SHARE-BASED COMPENSATION

6 Months Ended

Jun. 30, 2015

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

For the three months ended June 30, 2015, we incurred share-based compensation costs of $10 million (2014: $19 million) and recorded associated tax benefits of $4 million (2014: $3 million). For the six months ended June 30, 2015, we incurred share-based compensation costs of $29 million (2014: $37 million) and recorded associated tax benefits of $8 million (2014: $6 million).

The fair value of shares vested during the six months ended June 30, 2015 was $71 million (2014: $65 million). At June 30, 2015 there were $135 million of unrecognized share-based compensation costs, which are expected to be recognized over the weighted average period of 2.5 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, 2015:



	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	347		$	37.34	2,768		$	38.70
Granted	104		53.32		556		51.69
Vested	—		—		(1,109	)	36.38
Forfeited	(250	)	34.42		(29	)	42.29
Nonvested restricted stock - end of period	201		$	49.24	2,186		$	43.13

Cash-settled awards

During 2015 we also granted 486,508 restricted stock units that will settle in cash rather than shares when the awards ultimately vest; of which 18,659 restricted stock units are performance based and 467,849 restricted stock units are service based. At June 30, 2015, the corresponding liability for cash-settled units, included in other liabilities on the Consolidated Balance Sheet, was $20 million (2014: $9 million).