SEC Filings

10-K
RANGE RESOURCES CORP filed this Form 10-K on 02/22/2017
Entire Document
 

 

The following table shows information with respect to SARs outstanding and exercisable at December 31, 2016:

 

 

Outstanding

 

 

Exercisable

 

Range of Exercise Prices

 

Shares

 

 

Weighted
Average
Remaining Contractual Life (in years)

 

 

Weighted Average Exercise Price

 

 

Shares

 

 

Weighted Average Exercise Price

 

$ 40.00–$ 49.99

 

 

10,108

  

 

 

0.04

  

 

$

49.18

  

 

 

10,108

  

 

$

49.18

  

50.00–59.99

 

 

  

 

 

  

 

 

  

 

 

  

 

 

  

60.00–69.99

 

 

578,064

  

 

 

0.36

  

 

 

64.23

  

 

 

578,064

  

 

 

64.23

  

70.00–79.99

 

 

413,528

 

 

 

1.28

 

 

 

76.29

 

 

 

413,528

 

 

 

76.29

 

80.00–81.15

 

 

1,900

  

 

 

1.69

  

 

 

81.15

  

 

 

1,900

  

 

 

81.15

  

Total

 

 

1,003,600

  

 

 

0.74

  

 

$

69.08

  

 

 

1,003,600

  

 

$

69.08

  

The weighted average grant date fair value of these SARs, based on our Black-Scholes-Merton assumptions, is shown below:

 

 

2014

 

Weighted average exercise price per share

 

$

81.74

  

Expected annual dividend yield

 

 

0.20

Expected life in years

 

 

4.3

 

Expected volatility

 

 

33

Risk-free interest rate

 

 

1.4

%

Weighted average grant date fair value per share

 

$

23.17

 

The expected dividend yield is based on the current annual dividend at the time of grant. The expected life is based on the historical exercise activity. The expected volatility factors are based on a combination of both the historical volatilities of the stock and implied volatility of traded options on our common stock. The risk-free interest rate is based on the U.S. Treasury yield curve in effect at the time of grant for periods commensurate with the expected terms of the options.

The total intrinsic value (the difference in value between exercise and market price at the time of grant) of SARs exercised during the year ended December 31, 2015 was $5.4 million compared to $27.1 million in 2014. There were no SARs exercised in 2016. As of December 31, 2016, there was no aggregate intrinsic value for any of the awards exercisable or awards outstanding. The weighted average remaining contractual life of awards exercisable was less than one year. As of December 31, 2016, the number of fully vested awards and the awards expected to vest was 1.0 million shares. The weighted average exercise price and weighted average remaining contractual life of these awards were $69.08 and 0.7 years. As of December 31, 2016, there was no unrecognized compensation cost related to the awards.

401(k) Plan

We maintain a 401(k) benefit plan that allows employees to contribute up to 75% of their salary (subject to Internal Revenue Service limitations) on a pretax basis. We match up to 6% of salary in cash and vesting of those contributions is immediate. In 2016, we contributed $4.7 million to the 401(k) Plan compared to $6.1 million in 2015 and $5.8 million in 2014. Employees have a variety of investment options in the 401(k) benefit plan.

Deferred Compensation Plan

Our deferred compensation plan gives directors, officers and key employees the ability to defer all or a portion of their salaries and bonuses and invest in Range common stock or make other investments at the individual’s discretion. Range provides a partial matching contribution which vests over three years. The assets of the plans are held in a grantor trust, which we refer to as the Rabbi Trust, and are therefore available to satisfy the claims of our creditors in the event of bankruptcy or insolvency. Our stock held in the Rabbi Trust is treated as a liability award as employees are allowed to take withdrawals from the Rabbi Trust either in cash or in Range stock. The liability for the vested portion of the stock held in the Rabbi Trust is reflected in the deferred compensation liability in the accompanying consolidated balance sheets and is adjusted to fair value each reporting period by a charge or credit to deferred compensation plan expense on our consolidated statements of operations. The assets of the Rabbi Trust, other than our common stock, are invested in marketable securities and reported at their market value in other assets in the accompanying consolidated balance sheets. The deferred compensation liability reflects the vested market value of the marketable securities and Range stock held in the Rabbi Trust. Changes in the market value of the marketable securities and changes in the fair value of the deferred compensation plan liability are charged or credited to deferred compensation plan expense each quarter. We recorded mark-to-market loss of $19.2

F-38