|RANGE RESOURCES CORP filed this Form 10-Q on 10/23/2018|
TSR Awards. TSR-PSUs granted are earned, or not earned, based on the comparative performance of Range’s common stock measured against a predetermined group of companies in the peer group over a three-year performance period. The fair value of the TSR-PSUs is estimated on the date of grant using a Monte Carlo simulation model which utilizes multiple input variables that determine the probability of satisfying the market condition stipulated in the award grant and calculates the fair value of the award. The fair value is recognized as stock-based compensation expense over the three year performance period. Expected volatilities utilized in the model were estimated using a combination of a historical period consistent with the remaining performance period of three years and option implied volatilities. The risk-free interest rate was based on the United States Treasury rate for a term commensurate with the life of the grant. The following assumptions were used to estimate the fair value of PSUs granted during first nine months 2018 and 2017:
The following is a summary of our non-vested TSR – PSUs award activities:
We recorded TSR-PSUs compensation expense of $6.1 million in first nine months 2018 compared to $9.7 million in the same period of 2017.
Information with respect to our SARs activities is summarized below.