Page 129

APACHE CORPORATION AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (Continued) Weighted Average GrantDate Fair Value(1)

Shares (In thousands)

Non-vested at January 1, 2015 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Granted . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Vested . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Forfeited or expired . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

602 (101)

Non-vested at December 31, 2015 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

501

(1)

$

66.63 66.63 66.63

The fair value of each conditional restricted stock unit award is estimated as of the date of grant using a Monte Carlo simulation with the following assumptions used for all grants made under the plan: (i) a three-year continuous risk-free interest rate; (ii) a constant volatility assumption based on the historical realized stock price volatility of the Company and the designated peer group; and (iii) the historical stock prices and expected dividends of the common stock of the Company and its designated peer group.

In January 2016, the Company’s Board of Directors approved the 2016 Performance Program, pursuant to the 2011 Plan, with terms similar to the 2015 Performance Program described above. Eligible employees received the initial conditional restricted stock unit totaling 855,263, with the ultimate number of restricted stock units to be awarded ranging from zero to a maximum of 1,710,526 units. The grant date fair value per award was $36.55. 11.

ACCUMULATED OTHER COMPREHENSIVE LOSS Components of accumulated other comprehensive loss include the following: For the Year Ended December 31, 2015 2014 2013 (In millions)

Currency translation adjustment(1) . . . . . . . . . . . . . . . . . . . . . . . $ Unrealized gain (loss) on derivatives (Note 3) . . . . . . . . . . . . . . Unfunded pension and postretirement benefit plan (Note 9) . . .

(109) (7)

$

(109) (7)

$

(109) 1 (7)

Accumulated other comprehensive loss . . . . . . . . . . . . . . . . . . .

(116)

$

(116)

$

(115)

(1)

12.

$

Currency translation adjustments resulting from translating the Canadian subsidiaries’ financial statements into U.S. dollar equivalents, prior to adoption of the U.S. dollar as their functional currency, were reported separately and accumulated in other comprehensive income (loss).

MAJOR CUSTOMERS

In 2015, 2014, and 2013, purchases by Royal Dutch Shell plc and its subsidiaries accounted for 11 percent, 19 percent, and 24 percent, respectively, of the Company’s worldwide oil and gas production revenues.

F-47

Apache 2015 Summary Annual Report  

Adapting to a changing environment

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