XML 45 R21.htm IDEA: XBRL DOCUMENT v3.20.4
Share-Based Compensation Plans
 12 Months Ended
Dec. 31, 2020
Share-based Payment Arrangement, Noncash Expense [Abstract]  
Share-based compensation plans SHARE-BASED COMPENSATION PLANS
    All share-based compensation for employees and directors is granted under the 2019 Long-Term Incentive Plan, as amended (the "Plan"). The Plan has been approved by our shareholders and provides for the granting of awards to our employees and directors. The purpose of the Plan is to attract and retain individuals of exceptional talent and encourage these individuals to acquire a vested interest in our success and prosperity. The awards that may be granted under this program include non-qualified stock options, restricted stock, restricted share units, and performance share units based on relative total shareholder return ("RTSR"). Restricted shares are generally service-based, requiring a certain length of service before vesting occurs, while restricted share units can be either service-based or performance-based. Performance-based restricted share units require a certain length of service until vesting; however, they contain an additional performance feature, which can vary the amount of shares ultimately paid out based on certain performance criteria specified in the Plan. RTSR performance share units are subject to a market condition. Awards granted under the Plan vest and may be exercised and/or sold from one year to ten years after the date of grant based on a vesting schedule. As of December 31, 2020, there were 4.0 million shares available to be granted.

    Share-based compensation expense was as follows (in millions):
Year Ended
December 31,
2020		December 31,
2019		December 31,
2018
$58.5 $52.2 $37.7 

    As of December 31, 2020, unrecognized share-based compensation expense was $55.2 million, and the weighted-average period over which the expense is expected to be recognized was approximately 1.4 years. Proceeds from the exercise of stock options are credited to ordinary shares.
Stock Options

    A summary of activity related to stock options is presented below (options in thousands):
 Number of
Options		Weighted-Average
Exercise
Price Per Share		Weighted-
Average
Remaining
Term in
Years		Aggregate
Intrinsic
Value
Options outstanding at December 31, 20181,534 $91.56 
Granted— $— 
Exercised(27)$34.30 
Forfeited or expired(43)$99.58 
Options outstanding at December 31, 20191,464 $92.33 5.8$— 
Granted— $— 
Exercised— $— 
Forfeited or expired(120)$78.21 
Options outstanding December 31, 20201,344 $93.61 5.2$— 
Options exercisable1,138 $96.34 4.8$— 
Options expected to vest200 $78.51 7.1$— 

    The aggregate intrinsic value for options exercised was as follows (in millions):
Year Ended
December 31,
2020		December 31,
2019		December 31,
2018
$— $0.5 $1.1 

    The weighted-average fair value per share at the grant date for options granted was as follows:
Year Ended
December 31,
2020		December 31,
2019		December 31,
2018
$— $— $24.43 

    The fair value was estimated using the Black-Scholes option pricing model with the following weighted-average assumptions:
 
 Year Ended
 December 31,
2018
Dividend yield0.8 %
Volatility, as a percent31.2 %
Risk-free interest rate2.8 %
Expected life in years5.6

    The valuation model utilizes historical volatility. The risk-free interest rate is based on the yield of U.S. government securities with a maturity date that coincides with the expected term of the option. The expected life in years is estimated based on past exercise behavior of employees.
Non-Vested Service-Based Restricted Share Units

    A summary of activity related to non-vested service-based restricted share units is presented below (units in thousands):
 Number of
Non-vested
Service-
Based
Share Units		Weighted-
Average
Grant Date
Fair Value Per Share		Weighted-
Average
Remaining
Term in
Years		Aggregate
Intrinsic
Value
Non-vested service-based share units outstanding at December 31, 2018728 $89.47 
Granted818 $47.48 
Vested(269)$95.09 
Forfeited(66)$71.03 
Non-vested service-based share units outstanding at December 31, 20191,211 $60.96 1.4$62.5 
Granted823 $54.68 
Vested(372)$69.64 
Forfeited(42)$59.82 
Non-vested service-based share units outstanding at December 31, 20201,620 $55.82 1.0$72.5 
    
    The weighted-average fair value per share at the date of grant for service-based restricted share units granted was as follows:
Year Ended
December 31,
2020		December 31,
2019		December 31,
2018
$54.68 $47.48 $81.51 

    The total fair value of service-based restricted share units that vested was as follows (in millions):
Year Ended
December 31,
2020		December 31,
2019		December 31,
2018
$25.9 $25.6 $24.6 
Non-Vested Performance-Based Restricted Share Units

    A summary of activity related to non-vested performance-based restricted share units is presented below (units in thousands):
 Number of
Non-vested
Performance-
Based
Share Units		Weighted-
Average
Grant
Date Fair
Value Per Share		Weighted-
Average
Remaining
Term in
Years		Aggregate
Intrinsic
Value
Non-vested performance-based share units outstanding at December 31, 2018442 $86.61 
Granted298 $47.54 
Vested(68)$116.35 
Forfeited(19)$72.83 
Non-vested performance-based share units outstanding at December 31, 2019653 $61.44 1.5$33.7 
Granted291 $55.08 
Vested(184)$68.89 
Forfeited(9)$70.60 
Non-vested performance-based share units outstanding at December 31, 2020751 $57.13 1.4$33.6 

    The weighted-average fair value of performance-based restricted share units can fluctuate depending upon the success or failure of the achievement of performance criteria as set forth in the Plan. The weighted-average fair value per share at the date of grant for performance-based restricted share units granted was as follows:
Year Ended
December 31,
2020		December 31,
2019		December 31,
2018
$55.08 $47.54 $85.01 

    The total fair value of performance-based restricted share units that vested was as follows (in millions):
Year Ended
December 31,
2020		December 31,
2019		December 31,
2018
$12.7 $8.0 $2.4 

Non-vested Relative Total Shareholder Return Performance Share Units

    The fair value of the RTSR performance share units is determined using the Monte Carlo pricing model as the number of shares to be awarded is subject to a market condition. The valuation model considers a range of possible outcomes, and compensation cost is recognized regardless of whether the market condition is actually satisfied.

    The assumptions used in estimating the fair value of the RTSR performance share units granted during each year were as follows:
 Year Ended
 December 31,
2020		December 31,
2019		December 31,
2018
Dividend yield1.6 %1.6 %0.9 %
Volatility, as a percent40.4 %40.2 %35.3 %
Risk-free interest rate0.6 %1.9 %2.4 %
Expected life in years2.82.42.8
    A summary of activity related to non-vested RTSR performance share units is presented below (units in thousands):
 Number of
Non-vested
RTSR Performance Share Units		Weighted-
Average
Grant
Date Fair
Value Per Share		Weighted-
Average
Remaining
Term in
Years*		Aggregate
Intrinsic
Value
Non-vested RTSR performance share units outstanding at December 31, 201862 $78.35 
Granted80 $55.61 
Vested— $— 
Forfeited— $— 
Non-vested RTSR performance share units outstanding at December 31, 2019142 $63.02 1.5$7.3 
Granted58 $67.72 
Vested(24)$62.73 
Forfeited— $— 
Non-vested RTSR performance share units outstanding at December 31, 2020176 $65.04 1.5$7.9 

* Midpoint used in calculation.

    The weighted-average fair value per share at the date of grant for RTSR performance share units granted was as follows:
Year Ended
December 31,
2020		December 31,
2019		December 31,
2018
$67.72 $55.61 $101.13 

The total fair value of RTSR performance share units that vested was as follows (in millions):

Year Ended
December 31,
2020		December 31,
2019		December 31,
2018
$1.5 $— $—