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SHARE-BASED COMPENSATION
 9 Months Ended
Sep. 30, 2013
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]  
SHARE-BASED COMPENSATION
SHARE-BASED COMPENSATION
The following table summarizes the components and classification of share-based compensation expense related to stock options and restricted share units (“RSUs”) for the three-month and nine-month periods ended September 30, 2013 and 2012:
 
Three Months Ended
September 30,
 
Nine Months Ended
September 30,
 
2013
 
2012
 
2013
 
2012
Stock options
$
4,579

 
$
4,901

 
$
12,731

 
$
16,977

RSUs
11,421

 
13,646

 
19,745

 
35,878

Share-based compensation expense
$
16,000

 
$
18,547

 
$
32,476

 
$
52,855

 
 
 
 
 
 
 
 
Research and development expenses
$
—

 
$
167

 
$
—

 
$
607

Selling, general and administrative expenses
16,000

 
18,380

 
32,476

 
52,248

Share-based compensation expense
$
16,000

 
$
18,547

 
$
32,476

 
$
52,855


In the second quarter of 2013, certain equity awards held by current non-management directors were modified from units settled in common shares to units settled in cash, which changed the classification from equity awards to liability awards. The resulting reduction in share-based compensation expense of $5.8 million was more than offset by incremental compensation expense of $21.3 million recognized in the second quarter of 2013, which represents the fair value of the awards settled in cash. As the modified awards were fully vested and paid out, no additional compensation expense will be recognized in subsequent periods.
The decrease in share-based compensation expense for the nine-month period ended September 30, 2013 was also driven by the impact of forfeitures and the accelerated vesting that was triggered in the prior year related to certain performance-based RSU awards.
In the nine-month periods ended September 30, 2013 and 2012, the Company granted approximately 912,000 stock options with a weighted-average exercise price of $84.51 per option and approximately 435,000 stock options with a weighted-average exercise price of $53.41 per option, respectively. The weighted-average fair values of all stock options granted to employees in the nine-month periods ended September 30, 2013 and 2012 were $26.10 and $19.10, respectively.
In the nine-month periods ended September 30, 2013 and 2012, the Company granted approximately 95,000 time-based RSUs with a weighted-average grant date fair value of $73.90 per RSU and approximately 220,000 time-based RSUs with a weighted-average grant date fair value of $50.44 per RSU, respectively.
In the nine-month period ended September 30, 2013 and 2012, the Company granted approximately 338,000 performance-based RSUs with a weighted-average grant date fair value of $125.04 per RSU and approximately 201,000 performance-based RSUs with a weighted-average grant date fair value of $70.52 per RSU, respectively.
As of September 30, 2013, the total remaining unrecognized compensation expense related to non-vested stock options, time-based RSUs and performance-based RSUs amounted to $106.4 million, in the aggregate, which will be amortized over a weighted-average period of 2.51 years.