Share-Based Compensation Plans

6 Months Ended

Jun. 30, 2015

Disclosure of Compensation Related Costs, Share-based Payments [Abstract]

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,
	2015		2014		2015		2014
Restricted share units ("RSUs")	$	44	$	43	$	109	$	103
Performance share awards ("PSAs")	28		28		49		67
Share options	—		—		—		—
Employee share purchase plans	2		2		6		5
Total share-based compensation expense	$	74	$	73	$	164	$	175

Restricted Share Units

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



	Six months ended June 30,
	2015				2014
	Shares		Fair Value (1)		Shares		Fair Value (1)
Non-vested at beginning of period	8,381		$	63	9,759		$	51
Granted	2,144		98		2,498		84
Vested	(3,037	)	58		(3,320	)	49
Forfeited	(130	)	67		(221	)	54
Non-vested at end of period	7,358		76		8,716		61

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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 cumulative 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, 2015 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, 2015 and the years ended December 31, 2014 and 2013, respectively, is as follows (shares in thousands, dollars in millions, except fair value):



	2015		2014		2013
Target PSAs granted during period	993		816		1,135
Weighted average fair value per share at date of grant	$	96	$	81	$	58
Number of shares that would be issued based on current performance levels	992		1,201		2,197
Unamortized expense, based on current performance levels	$	85	$	52	$	23

Share Options

The Company did not grant any share options during either the six months ended June 30, 2015 or the six months ended June 30, 2014.

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,
	2015				2014
	Shares		Weighted- Average Exercise Price		Shares		Weighted- Average Exercise Price
Beginning outstanding	2,300		$	32	3,462		$	32
Granted	—		—		—		—
Exercised	(1,388	)	27		(839	)	32
Forfeited and expired	(13	)	39		(3	)	37
Outstanding at end of period	899		39		2,620		32
Exercisable at end of period	899		39		2,572		32

The weighted average remaining contractual life, in years, of outstanding options was 2.7 years and 1.9 years at June 30, 2015 and 2014, 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 $99.68 as of June 30, 2015, which would have been received by the option holders had those option holders exercised their options as of that date. At June 30, 2015, the aggregate intrinsic value of options outstanding, all of which were exercisable, was $54 million.

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



	Three months ended June 30,				Six months ended June 30,
	2015		2014		2015		2014
Aggregate intrinsic value of stock options exercised	$	6	$	24	$	100	$	45
Cash received from the exercise of stock options	4		13		38		27
Tax benefit realized from the exercise of stock options	1		6		35		12

Unamortized deferred compensation expense, which includes both options and awards, amounted to $455 million as of June 30, 2015, with a remaining weighted-average amortization period of approximately 2.2 years.