SHARE-BASED COMPENSATION

6 Months Ended

Jun. 30, 2015

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

In May 2014, shareholders approved the Company’s 2014 Omnibus Incentive Plan (the “2014 Plan”) which replaced the Company’s 2011 Omnibus Incentive Plan (the “2011 Plan”) for future equity awards granted by the Company. The Company transferred the common shares available under the 2011 Plan to the 2014 Plan. The maximum number of common shares that may be issued to participants under the 2014 Plan is equal to 18,000,000 common shares, plus the number of common shares under the 2011 Plan reserved but unissued and not underlying outstanding awards, plus the number of common shares becoming available for reuse after awards are terminated, forfeited, cancelled, exchanged or surrendered under the 2011 Plan and the Company’s 2007 Equity Compensation Plan. The Company registered, in the aggregate, 20,000,000 common shares of common stock for issuance under the 2014 Plan. Approximately 14,458,169 shares were available for future grants as of June 30, 2015. The Company uses reserved and unissued common shares to satisfy its obligation under its share-based compensation plans.

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 six-month periods ended June 30, 2015 and 2014:



	Three Months Ended June 30,				Six Months Ended June 30,
	2015		2014		2015		2014
Stock options	$	3.5	$	4.2	$	7.4	$	9.3
RSUs	22.4		11.4		53.5		31.1
Share-based compensation expense	$	25.9	$	15.6	$	60.9	$	40.4

Research and development expenses	$	1.5	$	1.4	$	3.0	$	2.8
Selling, general and administrative expenses	24.4		14.2		57.9		37.6
Share-based compensation expense	$	25.9	$	15.6	$	60.9	$	40.4

In the six-month periods ended June 30, 2015 and 2014, the Company granted approximately 97,000 stock options with a weighted-average exercise price of $201.70 per option and approximately 261,000 stock options with a weighted-average exercise price of $117.83 per option, respectively. The weighted-average fair values of all stock options granted to employees in the six-month periods ended June 30, 2015 and 2014 were $66.81 and $62.15, respectively.

In the six-month periods ended June 30, 2015 and 2014, the Company granted approximately 45,000 time-based RSUs with a weighted-average grant date fair value of $224.45 per RSU and approximately 91,000 time-based RSUs with a weighted-average grant date fair value of $135.42 per RSU, respectively.

In the six-month periods ended June 30, 2015 and 2014, the Company granted approximately 693,000 performance-based RSUs with a weighted-average grant date fair value of $310.56 per RSU and approximately 410,000 performance-based RSUs with a weighted-average grant date fair value of $209.72 per RSU, respectively.

On June 30, 2015, an executive terminated his employment and has subsequently entered into a consulting service agreement with the Company through January 2016. As a result, the outstanding awards held by the executive were modified to allow the recipient to continue vesting in those awards as service is rendered. Share-based compensation expense previously recognized of $6 million related to the original awards was reversed in the second quarter of 2015 when such awards were deemed improbable of vesting. The modified awards will be re-measured at fair value, at each reporting period, until a performance commitment is reached or the performance is complete. The value of the modified awards will be recognized as expense over the requisite service period.

As of June 30, 2015, the total remaining unrecognized compensation expense related to non-vested stock options, time-based RSUs and performance-based RSUs amounted to $365 million, in the aggregate, which will be amortized over a weighted-average period of 3.42 years.