Share-based compensation (Tables)
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12 Months Ended |
Dec. 31, 2014
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Disclosure of Compensation Related Costs, Share-based Payments [Abstract] |
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Schedule of pre-tax and after-tax share-based compensation expense |
The following table presents pre-tax and after-tax share-based compensation expense: | | | | | | | | | | | | | | Years Ended December 31 | | (in millions of U.S. dollars) | 2014 |
| | 2013 |
| | 2012 |
| Stock options and shares issued under ESPP: | | | | | | Pre-tax | $ | 28 |
| | $ | 24 |
| | $ | 22 |
| After-tax (1) | $ | 19 |
| | $ | 18 |
| | $ | 17 |
| Restricted stock: | | | | | | Pre-tax | $ | 128 |
| | $ | 153 |
| | $ | 109 |
| After-tax | $ | 75 |
| | $ | 89 |
| | $ | 64 |
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| | (1) | Excludes windfall tax benefit for share-based compensation recognized as a direct adjustment to Additional paid-in capital of $28 million, $36 million and $18 million for the years ended December 31, 2014, 2013 and 2012, respectively. |
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Schedule of the weighted-average model valuation assumptions |
| | | | | | | | | Years Ended December 31 | | | 2014 |
| 2013 |
| 2012 |
| Dividend yield | 2.7 | % | 2.4 | % | 2.7 | % | Expected volatility | 25.2 | % | 27.8 | % | 29.8 | % | Risk-free interest rate | 1.7 | % | 1.0 | % | 1.1 | % | Expected life | 5.8 years |
| 5.8 years |
| 5.8 years |
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Rollforward of the company's stock options |
The following table presents a roll-forward of ACE's stock options: | | | | | | | | | | | | | | | | (Intrinsic Value in millions of U.S. dollars) | Number of Options |
| | Weighted-Average Exercise Price |
| | Weighted-Average Fair Value |
| | Total Intrinsic Value |
| Options outstanding, December 31, 2011 | 10,579,507 |
| | $ | 49.78 |
| | | | | Granted | 1,462,103 |
| | $ | 73.36 |
| | $ | 15.58 |
| | | Exercised | (2,401,869 | ) | | $ | 42.50 |
| | | | $ | 78 |
| Forfeited | (190,082 | ) | | $ | 61.87 |
| | | | | Options outstanding, December 31, 2012 | 9,449,659 |
| | $ | 55.03 |
| | | | | Granted | 1,821,063 |
| | $ | 85.41 |
| | $ | 17.29 |
| | | Exercised | (1,658,671 | ) | | $ | 48.17 |
| | | | $ | 70 |
| Forfeited | (115,195 | ) | | $ | 72.50 |
| | | | | Options outstanding, December 31, 2013 | 9,496,856 |
| | $ | 61.84 |
| | | | | Granted | 1,782,903 |
| | $ | 96.77 |
| | $ | 18.00 |
| | | Exercised | (1,511,948 | ) | | $ | 54.84 |
| | | | $ | 73 |
| Forfeited | (143,825 | ) | | $ | 84.52 |
| | | | | Options outstanding, December 31, 2014 | 9,623,986 |
| | $ | 69.06 |
| | | | $ | 441 |
| Options exercisable, December 31, 2014 | 6,313,668 |
| | $ | 58.24 |
| | | | $ | 358 |
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Rollforward of the company's restricted stock |
The following table presents a roll-forward of our restricted stock awards. Included in the roll-forward below are 25,339 restricted stock awards, 20,969 restricted stock awards, and 25,669 restricted stock awards that were granted to non-management directors during the years ended December 31, 2014, 2013, and 2012, respectively: | | | | | | | | | Number of Restricted Stock |
| | Weighted-Average Grant-Date Fair Value |
| Unvested restricted stock, December 31, 2011 | 4,851,490 |
| | $ | 52.20 |
| Granted | 1,589,178 |
| | $ | 73.46 |
| Vested | (1,923,385 | ) | | $ | 52.71 |
| Forfeited | (262,436 | ) | | $ | 58.40 |
| Unvested restricted stock, December 31, 2012 | 4,254,847 |
| | $ | 59.53 |
| Granted | 1,544,485 |
| | $ | 86.07 |
| Vested | (1,951,494 | ) | | $ | 57.44 |
| Forfeited | (139,651 | ) | | $ | 67.72 |
| Unvested restricted stock, December 31, 2013 | 3,708,187 |
| | $ | 71.38 |
| Granted | 1,669,936 |
| | $ | 97.32 |
| Vested | (1,660,903 | ) | | $ | 70.01 |
| Forfeited | (145,012 | ) | | $ | 81.73 |
| Unvested restricted stock, December 31, 2014 | 3,572,208 |
| | $ | 83.72 |
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