For the three months ended June 30, 2013, we incurred share-based compensation costs of $17 million (2012: $33 million) and recorded associated tax benefits of $3 million (2012: $3 million). For the six months ended June 30, 2013, we incurred share-based compensation costs of $31 million (2012: $45 million) and recorded tax benefits thereon of $6 million (2012: $5 million).

During the second quarter of 2012, the transition in our senior leadership resulted in accelerated and incremental share-based compensation expenses totaling $20 million. The retirement of one senior leader resulted in the modification of that leader's outstanding restricted stock awards to eliminate the previously existing service condition. The termination without cause of another senior officer led to the early satisfaction of employment obligations and resulted in the service condition associated with that officer's outstanding restricted stock awards being fully satisfied.

The fair value of shares vested during the six months ended June 30, 2013 was $67 million (2012: $40 million). At June 30, 2013 there were $124 million of unrecognized share-based compensation costs, which are expected to be recognized over the weighted average period of 3.0 years.

Awards to settle in shares

The following table provides a reconciliation of the beginning and ending balance of nonvested restricted stock (including restricted stock units) for the six months ended June 30, 2013:



	Performance-based Stock Awards			Service-based Stock Awards
	Number of Restricted Stock	Weighted Average Grant Date Fair Value		Number of Restricted Stock		Weighted Average Grant Date Fair Value

Nonvested restricted stock - beginning of period	250	$	34.42	4,429		$	32.48
Granted	—	—		953		39.20
Vested	—	—		(1,688	)	32.03
Forfeited	—	—		(82	)	33.78
Nonvested restricted stock - end of period	250	$	34.42	3,612		$	34.52

Cash-settled awards

During 2013 we also granted 793,500 restricted stock units that will settle in cash rather than shares when the awards ultimately vest. At June 30, 2013, the corresponding liability for cash-settled units, included in other liabilities on the Consolidated Balance Sheet, was $4 million (2012: nil).