Share-based Compensation Plans
 9 Months Ended
Sep. 30, 2012
Share-based compensation plans [Abstract]  
Share-based compensation plans

Note 5 – Share-based compensation plans

We have share-based compensation plans to retain employees and nonemployee directors and to more closely align their interests with those of our shareholders.

 

The 2005 Equity Incentive Plan (the “2005 Plan”) permits grants of stock options, restricted stock, stock appreciation rights, performance stock and other share-based awards to employees.

 

We provide share-based awards to directors through the Non-Employee Directors' Equity Plan (the “Directors' Plan”).

 

The fair value of the options granted during the 2012 and 2011 periods was calculated using the following estimated weighted-average assumptions:

 

     Three Months Nine Months 
     Ended September 30, Ended September 30, 
 Options Granted2012 2011 2012 2011 
                     
 Number of shares underlying options, in thousands     182    290    389    290 
 Weighted-average exercise price per share $   22.56    31.47    22.47    31.47 
                     
 Assumptions used to estimate fair value                 
  Expected dividend yield (a):                 
   Weighted-average    1.8%    1.3%    1.8%    1.3% 
   Range    1.8%    1.3%    1.8%    1.3% 
  Expected volatility (b):                 
   Weighted-average     40%    36%    40%    36% 
   Range    40%  36%– 37%    40%  36%– 37% 
  Risk-free interest rate (c):                 
   Weighted-average     0.6%    1.2%    0.7%    1.2% 
   Range  0.4%– 0.8%  0.5%– 1.9%  0.4%– 0.9%  0.5%– 1.9% 
  Expected term in years (d):                 
   Weighted-average     4.3    3.8    4.3    3.8 
   Range  3.3– 5.3  1.9– 5.3  3.3– 5.3  1.9– 5.3 
                     
 Weighted-average fair value estimates at grant date:                 
  In millions$   1.2    2.4    2.5    2.4 
  Fair value per share$   6.31    8.17    6.30    8.17 
                     

  • The expected dividend yield is the calculated yield on Brink's common stock at the time of the grant.
  • The expected volatility was estimated after reviewing the historical volatility of our stock using daily close prices.
  • The risk-free interest rate was based on U.S. Treasury debt yields at the time of the grant.
  • The expected term of the options was based on our historical option exercise, expiration and post-vesting cancellation behaviors.

 

 Nonvested Share Activity        
  Number of Shares Weighted-Average  
  2005 Directors’    Grant-Date  
 (in thousands of shares, except per share amounts)Plan Plan Total Fair Value (a) 
          
 Balance as of December 31, 2011 299.6  15.8  315.4$ 25.99 
 Granted 315.1  23.0  338.1  22.13 
 Cancelled awards (13.5)  -  (13.5)  24.85 
 Vested (184.9)  (15.8)  (200.7)  25.69 
 Balance as of September 30, 2012 416.3  23.0  439.3$ 23.20 
          

  • Fair value is measured at the date of grant based on the average of the high and low per share quoted sales price of Brink's common stock, adjusted for a discount on units that do not receive or accrue dividends.