SHARE-BASED COMPENSATION

9 Months Ended

Sep. 30, 2015

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

For the three months ended September 30, 2015, we incurred share-based compensation costs of $11 million (2014: $18 million) and recorded associated tax benefits of $3 million (2014: $4 million). For the nine months ended September 30, 2015, we incurred share-based compensation costs of $41 million (2014: $54 million) and recorded associated tax benefits of $11 million (2014: $10 million).

The fair value of shares vested during the nine months ended September 30, 2015 was $73 million (2014: $66 million). At September 30, 2015 there were $107 million of unrecognized share-based compensation costs, which are expected to be recognized over the weighted average period of 2.3 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 nine months ended September 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	—		—		(1,131	)	36.35
Forfeited	(250	)	34.42		(249	)	43.07
Nonvested restricted stock - end of period	201		$	49.24	1,944		$	43.21

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 September 30, 2015, the corresponding liability for cash-settled units, included in other liabilities on the Consolidated Balance Sheets, was $23 million (2014: $14 million).