Share-Based Compensation

6 Months Ended

Jun. 30, 2020

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

Share-Based Compensation

NOTE 13—SHARE-BASED COMPENSATION

Refer to the Annual Report for definitions of capitalized terms not included herein and further background on the Company’s share-based compensation programs included in the tables below.

The following table summarizes the Company’s share-based compensation expense for the three and six months ended June 30, 2020 and 2019, as well as unrecognized compensation cost as of June 30, 2020:

									As of
	Three Months Ended				Six Months Ended				June 30, 2020
	June 30,				June 30,				Unrecognized		Weighted
	2020		2019		2020		2019		Compensation Cost		Average Years
RSUs	$	1.8	$	1.9	$	3.5	$	4.0	$	12.3	2.0
Options		0.8		0.8		1.8		2.0		2.7	1.4
PSUs		0.5		0.8		1.0		1.7		3.7	2.1
Total share-based compensation expense	$	3.1	$	3.5	$	6.3	$	7.7

The following table summarizes awards granted and the respective weighted average grant date fair value for the six months ended June 30, 2020:

	Six Months Ended
	June 30, 2020
	Awards Granted		Weighted Average Grant Date Fair Value per Award
RSUs		355,818	$	24.13
Options		530,241		6.51
PSUs		102,545		24.54

Option Awards

The following are the weighted average assumptions used within the Black-Scholes pricing model for the Company’s option awards granted during the six months ended June 30, 2020:

	Six Months Ended
	June 30, 2020
Expected term (in years)	5.50
Expected volatility	39.93	%
Risk-free interest rate	1.19	%
Dividend yield	3.25	%

The expected volatility assumption is predominantly determined based on the historical volatility of the Company’s publicly traded ordinary shares. The expected term of option awards represents the period of time that option awards granted are expected to be outstanding. For the option awards granted during the six months ended June 30, 2020, the simplified method was used to calculate the expected term, given the Company’s limited historical exercise data. The risk-free interest rate for the periods within the expected term of option awards is based on the U.S. Treasury yield curve in effect at the time of grant. The dividend yield is estimated based on historical and expected dividend activity.

Performance Share Units (PSUs)

The following are the weighted average assumptions used within the Monte Carlo valuation model for PSUs granted during the six months ended June 30, 2020:

		Six Months Ended
		June 30, 2020
Expected term (in years)		3.00
Expected volatility		40.50	%
Risk-free interest rate		1.16	%
Share price	$	24.30

Determining the fair value of PSUs requires considerable judgment, including estimating the expected volatility of the price of the Company’s ordinary shares, the correlation between the Company’s share price and that of its peer companies, and the expected rate of interest. The expected volatility for each grant is determined based on the historical volatility of the Company’s ordinary shares. The expected term of PSUs represents the length of the performance period. The risk-free interest rate is based on the U.S. Treasury yield curve in effect at the time of grant for a duration equivalent to the performance period. The share price is the closing price of the Company’s ordinary shares on the grant date.