Share Plans

3 Months Ended

Apr. 02, 2023

Share-Based Payment Arrangement [Abstract]

Total share-based compensation expense for the quarters ended April 2, 2023 and March 27, 2022 was as follows:


	First Quarter
In millions	2023		2022



Total share-based compensation charges	$	0.6	$	0.2

In March 2023, we issued our annual share-based compensation grants under the Luxfer Holdings PLC Long-Term Umbrella Incentive Plan. The total number of awards issued was approximately 126,600 and the weighted average fair value of options granted in 2023 was estimated to be $17.94 per share.

Also in March 2023, approximately 10,000 awards were granted based on the achievement of total shareholder return targets from the period January 1, 2020 to December 31, 2022. 50% of these awards vested immediately upon grant, with the remaining 50% vesting in March 2024.

The following table illustrates the assumptions used in deriving the fair value of share options granted during the First Quarter of 2023 and the year-ended December 31, 2022:


	First Quarter	Year ended December 31,
	2023	2022
Dividend yield (%)	2.75 - 3.41	2.75 - 3.41
Expected volatility range (%)	36.11 - 49.43	36.11 - 49.43
Risk-free interest rate (%)	1.28 - 2.99	1.28 - 2.99
Expected life of share options range (years)	0.50 - 4.00	0.50 - 4.00
Forfeiture rate (%)	5.00	5.00
Weighted average exercise price ($)	$1.00	$1.00
Model used	Black-Scholes & Monte-Carlo	Black-Scholes & Monte-Carlo

The expected life of the share options is based on historical data and current expectations, and is not necessarily indicative of exercise patterns that may occur. The expected volatility reflects the assumption that the historical volatility over a period similar to the life of the options is indicative of future trends, which may not necessarily be the actual outcome.