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Share-based Compensation (Tables)
 6 Months Ended 12 Months Ended
Jun. 30, 2013
Dec. 31, 2012
Restricted Stock Share Activity with Employees

Restricted share activity with employees and directors was as follows:

 

     Number of
Shares		     Fair
Value		  

Balance at December 31, 2011

      1,177,995      $ 21.48   

Awards granted

      52,915        24.36   

Awards earned

      (810,145 )      32.41   

Awards converted to Tronox Limited restricted shares in connection with the Transaction

      (420,765 )      16.99   
  

 

 

    

 

 

  

Balance at June 30, 2012

      —        $ —     
  

 

 

    

 

 

  

 

(1) Represents weighted average fair value. Liability awards are remeasured to fair value at each reporting date and upon vesting, while equity awards are presented at grant date fair value.

The following table summarizes restricted shares activity during the year ended December 31, 2012.

 

     Number of
Shares		     Fair
Value(1)		  

Balance at December 31, 2011

      1,177,995      $ 22.01   

Awards granted

      52,915        24.36   

Awards earned

      (810,145 )      24.30   

Awards converted to Tronox Limited restricted shares in connection with the Transaction

      (420,765 )      16.99   
  

 

 

    

 

 

  

Balance at December 31, 2012

      —       $ —    
  

 

 

    

 

 

  

 

(1) Represents the weighted-average grant-date fair value.
Activity for Company's Options

During the six months ended June 30, 2013, the Company granted options to employees to purchase Class A Shares, which have graded vesting provisions over a three year period. Options activity was as follows:

 

     Number of
Options		     Price (1)      Contractual
Life
Years (1)		      Intrinsic
Value(2)		  

Balance at December 31, 2012

      612,439      $ 24.81         

Options issued

      1,553,110        19.10         

Options exercised

      (50,000 )      22.00         

Options expired

      (32,822 )      25.65         

Options forfeited

      (18,204 )      20.40         
  

 

 

    

 

 

     

 

 

     

 

 

  

Outstanding at June 30, 2013

      2,064,523      $ 20.61         9.46       $ 2   
  

 

 

    

 

 

     

 

 

     

 

 

  

Outstanding and expected to vest at June 30, 2013

      1,801,008      $ 20.20         9.53       $ 2   
  

 

 

    

 

 

     

 

 

     

 

 

  

Exercisable at June 30, 2013

      165,012      $ 25.14         8.86       $ —     
  

 

 

    

 

 

     

 

 

     

 

 

  

 

(1) Represents weighted average exercise price and weighted average remaining contractual life, as applicable.
(2) Reflects aggregate intrinsic value based on the difference between the market price of the Company’s shares at June 30, 2013 and the options’ exercise price. The intrinsic value for shares exercised is based on the market value on the date of exercise.

During the six months ended June 30, 2012, the Company granted options to employees to purchase Class A Shares, which have graded vesting provisions over a three year period. Options activity was as follows:

 

     Number of
Options		      Price (1)      Contractual
Life
Years (1)		      Intrinsic
Value(2)		  

Balance at December 31, 2011

      —        $ —          

Options converted to Tronox Limited in connection with the Transaction

      517,330         24.56         

Options issued

      135,895         25.90         
  

 

 

     

 

 

     

 

 

     

 

 

  

Outstanding at June 30, 2012

      653,225       $ 24.84         9.68       $ 1   
  

 

 

     

 

 

     

 

 

     

 

 

  

Outstanding and expected to vest at June 30, 2012

      618,095       $ 24.86         9.68       $ 1   
  

 

 

     

 

 

     

 

 

     

 

 

  

Exercisable at June 30, 2012

      7,440       $ 24.60         9.52       $ —     
  

 

 

     

 

 

     

 

 

     

 

 

  

 

(1) Represents weighted average exercise price and weighted average remaining contractual life, as applicable.

 

(2) Reflects aggregate intrinsic value based on the difference between the market price of the Company’s stock at June 30, 2012 and the options’ exercise price.

 

The following table presents a summary of activity for the Tronox Incorporated options for the year ended December 31, 2012:

 

     Number of
Options		     Price(1)      Contractual
Life
Years(1)		      Intrinsic
Value(2)		  

Balance at December 31, 2011

      345,000      $ 22.00         9.95       $ 0.7   

Options issued

      172,330        29.69         9.87         —    

Options converted to Tronox Limited in connection with the Transaction

      (517,330 )      24.56         9.59         0.7   
  

 

 

    

 

 

     

 

 

     

 

 

  

Outstanding at December 31, 2012

      —       $ —          —        $ —    
  

 

 

    

 

 

     

 

 

     

 

 

  

 

(1) Represents weighted average exercise price and weighted average remaining contractual life, as applicable.
(2) Reflects aggregate intrinsic value based on the difference between the market price of the Company’s shares at December 31, 2012 and the options’ exercise price.
Assumptions Used in Calculating Options Granted

The Company ran the Black-Scholes option-pricing model using the following assumptions:

 

     February 25,
2013		     March 11,
2013		  

Number of options granted

      1,544,872        8,238   

Fair market value and exercise price (1)

    $ 19.09      $ 21.49   

Risk-free interest rate (2)

      1.04 %      1.19 % 

Expected dividend yield

      5.24 %      4.65 % 

Expected volatility

      56 %      56 % 

Maturity (years)

      10        10   

Expected term (years)

      6        6   

Per-unit fair value of options granted

    $ 6.28      $ 7.48   

 

(1) The adjusted closing price of Class A Shares, New York Stock Exchange symbol TROX, on the grant date.
(2) The risk-free interest rate was based on U.S. Treasury Strips available with maturity period consistent with expected life assumption.
     June 26,
2012		  

Number of options granted

      135,895   

Fair market value and exercise price (1)

    $ 25.90   

Risk-free interest rate (2)

      0.97 % 

Expected dividend yield

      3.86 % 

Expected volatility

      55 % 

Maturity (years)

      10   

Expected term (years)

      6   

Per-unit fair value of options granted

    $ 9.43   

 

(1) The adjusted closing price of Class A Shares, New York Stock Exchange symbol TROX, on the grant date.
(2) The risk-free interest rate was based on U.S. Treasury Strips available with maturity period consistent with expected life assumption.
     January 2,
2012		     June 6,
2012		  

Number of options granted

      22,330        150,000   

Fair market value and exercise price (1)

    $ 24.60      $ 30.45   

Risk-free interest rate (2)

      1.97 %      0.94 % 

Expected dividend yield

      0.0 %      0.0 % 

Expected volatility

      49 %      55 % 

Expected term (years)

      10        10   

Per-unit fair value of options granted

    $ 14.78      $ 15.64   

 

(3) The adjusted closing price of Class A Shares, New York Stock Exchange symbol TROX, on the grant date.
(4) The risk-free interest rate was based on U.S. Treasury Strips available with maturity period consistent with expected life assumption.
     2012  

Risk-free interest rate

      1.02 % 

Expected dividend yield

      4.84 % 

Expected volatility

      56 % 

Expected term (years)

      10   

Per-unit fair value of options granted

    $ 7.03   
 

  

 

 2012  

Risk-free interest rate

      0.87 % 

Expected dividend yield

      5.34 % 

Expected volatility

      56 % 

Expected term (years)

      10   

Per-unit fair value of options granted

    $ 6.07   
Equity-Settled Share-Based Payment Plan  

In accordance with ASC 718, the T-Bucks EPP is classified as an equity-settled shared-based payment plan.

 

     Number of
Shares		      Fair
Value(1)		  

Balance at December 31, 2011

      —          —    

Shares acquired by the Trust

      548,234       $ 25.79   
  

 

 

     

 

 

  

Balance at December 31, 2012

      548,234       $ 25.79   
  

 

 

     

 

 

  

Outstanding awards expected to vest

      548,234       $ 25.79   
  

 

 

     

 

 

  

 

(1) Represents the fair value on the date of purchase by the Trust.
Information about Restricted Stock Award Stock and Performance Award and Stock Option Activity  

The following table summarizes information about restricted stock award, performance award and option activity for the one month ended January 31, 2011:

 

     Restricted Stock Awards &
Stock Opportunity Grants		      Performance
Awards		     Options  

Restricted Shares

    Number of
Shares		     Fair
Value(1)		      Number Of
Units		     Number of
Options		     Price(2)      Contractual
Life (Years)(2)		      Intrinsic
Value(3)		  

Balance at December 31, 2010

      148,053      $ 4.92         2,689,150        1,152,408      $ 9.54         5.31       $ 9.54   

Awards vested/cancelled

      (148,053 )      —          (2,689,150 )      (1,152,408 )      —          —          —    
  

 

 

    

 

 

     

 

 

    

 

 

    

 

 

     

 

 

     

 

 

  

Balance at January 31, 2011

      —       $ —          —         —       $ —          —        $ —    
  

 

 

    

 

 

     

 

 

    

 

 

    

 

 

     

 

 

     

 

 

  

 

(1) Represents the weighted average grant date fair value.
(2) Represents weighted average exercise price and weighted average remaining contractual life, as applicable.
(3) Reflects aggregate intrinsic value based on the difference between the market price of the Company’s stock and the options’ exercise price.
Restricted Stock [Member]
    
Restricted Stock Share Activity with Employees

Restricted share activity for the six months ended June 30, 2013 was as follows:

 

     Number of
Shares		     Fair
Value(1)		  

Balance at December 31, 2012

      761,065      $ 20.62   

Awards granted

      780,640        20.96   

Awards earned

      (68,258 )      24.18   

Awards forfeited

      (15,245 )      23.86   
  

 

 

    

 

 

  

Balance at June 30, 2013

      1,458,202      $ 20.60   
  

 

 

    

 

 

  

Outstanding awards expected to vest

      1,422,910      $ 20.57   
  

 

 

    

 

 

  

 

(1) Represents the weighted-average grant-date fair value.

Restricted share activity for the six months ended June 30, 2012 was as follows:

 

     Number of
Shares		      Fair
Value(1)		  

Balance at December 31, 2011

      —          —    

Awards converted from Tronox Incorporated to Tronox Limited in connection with the Transaction

      420,765         16.99   

Awards granted

      160,835         27.39   
  

 

 

     

 

 

  

Balance at June 30, 2012

      581,600       $ 19.86   
  

 

 

     

 

 

  

Outstanding awards expected to vest

      574,716       $ 19.77   
  

 

 

     

 

 

  

 

(1) Represents the weighted-average grant-date fair value.

The following table summarizes restricted share activity for the year ended December 31, 2012.

 

     Number of
Shares		     Fair
Value(1)		  

Balance at December 31, 2011

      —       $ —    

Awards converted from Tronox Incorporated to Tronox Limited in connection with the Transaction

      420,765        16.99   

Awards granted

      376,495        24.97   

Awards earned

      (24,620 )      20.87   

Awards forfeited

      (11,575 )      29.32   
  

 

 

    

 

 

  

Balance at December 31, 2012

      761,065      $ 20.62   
  

 

 

    

 

 

  

Outstanding awards expected to vest

      754,162      $ 20.57   
  

 

 

    

 

 

  

 

(1) Represents the weighted-average grant-date fair value.
Stock Option [Member]
    
Activity for Company's Options

Tronox Incorporated options activity was as follows:

 

     Number of
Options		     Price (1)  

Balance at December 31, 2011

      345,000      $ 22.00   

Options issued

      172,330        29.69   

Options converted to Tronox Limited in connection with the Transaction

      (517,330 )      24.56   
  

 

 

    

 

 

  

Outstanding at June 30, 2012

      —        $ —     
  

 

 

    

 

 

  

 

(1) Represents weighted average exercise price.

The following table presents a summary of activity for the year ended December 31, 2012:

 

     Number of
Options		     Price(1)      Contractual
Life
Years(1)		      Intrinsic
Value(2)		  

Balance at December 31, 2011

      —       $ —          —        $ —    

Options converted to Tronox Limited in connection with the Transaction

      517,330        24.56         9.10         —    

Options issued

      247,904        23.83         9.62         —    

Options forfeited

      (159,880 )      22.55         —          —    

Options vested

      (76,595 )      22.25         —          —    
  

 

 

    

 

 

     

 

 

     

 

 

  

Outstanding at December 31, 2012

      528,759      $ 25.16         9.38       $     
  

 

 

    

 

 

     

 

 

     

 

 

  

Outstanding awards expected to vest

      491,416      $ 25.23         9.40         —    
  

 

 

    

 

 

     

 

 

     

 

 

  

 

(1) Represents weighted average exercise price and weighted average remaining contractual life, as applicable. The fair value of awards granted in connection with the share split has been affected to reflect the estimated fair value on the date of such share split.
(2) Reflects aggregate intrinsic value based on the difference between the market price of the Company’s shares at December 31, 2012 and the options’ exercise price. Options issued in connection with the share split had no effect on the intrinsic value of outstanding options.