Share-Based Compensation

9 Months Ended

Sep. 30, 2021

Share-based Payment Arrangement [Abstract]

13. Share-Based Compensation

Share-based compensation expense is included in “Selling, general, and administrative” in the condensed consolidated statements of income (loss). Total share-based compensation expense is as follows:


	Three Months Ended September 30,				Nine Months Ended September 30,
	2021		2020		2021		2020
Cash-settled share-based compensation expense	$	2	$	—	$	18	$	1
Share-settled share-based compensation expense	9		4		18		13
	$	11	$	4	$	36	$	14

Cash-Settled Awards

The Company has granted restricted stock units (“RSUs”) and performance share units (“PSUs”) to certain key employees that are payable in cash. These awards are classified as liabilities and remeasured at fair value each reporting date until settlement. Compensation expense for the RSUs is recognized ratably over the requisite service period. Compensation expense for the PSUs is recognized ratably over the requisite service period if it is probable the performance target related to the PSUs will be achieved and subsequently adjusted if this probability assessment changes. The PSUs have the potential to pay out between zero and 200%, based on performance target achievement. The following table reflects the number of cash-settled share-based units outstanding:


	September 30, 2021	December 31, 2020
RSUs	1,751,649	1,878,220
PSUs	2,995,062	—
	4,746,711	1,878,220

At September 30, 2021 and December 31, 2020, the liability of all cash-settled RSUs was $12 million and $3 million. The liability of all cash-settled PSUs at September 30, 2021 was $10 million and there were no outstanding PSUs at December 31, 2020.

At September 30, 2021, there is $43 million in unrecognized costs on the cash-settled awards, using the quarter end stock price, that is expected to be recognized over a weighted-average period of approximately two years.

Share-Settled Awards

The Company has granted restricted stock, RSUs, and PSUs that are payable in shares to certain key employees. These awards are classified as equity and are recognized at the grant date fair value. Compensation expense for the restricted stock and RSUs is recognized ratably over the requisite service period. Compensation expense for the PSUs is recognized ratably over the requisite service period if it is probable the performance target will be achieved, and subsequently adjusted if this probability assessment changes. The PSUs have the potential to pay out between zero and 200%, based on performance target achievement. The following table reflects the status of all share-settled RSUs and PSUs for the nine months ended September 30, 2021:


	Share-Settled RSUs		Share-Settled PSUs
		Units	Weighted Avg. Grant Date Fair Value		Units	Weighted Avg. Grant Date Fair Value
Nonvested balance at beginning of period		2,118,605	$	26.00	527,105	$	36.37
Granted		2,104,953	10.85		—	—
Vested		(785,633)	31.69		(57,794)	49.18
Forfeited		(207,146)	17.79		(134,361)	46.61
Nonvested balance at end of period		3,230,779	$	15.15	334,950	$	24.60