Options granted to employees vest over four years and the Company recognizes compensation expense on a straight-line basis over the vesting period of the options. At December 31, 2014, there was $1.2 million of total unrecognized compensation expense related to nonvested stock options. This expense is expected to be recognized over a weighted average of 0.8 years. On October 28, 2013 and 2014 pursuant to the 2004 Plan, the Company awarded officers, directors and key employees restricted stock awards (“RSA”), which is an award of common stock subject to time vesting. In May 2012, the Board of Directors amended the 2004 Plan to include non-employee directors as eligible for restricted stock awards. RSAs issued under this plan are restricted as to transference, sale and other disposition. These RSAs vest ratably over a three year period. The RSAs may also vest in case of a change of control. Upon termination, whether voluntary or involuntary, the RSAs that have not vested will be returned to the Company resulting in stock forfeitures. The fair market value of the stock on the date of grant is amortized and charged to selling, general and administrative expense over the stipulated time period over which the RSAs vest on a straight-line basis, net of estimated forfeitures. The Company’s RSA activity and related information is presented below: Restricted stock awards compensation expense for the year ended December 31, 2014 totaled $6.3 million and $3.9 million for 2013 and $1.7 million for 2012. For 2014, total income tax benefit recognized in net income for restricted stock awards was $2.2 million. As of December 31, 2014, there was $13.7 million of total unrecognized compensation cost related to nonvested RSAs, which is expected to be recognized over a weighted average period of 1.6 years. There were 15,400 anti-dilutive restricted shares on December 31, 2014. On October 28, 2014 and 2013, the Company awarded 45,729 and 31,707 performance unit awards (“Performance Units”) pursuant to the 2004 Plan to officers and key employees. The Performance Units were valued based on a Monte Carlo simulation at $126.84 for 2014 grants and $138.31 for the 2013 grants, approximately 139.4% and 118.4%, respectively, of the grant share price. Under the plan, participants may earn from 0% to 200% of their target award based upon the Company’s relative total share return (“TSR”) in comparison to the 15 component companies of the Philadelphia Oil Service Index (“OSX index”). The TSR is calculated over a three year period from October 1, 2013 and 2014 to September 30, 2016 and 2017 and assumes reinvestment of dividends for companies within the index that pay dividends, which Dril-Quip does not. Assumptions used in the Monte Carlo simulation are as follows: 62 2013 2014 Grant date ............... October 28, 2013 October 28, 2014 Performance period ........ October 1, 2013 to September 30, 2016 October 1, 2014 to September 30, 2017 Volatility ................ 34.4% 27.8% Risk-free interest rate ...... 0.569% 0.8081% Grant date price ........... $116.83 $91.02 RSA Number of Shares Weighted Average Grant Date Fair Value Per Share Nonvested balance at December 31, 2013 ........... 148,753 $90.75 Granted ...................................... 86,476 91.02 Vested ....................................... (71,925) 83.92 Forfeited ..................................... (3,150) 99.81 Nonvested balance at December 31, 2014 ........... 160,154 $93.78 Performance Unit Awards Restricted Stock Awards