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SHARE-BASED COMPENSATION
 3 Months Ended
Mar. 31, 2023
Share-Based Payment Arrangement [Abstract]  
SHARE-BASED COMPENSATION
Performance Restricted Stock Units

Performance Restricted Stock Units granted in 2023

Share-settled performance restricted stock units granted in 2023 include a market condition which is the Company’s total shareholder return relative to its peer group ("Relative TSR") over the performance period. Relative TSR is calculated in accordance with the terms of the applicable award agreement. If performance goals are achieved, these awards will cliff vest at the end of a three-year performance period within a range of 0% to 200% of target.

Performance Restricted Stock Units granted in 2023 granted in relation to senior leadership transition

Share-settled performance restricted stock units granted in 2023 to one senior leader include a market condition which is the Company’s total shareholder return relative to its peer group ("Relative TSR") over the performance period. Relative TSR is calculated in accordance with the terms of the applicable award agreement. If performance goals are achieved, fifty percent of these awards will vest at the end of a one-year performance period, and the remaining fifty percent of these awards will vest at the end of a three-year vest period within a range of 0% to 200% of target.

Valuation assumptions

The fair value of performance restricted stock units granted in 2023 was measured on the grant date using a Monte Carlo simulation model.
The following table provides details of the significant inputs used in the Monte Carlo simulation model:
Three months ended March 31,
2023 (1)
2023 (2)
2022
Expected volatility 36.24%29.30%33.44%
Expected term (in years)3.01.03.0
Expected dividend yieldn/an/an/a
Risk-free interest rate3.79%4.61%1.26%
(1) Performance restricted stock units granted in the ordinary course of business
(2) Performance restricted stock units granted in relation to senior leadership transition

Beginning share price: The beginning share price was based on the average closing share price over the 10 trading days preceding and including the start of the performance period.

Ending share price: The ending share price was based on the average projected closing share price over the 10 trading days preceding and including the end of the performance period.

Expected volatility: The expected volatility is estimated based on the Company's historical share price volatility.

Expected term: Performance for awards granted in 2023 is generally measured from January 1, 2023 to December 31, 2025, with performance for awards granted to one senior leader in relation to the senior leadership transition being measured from January 1, 2023 to December 31, 2023. Performance for awards granted in 2022 is measured from January 1, 2022 to December 31, 2024.

Expected dividend yield: The expected dividend yield is not applicable to the performance restricted stock units as dividends are paid at the end of the vesting period and do not affect the value of the performance restricted stock units.

Risk-free interest rate: The risk-free rate is estimated based on the yield on a U.S. treasury zero-coupon bond issued with a remaining term equal to the vesting period of the performance restricted stock units.

Compensation expense associated with performance restricted stock units granted in 2023 and 2022 is determined on the grant date based on the fair value calculated by the Monte Carlo simulation model, and is recognized on a straight-line basis over the requisite service period. During the three months ended March 31, 2023, the transition in our senior leadership resulted in a modification of the previously existing vesting terms of the outstanding restricted stock units and performance restricted stock units granted in 2022 and earlier of one senior leader, and a modification of the performance period of that leader's performance restricted stock units granted in 2022. The modifications did not result in an incremental compensation expense.
Share-Settled Awards

The following table provides an activity summary of the Company's share-settled restricted stock units for the three months ended March 31, 2023:
Share-Settled Performance
Restricted Stock Units		Share-Settled Service
Restricted Stock Units
Number of
restricted
stock units
Weighted 
average
grant date
fair value
Number of
restricted
stock units
Weighted  average
grant date
fair value
Non-vested restricted stock units - beginning of period330 $60.01 2,117 $53.16 
     Granted91 72.14 750 58.05 
     Vested(72)62.26 (705)54.02 
     Forfeited— — (33)53.67 
Non-vested restricted stock units - end of period349 $62.73 2,129 $54.59 

Cash-Settled awards

The following table provides an activity summary of the Company's cash-settled restricted stock units for the three months ended March 31, 2023:
Cash-Settled Service
Restricted Stock Units
Number of
restricted stock units
Non-vested restricted stock units - beginning of period60 
     Granted— 
     Vested(59)
     Forfeited(1)
Non-vested restricted stock units - end of period— 

The following table provides additional information related to share-based compensation:
Three months ended March 31,20232022
Share-based compensation expense(1)
$12,526 $15,011 
Tax benefits associated with share-based compensation expense
$2,647 $2,426 
Liability for cash-settled restricted stock units(2)
$— $3,023 
Fair value of restricted stock units vested(3)
$50,714 $46,970 
Unrecognized share-based compensation expense$108,882 $125,964 
Expected weighted average period associated with the recognition of unrecognized share-based compensation expense2.8 years2.9 years
(1) Related to share-settled restricted stock units and cash-settled restricted stock units.
(2) Included in other liabilities in the consolidated balance sheets.
(3) Fair value is based on the closing price of the Company's common shares on the vest date.