Share-based Compensation Plans

9 Months Ended

Sep. 30, 2012

Share-based compensation plans [Abstract]

Share-based compensation plans

Note 5 – Share-based compensation plans

We have share-based compensation plans to retain employees and nonemployee directors and to more closely align their interests with those of our shareholders.

The 2005 Equity Incentive Plan (the “2005 Plan”) permits grants of stock options, restricted stock, stock appreciation rights, performance stock and other share-based awards to employees.

We provide share-based awards to directors through the Non-Employee Directors' Equity Plan (the “Directors' Plan”).

The fair value of the options granted during the 2012 and 2011 periods was calculated using the following estimated weighted-average assumptions:

				Three Months						Nine Months
				Ended September 30,						Ended September 30,
Options Granted			2012				2011			2012			2011
Number of shares underlying options, in thousands						182			290			389			290
Weighted-average exercise price per share			$			22.56			31.47			22.47			31.47
Assumptions used to estimate fair value
	Expected dividend yield (a):
		Weighted-average				1.8%			1.3%			1.8%			1.3%
		Range				1.8%			1.3%			1.8%			1.3%
	Expected volatility (b):
		Weighted-average				40%			36%			40%			36%
		Range				40%	36%	–	37%			40%	36%	–	37%
	Risk-free interest rate (c):
		Weighted-average				0.6%			1.2%			0.7%			1.2%
		Range		0.4%	–	0.8%	0.5%	–	1.9%	0.4%	–	0.9%	0.5%	–	1.9%
	Expected term in years (d):
		Weighted-average				4.3			3.8			4.3			3.8
		Range		3.3	–	5.3	1.9	–	5.3	3.3	–	5.3	1.9	–	5.3
Weighted-average fair value estimates at grant date:
	In millions		$			1.2			2.4			2.5			2.4
	Fair value per share		$			6.31			8.17			6.30			8.17

• The expected dividend yield is the calculated yield on Brink's common stock at the time of the grant.
• The expected volatility was estimated after reviewing the historical volatility of our stock using daily close prices.
• The risk-free interest rate was based on U.S. Treasury debt yields at the time of the grant.
• The expected term of the options was based on our historical option exercise, expiration and post-vesting cancellation behaviors.

Nonvested Share Activity
	Number of Shares				Weighted-Average
	2005	Directors’			Grant-Date
(in thousands of shares, except per share amounts)	Plan	Plan	Total		Fair Value (a)
Balance as of December 31, 2011	299.6	15.8	315.4	$	25.99
Granted	315.1	23.0	338.1		22.13
Cancelled awards	(13.5)	-	(13.5)		24.85
Vested	(184.9)	(15.8)	(200.7)		25.69
Balance as of September 30, 2012	416.3	23.0	439.3	$	23.20

• Fair value is measured at the date of grant based on the average of the high and low per share quoted sales price of Brink's common stock, adjusted for a discount on units that do not receive or accrue dividends.