Share-Based Compensation Plans

The following table summarizes share-based compensation expense recognized in the Condensed Consolidated Statements of Income in Compensation and benefits (in millions):



	Three months ended June 30,				Six months ended June 30,
	2014		2013		2014		2013
Restricted share units ("RSUs")	$	43	$	40	$	103	$	95
Performance share awards ("PSAs")	28		27		67		38
Share options	—		—		—		1
Employee share purchase plans	2		1		5		3
Total share-based compensation expense	$	73	$	68	$	175	$	137

Restricted Share Units

A summary of the status of the Company’s RSUs is as follows (shares in thousands):



	Six months ended June 30,
	2014				2013
	Shares		Fair Value (1)		Shares		Fair Value (1)
Non-vested at beginning of period	9,759		$	51	10,432		$	44
Granted	2,498		84		3,505		62
Vested	(3,320	)	49		(3,345	)	44
Forfeited	(221	)	54		(229	)	45
Non-vested at end of period	8,716		61		10,363		50

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(1)	Represents per share weighted average fair value of award at date of grant.

Performance Share Awards

The vesting of PSAs is contingent upon meeting a level of earnings per share performance over a three-year period. The performance conditions are not considered in the determination of the grant date fair value for these awards. The fair value of PSAs is based upon the market price of an Aon ordinary share at the date of grant. Compensation expense is recognized over the performance period based on management's estimate of the number of units expected to vest. Compensation expense is adjusted to reflect the actual number of shares issued at the end of the programs. The actual issue of shares may range from 0-200% of the target number of PSAs granted, based on the terms of the plan and level of achievement of the related performance target. Dividend equivalents are not paid on PSAs.

Information as of June 30, 2014 regarding the Company’s target PSAs granted and shares that would be issued at current performance levels for PSAs granted during the six months ended June 30, 2014 and the years ended December 31, 2013 and 2012, respectively, is as follows (shares in thousands, dollars in millions, except fair value):



	As of June 30, 2014		As of December 31, 2013		As of December 31, 2012
Target PSAs granted	816		1,135		1,369
Fair value (1)	$	81	$	58	$	47
Number of shares that would be issued based on current performance levels	812		2,230		2,657
Unamortized expense, based on current performance levels	$	59	$	70	$	22

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(1)	Represents per share weighted average fair value of award at date of grant.

Share Options

The Company did not grant any share options during either the six months ended June 30, 2014 or 2013.

A summary of the status of the Company’s share options and related information is as follows (shares in thousands):



	Six months ended June 30,
	2014				2013
	Shares		Weighted- Average Exercise Price		Shares		Weighted- Average Exercise Price
Beginning outstanding	3,462		$	32	5,611		$	32
Granted	—		—		—		—
Exercised	(839	)	32		(1,318	)	31
Forfeited and expired	(3	)	37		(2	)	33
Outstanding at end of period	2,620		32		4,291		33
Exercisable at end of period	2,572		32		4,063		32

The weighted average remaining contractual life, in years, of outstanding options was 1.9 years and 2.4 years at June 30, 2014 and 2013, respectively.

The aggregate intrinsic value represents the total pretax intrinsic value, based on options with an exercise price less than the Company’s closing share price of $90.09 as of June 30, 2014, which would have been received by the option holders had those option holders exercised their options as of that date. At June 30, 2014, the aggregate intrinsic value of options outstanding was $151 million, of which $149 million was exercisable.

Other information related to the Company’s share options is as follows (in millions):



	Three months ended June 30,				Six months ended June 30,
	2014		2013		2014		2013
Aggregate intrinsic value of stock options exercised	$	24	$	22	$	45	$	39
Cash received from the exercise of stock options	13		21		27		41
Tax benefit realized from the exercise of stock options	6		4		12		7

Unamortized deferred compensation expense, which includes both options and awards, amounted to $430 million as of June 30, 2014, with a remaining weighted-average amortization period of approximately 2.2 years.