 22.5 |
Exercisable at 3/31/2021 | 194,200 |  |  | $ | 69.92 |  |  | 3.6 |  | $ | 14.5 |
RESTRICTED STOCK UNITS (MUSA 2013 Plan) – The Committee has granted time based restricted stock units (RSUs) as part of the compensation plan for its executives and certain other employees since its inception. The awards granted in the current year were under the MUSA 2013 Plan, are valued at the grant date fair value, and vest over 3 years. Changes in restricted stock units outstanding for Company employees during the period from December 31, 2020 to March 31, 2021 are presented in the following table:
Employee RSUs | Number of units |  | Weighted Average Grant Date Fair Value |  | Total Fair Value (Millions of Dollars)
Outstanding at 12/31/2020 | 182,795 |  |  | $ | 77.38 |  |  |
Granted | 55,074 |  |  | $ | 132.63 |  |  |
Vested and issued | (45,917) |  |  | $ | 71.95 |  |  | $ | 6.6 |
Forfeited | (1,013) |  |  | $ | 80.06 |  |  |
Outstanding at 3/31/2021 | 190,939 |  |  | $ | 94.61 |  |  | $ | 27.6 |
PERFORMANCE-BASED RESTRICTED STOCK UNITS (MUSA 2013 Plan) – In February 2021, the Committee awarded performance-based restricted stock units (performance units) to certain employees. Half of the performance units vest based on a 3-year return on average capital employed (ROACE) calculation and the other half vest based on a 3-year total shareholder return (TSR) calculation that compares MUSA to a group of 18 peer companies. The portion of the awards that vest based on TSR qualify as a market condition and must be valued using a Monte Carlo valuation model. For the TSR portion of the awards, the fair value was determined to be $168.42 per unit. For the ROACE portion of the awards, the valuation will be based on the grant date fair value of $126.00 per unit and the number of awards will be periodically assessed to determine the probability of vesting. Changes in performance-based restricted stock units outstanding for Company employees during the period from December 31, 2020 to March 31, 2021 are presented in the following table:
Employee PSU's | Number of Units |  | Weighted Average Grant Date Fair Value |  | Total Fair Value (Millions of Dollars)
Outstanding at 12/31/2020 | 129,340 |  |  | $ | 97.01 |  |  |
Granted | 64,600 |  |  | $ | 145.91 |  |  |
Vested and issued | (58,302) |  |  | $ | 76.78 |  |  | $ | 7.3 |
Outstanding at 3/31/2021 | 135,638 |  |  | $ | 117.42 |  |  | $ | 19.6 |
2013 Stock Plan for Non-employee Directors Effective August 8, 2013, Murphy USA adopted the 2013 Murphy USA Stock Plan for Non-employee Directors (the “Directors Plan”). The directors for Murphy USA are compensated with a mixture of cash payments and equity-based awards. Awards under the Directors Plan may be in the form of restricted stock, restricted stock units, stock options, or a combination thereof. An aggregate of 500,000 shares of common stock shall be available for issuance of grants under the Directors Plan. RESTRICTED STOCK UNITS (Directors Plan) – The Committee has also granted time based RSUs to the non-employee directors of the Company as part of their overall compensation package for being a member of the Board of Directors. These awards typically vest at the end of three years. Changes in restricted stock units outstanding for Company non-employee directors during the period from December 31, 2020 to March 31, 2021 are presented in the following table:
Director RSU's | Number of Units |  | Weighted Average Grant Date Fair Value |  | Total Fair Value (Millions of Dollars)
Outstanding at 12/31/2020 | 31,004 |  |  | $ | 83.31 |  |  |
Granted | 8,692 |  |  | $ | 125.04 |  |  |
Vested and issued | (9,589) |  |  | $ | 69.37 |  |  | $ | 1.2 |
Outstanding at 3/31/2021 | 30,107 |  |  | $ | 99.79 |  |  | $ | 4.4 |
For the three months ended March 31, 2021 and 2020, share-based compensation was $3.6 million and $2.8 million, respectively.

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