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Share-Based Compensation | 6 Months Ended
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Jun. 30, 2024
Share-Based Payment Arrangement, Noncash Expense [Abstract] |
Share-Based Compensation | Share-Based Compensation The Company accounts for share-based compensation plans under the fair value based method. The Company’s share-based compensation plans include programs for stock options, restricted stock units (RSUs), performance share units (PSUs) and deferred compensation. Share-based compensation expense related to continuing operations is included in Selling and administrative expenses. The expense recognized for the three and six months ended June 30 was as follows:
| Three months ended |  | Six months ended
In millions | 2024 |  | 2023 |  | 2024 |  | 2023
Stock options | $ | 4.8 |  |  | $ | 2.8 |  |  | $ | 8.9 |  |  | $ | 11.8 |
RSUs | 8.8 |  |  | 6.0 |  |  | 14.6 |  |  | 16.6 |
Performance shares | 9.6 |  |  | 6.9 |  |  | 19.1 |  |  | 11.3 |
Deferred compensation | 0.9 |  |  | 1.2 |  |  | 1.6 |  |  | 2.2 |
Pre-tax expense | 24.1 |  |  | 16.9 |  |  | 44.2 |  |  | 41.9 |
Tax benefit | (5.8) |  |  | (4.1) |  |  | (10.7) |  |  | (10.2) |
After-tax expense | $ | 18.3 |  |  | $ | 12.8 |  |  | $ | 33.5 |  |  | $ | 31.7 |
Grants issued during the six months ended June 30 were as follows:
| 2024 |  | 2023
| Number granted |  | Weighted- average fair value per award |  | Number granted |  | Weighted- average fair value per award
Stock options | 249,579 |  |  | $ | 76.85 |  |  | 389,355 |  |  | $ | 46.70 |
RSUs | 98,948 |  |  | $ | 276.15 |  |  | 173,364 |  |  | $ | 176.82 |
Performance shares (1) | 161,030 |  |  | $ | 332.17 |  |  | 206,018 |  |  | $ | 207.07 |
(1) The number of performance shares represents the maximum award level. Stock Options / RSUs Eligible participants may receive (i) stock options, (ii) RSUs or (iii) a combination of both stock options and RSUs. The fair value of each of the Company’s stock option and RSU awards is expensed on a straight-line basis over the required service period, which is generally the 3-year vesting period. Beginning with the 2024 grant year, for stock options and RSUs granted to retirement eligible employees, the Company recognizes expense over the period during which an employee is required to provide service in exchange for the award, which is generally 12 months. For awards granted to retirement eligible employees prior to 2024, the Company recognized expense for the fair value at the grant date. The average fair value of the stock options granted is determined using the Black-Scholes option-pricing model. The following assumptions were used during the six months ended June 30:
| 2024 |  | 2023
Dividend yield | 1.11 | % |  | 1.50 | %
Volatility | 29.99 | % |  | 29.35 | %
Risk-free rate of return | 4.00 | % |  | 3.60 | %
Expected life in years | 4.8 |  | 4.8
A description of the significant assumptions used to estimate the fair value of the stock option awards is as follows: •Dividend yield - The Company determines the dividend yield based upon the expected quarterly dividend payments as of the grant date and the current fair market value of the Company’s shares. •Volatility - The expected volatility is based on a weighted average of the Company’s implied volatility and the most recent historical volatility of the Company’s shares commensurate with the expected life. •Risk-free rate of return - The Company applies a yield curve of continuous risk-free rates based upon the published US Treasury spot rates on the grant date. •Expected life in years - The expected life of the Company’s stock option awards represents the weighted-average of the actual period since the grant date for all exercised or canceled options and an expected period for all outstanding options. Performance Shares The Company has a Performance Share Program (PSP) for key employees. The program provides awards in the form of PSUs based on performance against pre-established objectives. The annual target award level is expressed as a number of the Company’s ordinary shares based on the fair market value of the Company’s stock on the date of grant. All PSUs are settled in the form of ordinary shares. PSU awards are earned based 50% upon a performance condition, measured by relative Cash Flow Return on Invested Capital (CROIC) to the S&P 500 Industrials Index over a 3-year performance period, and 50% upon a market condition, measured by the Company’s relative total shareholder return (TSR) as compared to the TSR of the S&P 500 Industrials Index over a 3-year performance period. Beginning with the 2024 grant year, for PSUs granted to retirement eligible employees, the Company recognizes the expense over the period during which an employee is required to provide service in exchange for the award, which is 12 months. For awards granted to retirement eligible employees prior to 2024, the expense was recognized over the 3-year performance period. The fair value of the market condition is estimated using a Monte Carlo simulation model in a risk-neutral framework based upon historical volatility, risk-free rates and correlation matrix. Deferred Compensation The Company allows key employees to defer a portion of their eligible compensation into a number of investment choices, including its ordinary share equivalents. Any amounts invested in ordinary share equivalents will be settled in ordinary shares of the Company at the time of distribution.

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