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Stock-based Compensation (Tables)

12 Months Ended

Dec. 31, 2011

Company's Share-based Compensation Plans

The Company’s share-based compensation plans at December 31, 2011 follow:


Plan Name	Shares Authorized for Grant		Awards Outstanding		Shares Available for Grant
Patterson-UTI Energy, Inc. 2005 Long-Term Incentive Plan, as amended		15,250,000		6,293,495		4,399,951
Patterson-UTI Energy, Inc. Amended and Restated 1997 Long-Term Incentive Plan, as amended (“1997 Plan”)		—		1,983,300		—
Amended and Restated Patterson-UTI Energy, Inc. 2001 Long-Term Incentive Plan (“2001 Plan”)		—		35,800		—

Weighted-Average Assumptions Used to Estimate the 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, 2011, 2010 and 2009 follow:


	2011			2010			2009
Volatility		45.97	%		45.98	%		49.90	%
Expected term (in years)		5.00			5.00			4.00
Dividend yield		0.67	%		1.35	%		1.67	%
Risk-free interest rate		2.34	%		2.47	%		1.67	%

Stock Option Activity

Stock option activity for the year ended December 31, 2011 follows:


	Shares			Weighted-average exercise price
Outstanding at beginning of year		7,710,102		$	19.58
Granted		419,500		$	30.28
Exercised		(1,048,307	)	$	16.04
Cancelled		—		$	—
Expired		—		$	—

Outstanding at end of year		7,081,295		$	20.73

Exercisable at end of year		6,077,635		$	20.69

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, 2011, 2010 and 2009 follows:


	2011		2010		2009
Weighted-average grant date fair value of stock options granted (per share)	$	12.24	$	5.69	$	4.71
Grant date fair value of stock options vested during the year (in thousands)	$	5,639	$	5,553	$	6,973
Aggregate intrinsic value of stock options exercised (in thousands)	$	12,663	$	523	$	510

Restricted Stock Activity

Restricted stock activity for the year ended December 31, 2011 follows:


	Shares			Weighted- average Grant Date Fair Value
Non-vested restricted stock outstanding at beginning of year		1,114,051		$	16.05
Granted		782,300		$	30.46
Vested		(599,394	)	$	17.60
Forfeited		(83,158	)	$	22.58

Non-vested restricted stock outstanding at end of year		1,213,799		$	24.13

Restricted Stock Unit Activity

Restricted stock unit activity for the year ended December 31, 2011 follows:


	Shares			Weighted Average Grant Date Fair Value
Non-vested restricted stock units outstanding at beginning of year		17,834		$	19.73
Granted		10,000		$	30.63
Vested		(10,333	)	$	23.94
Forfeited		—		$	—

Non-vested restricted stock units outstanding at end of year		17,501		$	23.47

Employee Stock Option

Additional Information with Respect to Non-vested Shares

Additional information as of December 31, 2011 with respect to these non-vested options follows:


Aggregate intrinsic value		$3.3 million
Weighted-average remaining contractual term		8.56 years
Weighted-average remaining expected term		3.45 years
Weighted-average remaining vesting period		1.52 years
Unrecognized compensation cost		$6.7 million

Restricted Stock Awards

Additional Information with Respect to Non-vested Shares

Additional information as of December 31, 2011 with respect to these non-vested shares follows:


Aggregate intrinsic value		$22.6 million
Weighted-average remaining vesting period		1.90 years
Unrecognized compensation cost		$22.6 million