Share-Based Compensation

9 Months Ended

Sep. 30, 2022

Share-Based Compensation.

Share-Based Compensation

NOTE 15—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 nine months ended September 30, 2022 and 2021, as well as unrecognized compensation cost as of September 30, 2022:

									As of
	Three Months Ended				Nine Months Ended				September 30, 2022
	September 30,				September 30,				Unrecognized		Weighted
	2022		2021		2022		2021		Compensation Cost		Average Years
RSUs	$	2.1	$	2.1	$	9.1	$	5.7	$	11.3	1.7
Options		0.6		1.2		4.4		3.5		2.7	1.4
PSUs		0.7		0.7		2.1		1.8		4.4	2.0
Total share-based compensation expense	$	3.4	$	4.0	$	15.6	$	11.0

The following table summarizes awards granted and the respective weighted average grant date fair value for the nine months ended September 30, 2022:

	Nine Months Ended
	September 30, 2022
	Awards Granted		Weighted Average Grant Date Fair Value per Award
RSUs		197,986	$	52.10
Options		192,175		22.52
PSUs		63,317		57.47

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 nine months ended September 30, 2022:

	Nine Months Ended
	September 30, 2022
Expected term (in years)	5.50
Expected volatility	48.72	%
Risk-free interest rate	1.97	%
Dividend yield	2.00	%

The expected volatility assumption is 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 nine months ended September 30, 2022, 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 nine months ended September 30, 2022:

		Nine Months Ended
		September 30, 2022
Expected term (in years)		3.00
Expected volatility		57.30	%
Risk-free interest rate		1.73	%
Share price	$	58.64

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.