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Share-Based Compensation
 9 Months Ended
Sep. 30, 2022
Share-Based Payment Arrangement [Abstract]  
Share-Based Compensation Share-Based Compensation
Topgolf Replacement Awards
In connection with the merger with Topgolf (see Note 5), which was completed on March 8, 2021, the Company converted stock options previously held by former equity holders of Topgolf into 3.2 million options to purchase shares of the Company’s common stock, and certain outstanding restricted stock awards of Topgolf into 0.2 million shares of the Company’s common stock. During the three months ended September 30, 2022 and 2021, the Company recognized compensation expense, net of estimated forfeitures, of $0.7 million and $1.5 million, respectively, related to these awards. During the nine months ended September 30, 2022 and 2021, the Company recognized compensation expense, net of estimated forfeitures, of $2.2 million and $3.5 million, respectively, related to these awards.
Restricted Stock Units
During the three months ended September 30, 2022 and 2021, the Company granted a nominal amount of shares underlying restricted stock units at a weighted average grant-date fair value of $22.80 per share and $29.67 per share, respectively. During the nine months ended September 30, 2022 and 2021, the Company granted 0.7 million shares and 1.1 million shares, respectively, underlying restricted stock units at a weighted average grant-date fair value of $22.82 per share and $29.62 per share, respectively.
Compensation expense, net of estimated forfeitures, for restricted stock units was $4.5 million and $3.8 million for the three months ended September 30, 2022 and 2021, respectively, and $13.2 million and $9.8 million for the nine months ended September 30, 2022 and 2021, respectively.
Performance-Based Awards
During the three months ended September 30, 2022, the Company granted a nominal amount of shares underlying total shareholder return performance-based restricted stock units at a weighted average grant-date fair value of $23.28 per share. There were no performance-based restricted stock units granted during the three months ended September 30, 2021. During the nine months ended September 30, 2022 and 2021, the Company granted 0.5 million shares and 1.4 million shares, respectively, underlying various performance metrics, including adjusted pre-tax income, earnings before interest, tax, depreciation and amortization and stock compensation, and total shareholder returns, at a weighted average grant-date fair value of $23.37 per share and $29.42 per share, respectively.
Performance-based restricted stock units granted by the Company cliff-vest after three years, except for certain one-time grants to the Company's Chief Executive Officer and Chief Financial Officer in connection with the Topgolf merger, of which 50% will vest after three years and the remaining 50% will vest after four years. The number of shares that may ultimately be issued upon vesting is based on the achievement of the respective metrics for each award, which may range from 0% to 200%. As of September 30, 2022, all performance-based restricted stock units were within the probable range of achievement.
Compensation expense, net of estimated forfeitures, for performance-based awards was $5.2 million and $6.1 million for the three months ended September 30, 2022 and 2021, respectively, and $22.0 million and $13.8 million for the nine months ended September 30, 2022 and 2021, respectively.
Share-Based Compensation Expense
The table below summarizes the amounts recognized in the financial statements related to share-based compensation for the three and nine months ended September 30, 2022 and 2021, including expense for stock options, restricted stock awards, restricted stock units and performance-based restricted stock units (in millions).
Three Months Ended September 30,Nine Months Ended
September 30,
2022202120222021
Cost of products$0.2 $0.3 $1.2 $0.9 
Selling, general and administrative expenses10.0 10.8 35.0 25.5 
Research and development expenses0.1 0.3 0.9 0.7 
Other venue expenses0.1 — 0.3 — 
Total cost of share-based compensation included in income, before income tax10.4 11.4 37.4 27.1 
Income tax benefit(2.5)(2.7)(9.0)(6.5)
Total cost of share-based compensation, after tax$7.9 $8.7 $28.4 $20.6