XML 26 R15.htm IDEA: XBRL DOCUMENT
v3.23.2

SHARE-BASED COMPENSATION | 6 Months Ended
--- | ---
Jun. 30, 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 the three months ended March 31, 2023 in relation to senior leadership transition Share-settled performance restricted stock units granted in the three months ended March 31, 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. Performance Restricted Stock Units granted in the three months ended June 30, 2023 in relation to senior leadership transition Share-settled performance restricted stock units granted in the three months ended June 30, 2023 to one senior leader include a market condition which is the Company’s total shareholder return's compound annual growth rate ("TSR CAGR") over the performance period. TSR CAGR 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. 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:
| Six months ended June 30, | 2023 (1) | 2023 (2) | 2023 (3) | 2022 |
| Expected volatility | 36.24% | 29.30% | 30.05% | 33.44% |
| Expected term (in years) | 3.0 | 1.0 | 3.0 | 3.0 |
| Expected dividend yield | n/a | n/a | n/a | n/a |
| Risk-free interest rate | 3.79% | 4.61% | 3.39% | 1.26% |
(1) Performance restricted stock units granted in the ordinary course of business (2) Performance restricted stock units granted in the three months ended March 31, 2023 in relation to senior leadership transition (3) Performance restricted stock units granted in the three months ended June 30, 2023 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. The beginning share price of the awards granted in the three months ended June 30, 2023 to one senior leader was based on the average closing share price over the 30 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. The ending share price of the awards granted in the three months ended June 30, 2023 to one senior leader was based on the average closing share price over the 30 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 the three months ended March 31, 2023 being measured from January 1, 2023 to December 31, 2023, and performance for awards granted to one senior leader in the three months ended June 30, 2023 being measured from May 4, 2023 to May 4, 2026. 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 incremental compensation expense. Share-Settled Awards The following table provides an activity summary of the Company's share-settled restricted stock units for the six months ended June 30, 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 period | 330 |  |  | $ | 60.01 |  |  | 2,117 |  |  | $ | 53.16 |  |
| Granted | 122 |  |  | 66.13 |  |  | 856 |  |  | 57.64 |  |
| Vested | (72) |  |  | 62.26 |  |  | (759) |  |  | 53.67 |  |
| Forfeited | — |  |  | — |  |  | (101) |  |  | 53.88 |  |
| Non-vested restricted stock units - end of period | 380 |  |  | $ | 61.55 |  |  | 2,113 |  |  | $ | 54.76 |  |
Cash-Settled awards The following table provides an activity summary of the Company's cash-settled restricted stock units for the six months ended June 30, 2023:
|  |  |  | Cash-Settled Service Restricted Stock Units |
|  |  |  | Number of restricted stock units |
| Non-vested restricted stock units - beginning of period |  |  | 60 |  |
| Granted |  |  | — |  |
| Vested |  |  | (59) |  |
| Forfeited |  |  | (1) |  |
| Non-vested restricted stock units - end of period |  |  | — |  |
The following table provides additional information related to share-based compensation:
| Six months ended June 30, | 2023 |  | 2022 |
| Share-based compensation expense(1) | $ | 28,240 |  |  | $ | 29,052 |  |
| Tax benefits associated with share-based compensation expense | $ | 4,840 |  |  | $ | 4,956 |  |
| Liability for cash-settled restricted stock units(2) | $ | — |  |  | $ | 3,796 |  |
| Fair value of restricted stock units vested(3) | $ | 53,614 |  |  | $ | 48,121 |  |
| Unrecognized share-based compensation expense | $ | 96,649 |  |  | $ | 106,007 |  |
| Expected weighted average period associated with the recognition of unrecognized share-based compensation expense | 2.7 years |  | 2.7 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.

X
- Definition The entire disclosure for share-based payment arrangement. + References Reference 1: http://www.xbrl.org/2003/role/exampleRef -Topic 718 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 2 -Subparagraph (a)(1) -Publisher FASB -URI https://asc.fasb.org//1943274/2147480429/718-10-50-2 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Topic 718 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org//718/tableOfContent Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Topic 718 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 2 -Subparagraph (a) -Publisher FASB -URI https://asc.fasb.org//1943274/2147480429/718-10-50-2 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Topic 718 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 2 -Subparagraph (h)(2) -Publisher FASB -URI https://asc.fasb.org//1943274/2147480429/718-10-50-2 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Topic 718 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 2 -Subparagraph (h)(2)(i) -Publisher FASB -URI https://asc.fasb.org//1943274/2147480429/718-10-50-2 Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Topic 718 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 2 -Subparagraph (l) -Publisher FASB -URI https://asc.fasb.org//1943274/2147480429/718-10-50-2 + Details
Name: | us-gaap_DisclosureOfCompensationRelatedCostsShareBasedPaymentsTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- References No definition available. + Details
Name: | us-gaap_DisclosureOfCompensationRelatedCostsSharebasedPaymentsAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration