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Share-Based Compensation
 6 Months Ended
Jun. 30, 2012
Share-based Compensation [Abstract]  
Share-Based Compensation
SHARE-BASED COMPENSATION
The company issues equity-settled share-based awards to certain employees, which are measured at fair value at the date of grant, in accordance with ASC Topic 718, “Compensation — Stock Compensation.” The fair value determined at the grant date is expensed, based on the company’s estimate of shares that will eventually vest, on a straight-line or accelerated basis over the vesting period. The company recognized total expenses of $67.0 million in the six months ended June 30, 2012 (six months ended June 30, 2011: $56.8 million) related to equity-settled share-based payment transactions.
Share Awards
Movements on share awards priced in U.S. dollars are detailed below:
 
Six months ended June 30, 2012
 
Six months ended June 30, 2011
Millions of shares, except fair values
Time-Vested
 
Performance-Vested
 
Weighted Average Grant Date Fair Value ($)
 
Time-Vested
 
Weighted Average Grant Date Fair Value ($)
Unvested at the beginning of period
17.3

 
—

 
20.34

 
17.4

 
17.25

Granted during the period
5.4

 
0.3

 
24.84

 
5.5

 
26.79

Forfeited during the period
(0.1
)
 
—

 
21.04

 
(0.2
)
 
19.17

Vested and distributed during the period
(5.2
)
 
—

 
18.75

 
(4.9
)
 
18.93

Unvested at the end of the period
17.4

 
0.3

 
22.26

 
17.8

 
20.21



Further details of the performance-vested awards granted in 2012 are included in the Compensation Discussion and Analysis section of the company's 2012 Proxy statement.
On December 4, 2007, in connection with the redomicile of the company from the U.K. to Bermuda, the company’s primary share listing moved from the London Stock Exchange to the New York Stock Exchange. Movements on share awards priced in Pounds Sterling, which were awarded prior to the move of the company’s primary share listing to the New York Stock Exchange, are detailed below:
 
Six months ended June 30, 2012
 
Six months ended June 30, 2011
Millions of shares, except fair values
Time-Vested
 
Weighted Average Grant Date Fair Value
(£ Sterling)
 
Time-Vested
 
Performance-Vested
 
Weighted Average Grant Date Fair Value
(£ Sterling)
Unvested at the beginning of period
0.6

 
11.25

 
3.3

 
0.1

 
11.80

Vested and distributed during the period
(0.3
)
 
9.66

 
(2.3
)
 
(0.1
)
 
11.94

Unvested at the end of the period
0.3

 
12.90

 
1.0

 
—

 
11.47



Share awards outstanding at June 30, 2012 had a weighted average remaining contractual life of 1.84 years. The market price of the company’s common stock at June 30, 2012 was $22.60.


Share Options
The company has not granted share option awards since 2005. All remaining outstanding share option awards were fully vested and were expensed by the company over the applicable vesting periods (the latest of which ended prior to December 31, 2008). At the time of their grants, the exercise prices of the share options were denominated in the company’s trading currency, which was the Pound Sterling. The exercise price remains in Pounds Sterling and was not changed to U.S. Dollars. Therefore, upon exercise of the share options, the Pound Sterling exercise price will be converted into U.S. Dollars using the spot foreign exchange rate in effect on the exercise date.
Changes in outstanding share option awards are as follows:
 
Six months ended June 30, 2012
 
Six months ended June 30, 2011
 
Options
(millions of shares)
 
Weighted Average
Exercise Price
(£ Sterling)
 
Options
(millions of shares)
 
Weighted Average
Exercise Price
(£ Sterling)
Outstanding at the beginning of the period
4.5

 
7.85

 
10.7

 
13.85

Forfeited during the period
(0.1
)
 
14.80

 
(0.5
)
 
24.40

Exercised during the period
(0.9
)
 
8.66

 
(0.7
)
 
8.53

Outstanding at the end of the period
3.5

 
7.36

 
9.5

 
13.58

Exercisable at the end of the period
3.5

 
7.36

 
9.5

 
13.58