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SHARE-BASED COMPENSATION

6 Months Ended

Jun. 30, 2024

SHARE-BASED COMPENSATION

SHARE-BASED COMPENSATION

NOTE 16—SHARE-BASED COMPENSATION

Refer to the Annual Report for definitions of capitalized terms not included herein and further background on the Company’s share-based compensation programs included in the tables below.

The following table summarizes the Company’s share-based compensation expense for the three months and six months ended June 30, 2024 and 2023, as well as unrecognized compensation cost as of June 30, 2024:


														As of
		Three Months Ended						Six Months Ended						June 30, 2024
		June 30,						June 30,						Unrecognized			Weighted
		2024			2023			2024			2023			Compensation Cost			Average Years
RSUs		$	1.5		$	2.2		$	3.9		$	7.0		$	5.9		1.3
Options			0.2			0.7			1.0			3.3			0.8		1.0
PSUs			0.7			0.9			1.3			1.7			4.1		1.8
Restricted Cash Units ("RCUs")			0.2			—			2.2			—			2.4 ⁽¹⁾		1.7
Total share-based compensation expense		$	2.6		$	3.8		$	8.4		$	12.0

(1)	Unrecognized Compensation Cost related to RCU awards as of June 30, 2024 is calculated using the stock price as of June 30, 2024.

The following table summarizes awards granted and the respective weighted average grant date fair value for the six months ended June 30, 2024:


		Six Months Ended
		June 30, 2024
		Awards Granted			Weighted Average Grant Date Fair Value per Award
RSUs			1,057,062		$	3.64
Options			319,407			2.48
PSUs			575,475			2.81
RCUs			1,074,119			4.85

Option Awards

The following are the weighted average assumptions used within the Black-Scholes pricing model for the Company’s option awards granted during the six months ended June 30, 2024:


		Six Months Ended
		June 30, 2024
Expected term (in years)		5.50
Expected volatility		64.12	%
Risk-free interest rate		4.28	%
Dividend yield		0.73	%

The expected volatility assumption is determined based on the historical volatility of the Company’s publicly traded ordinary shares. The expected term of option awards represents the period of time that option awards granted are expected to be outstanding. For the option awards granted during the six months ended June 30, 2024, the simplified

method was used to calculate the expected term, given the Company’s limited historical exercise data. The risk-free interest rate for the periods within the expected term of option awards is based on the U.S. Treasury yield curve in effect at the time of grant. The dividend yield is estimated based on historical and expected dividend activity.

Performance Share Units (PSUs)

The following are the weighted average assumptions used within the Monte Carlo valuation model for PSUs granted during the six months ended June 30, 2024:


		Six Months Ended
		June 30, 2024
Expected term (in years)		3.00
Expected volatility		65.40	%
Risk-free interest rate		4.40	%
Share price	$	4.37

Determining the fair value of PSUs requires considerable judgment, including estimating the expected volatility of the price of the Company’s ordinary shares, the correlation between the Company’s share price and that of its peer companies, and the expected rate of interest. The expected volatility for each grant is determined based on the historical volatility of the Company’s ordinary shares. The expected term of PSUs represents the length of the performance period. The risk-free interest rate is based on the U.S. Treasury yield curve in effect at the time of grant for a duration equivalent to the performance period. The share price is the closing price of the Company’s ordinary shares on the grant date.

Restricted Cash Units (RCUs)

In the six months ending June 30, 2024, 1,074,119 restricted cash units ("RCUs") were awarded to certain employees and represent the right to receive a cash payment at the end of a vesting period, subject to the employee's continued employment. In general, RCUs vest in equal installments each year over 3 years. RCUs are cash-settled with the value of each vested RCU equal to the lower of the closing price per share of our common stock on the vesting date or a specified per share price cap. Certain awards are subject to a specified price floor. We determined that RCUs are in-substance liabilities accounted for as liability instruments in accordance with ASC 718, Compensation-Stock Compensation, due to this cash settlement feature. RCUs are remeasured based on the closing price per share of our common stock at the end of each reporting period. The liability associated with the RCUs is included in accrued expenses and other current liabilities in the condensed consolidated balance sheet. No RCU awards were vested in the three and six months ending June 30, 2024 while 7,680 RCU awards were forfeited in the three and six months ending June 30, 2024.