Share-Based Compensation

9 Months Ended

Sep. 30, 2022

Share-Based Payment Arrangement [Abstract]

12. Share-Based Compensation

Share-based compensation expense is included in “Selling, general, and administrative” in the condensed consolidated statements of income (loss). Total share-based compensation expense is as follows:


	Three Months Ended September 30,				Nine Months Ended September 30,
	2022		2021		2022		2021
Cash-settled share-based compensation expense	$	10	$	2	$	39	$	18
Share-settled share-based compensation expense	5		9		17		18
	$	15	$	11	$	56	$	36

Cash-Settled Awards

The Company grants restricted stock units (“RSUs”) and performance share units (“PSUs”) to certain key employees that are payable in cash. These awards are classified as liabilities, and are valued based on the fair value of the award at the grant date, and then remeasured at each reporting date until settlement with compensation expense being recognized in proportion to the completed requisite period up until the date of settlement. Additionally, compensation expense for PSUs is recognized ratably over the requisite service period if it is probable the performance target related to the PSUs will be achieved and subsequently adjusted if this probability assessment changes. The PSUs have the potential to pay out between zero and 200%, based on performance target achievement.

The following table reflects the number of cash-settled share-based units outstanding:


	September 30, 2022	December 31, 2021
RSUs	1,188,372	1,451,422
PSUs	4,376,689	2,951,316
	5,565,061	4,402,738

The following table reflects the cash-settled share-based liabilities:


	September 30, 2022		December 31, 2021
Cash-settled share-based RSU liability	$	15	$	6
Cash-settled share-based PSU liability	36		10
	$	51	$	16

At September 30, 2022, $36 million in unrecognized costs on the cash-settled awards is expected to be recognized over a weighted average period of approximately two years.

Share-Settled Awards

The Company grants RSUs and PSUs to certain key employees that are payable in common stock. These awards are settled in shares upon vesting, and valued at the grant date fair value with compensation expense being recognized in proportion to the completed requisite period up until the date of settlement. Additionally, compensation expense for PSUs is recognized ratably over the requisite service period if it is probable the performance target related to the PSUs will be achieved and subsequently adjusted if this probability assessment changes.

The following table reflects the changes in share-settled RSUs and share-settled PSUs for the nine months ended September 30, 2022:


	Share-Settled RSUs		Share-Settled PSUs
		Units	Weighted Avg. Grant Date Fair Value		Units	Weighted Avg. Grant Date Fair Value
Nonvested balance at beginning of period		3,117,058	$	13.94	328,296	$	24.72
Granted		2,520,753	10.52		—	—
Vested		(1,372,513)	17.62		(276,316)	24.72
Forfeited		(153,922)	12.02		(51,980)	24.72
Nonvested balance at end of period		4,111,376	$	10.41	—	$	—

At September 30, 2022, $28 million in unrecognized costs on the share-settled awards is expected to be recognized over a weighted average period of approximately two years.