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Share-Based Compensation
 12 Months Ended
Dec. 31, 2024
Share-Based Payment Arrangement, Disclosure [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. Under the Company's incentive share plan, the total number of ordinary shares authorized by the shareholders is 23.0 million, of which 10.5 million remains available as of December 31, 2024 for future incentive awards.
Compensation Expense
Share-based compensation expense related to continuing operations is included in Selling and administrative expenses. The following table summarizes the expenses recognized:
In millions202420232022
Stock options$17.9 $16.1 $14.1 
RSUs27.3 23.5 19.7 
PSUs36.4 23.2 20.7 
Deferred compensation3.9 4.3 1.2 
Pre-tax expense85.5 67.1 55.7 
Tax benefit(20.7)(16.3)(13.5)
After-tax expense$64.8 $50.8 $42.2 
Amounts recorded in continuing operations$64.8 $50.8 $42.6 
Amounts recorded in discontinued operations— — (0.4)
Total$64.8 $50.8 $42.2 
Grants issued during the years ended December 31 were as follows:
202420232022
Number GrantedWeighted-average fair value per awardNumber GrantedWeighted-average fair value per awardNumber GrantedWeighted-average fair value per award
Stock options268,922 $79.09 425,444 $47.53 430,496 $35.96 
RSUs112,227 $287.84 214,425 $184.35 139,730 $165.07 
Performance shares (1)
161,978 $332.85 208,046 $207.23 195,930 $170.31 
(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 year ended December 31:
202420232022
Dividend yield1.11 %1.50 %1.60 %
Volatility29.99 %29.37 %28.23 %
Risk-free rate of return4.00 %3.62 %1.56 %
Expected life in years4.84.84.8
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.
Changes in options outstanding under the plans for the years 2024, 2023 and 2022 were as follows:
Shares
subject
to option		Weighted-
average
exercise price		Aggregate
intrinsic
value (millions)		Weighted-
average
remaining life (years)
December 31, 20214,411,000 $83.39 
Granted430,496 167.93 
Exercised(633,962)66.06 
Cancelled(57,050)137.38   
December 31, 20224,150,484 $94.06 
Granted425,444 182.27 
Exercised(1,382,846)80.67 
Cancelled(21,365)168.18   
December 31, 20233,171,717 $111.23 
Granted268,922 278.57 
Exercised(914,667)86.25 
Cancelled(17,842)227.59   
Outstanding December 31, 20242,508,130 $137.46 $581.8 5.4
Exercisable December 31, 20241,815,960 $107.50 $475.5 4.4

At December 31, 2024, there was $12.3 million of total unrecognized compensation cost from stock option arrangements granted under the plan, which is primarily related to unvested shares of non-retirement eligible employees. The aggregate intrinsic value of options exercised during the years ended December 31, 2024 and 2023 was $210.2 million and $159.8 million, respectively. Generally, stock options expire ten years from their date of grant.
The following table summarizes RSU activity for the years 2024, 2023 and 2022:
RSUsWeighted-
average grant
date fair value
Outstanding and unvested at December 31, 2021371,030 $118.88 
Granted139,730 165.07 
Vested(202,172)107.29 
Cancelled(13,935)136.89 
Outstanding and unvested at December 31, 2022294,653 $147.88 
Granted214,425 184.35 
Vested(154,134)134.87 
Cancelled(13,153)173.28 
Outstanding and unvested at December 31, 2023341,791 $175.65 
Granted112,227 287.84 
Vested(134,791)164.69 
Cancelled(10,448)214.39 
Outstanding and unvested at December 31, 2024308,779 $219.89 
At December 31, 2024, there was $25.2 million of total unrecognized compensation cost from RSU arrangements granted under the plan, which is related to unvested shares of non-retirement eligible employees.
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.
The following table summarizes PSU activity for the maximum number of shares that may be issued for the years 2024, 2023 and 2022:
PSUsWeighted-average grant date fair value
Outstanding and unvested at December 31, 2021801,956 $131.14 
Granted195,930 170.31 
Vested(346,540)89.70 
Forfeited(42,320)164.21 
Outstanding and unvested at December 31, 2022609,026 $165.02 
Granted208,046 207.23 
Vested(237,586)147.33 
Forfeited(20,526)186.32 
Outstanding and unvested at December 31, 2023558,960 $187.47 
Granted161,978 332.85 
Vested(184,060)182.48 
Forfeited(21,072)226.31 
Outstanding and unvested at December 31, 2024515,806 $233.32 
At December 31, 2024, there was $14.7 million of total unrecognized compensation cost from PSU arrangements based on current performance, which is related to unvested shares. This compensation will be recognized over the required service period, which is generally the three-year vesting period.
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.
Share Based Compensation Stock Option And Restricted Stock Units Granted [Text Block]
Grants issued during the years ended December 31 were as follows:
202420232022
Number GrantedWeighted-average fair value per awardNumber GrantedWeighted-average fair value per awardNumber GrantedWeighted-average fair value per award
Stock options268,922 $79.09 425,444 $47.53 430,496 $35.96 
RSUs112,227 $287.84 214,425 $184.35 139,730 $165.07 
Performance shares (1)
161,978 $332.85 208,046 $207.23 195,930 $170.31 
(1) The number of performance shares represents the maximum award level.