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SHARE-BASED COMPENSATION
 6 Months Ended
Jun. 30, 2021
Share-based Payment Arrangement [Abstract]  
SHARE-BASED COMPENSATION SHARE-BASED COMPENSATION
 
Certain key employees and non-employee directors participate in the Amended and Restated 2014 Equity Participation Plan of Civeo Corporation (the Civeo Plan). The Civeo Plan authorizes our Board of Directors and the Compensation Committee of our Board of Directors to approve grants of options, awards of restricted shares, performance awards, phantom share awards and dividend equivalents, awards of deferred shares, and share payments to our employees and non-employee directors. No more than 2.4 million Civeo common shares are authorized to be issued under the Civeo Plan.
 
Outstanding Awards
 
Restricted Share Awards / Restricted Share Units / Deferred Share Awards. On May 19, 2021, we granted 45,762 restricted share awards to our non-employee directors, which vest in their entirety on May 19, 2022.

Compensation expense associated with restricted share awards, restricted share units and deferred share awards recognized in the three months ended June 30, 2021 and 2020 totaled $0.3 million and $0.8 million, respectively. Compensation expense associated with restricted share awards, restricted share units and deferred share awards recognized in the six months ended June 30, 2021 and 2020 totaled $0.8 million and $2.0 million, respectively. The total fair value of restricted share awards, restricted share units and deferred share awards that vested during the three months ended June 30, 2021 and 2020 was zero and $0.2 million, respectively. The total fair value of restricted share awards, restricted share units and deferred share awards that vested during the six months ended June 30, 2021 and 2020 was $1.5 million and $2.6 million, respectively.
 
At June 30, 2021, unrecognized compensation cost related to restricted share awards, restricted share units and deferred share awards was $1.2 million, which is expected to be recognized over a weighted average period of 0.8 years.
 
Phantom Share Awards. On February 22, 2021, we granted 270,079 phantom share awards under the Civeo Plan, which vest in three equal annual installments beginning on February 22, 2022. We also granted 81,774 phantom share awards under the Canadian Long-Term Incentive Plan, which vest in three equal annual installments beginning on February 22, 2022.

During the three months ended June 30, 2021 and 2020, we recognized compensation expense associated with phantom shares totaling $1.4 million and $0.4 million, respectively. During the six months ended June 30, 2021 and 2020, we recognized compensation expense associated with phantom shares totaling $2.9 million and $0.7 million, respectively. At June 30, 2021, unrecognized compensation cost related to phantom shares was $9.6 million, as remeasured at June 30, 2021, which is expected to be recognized over a weighted average period of 2.2 years.
 
Performance Awards. On February 22, 2021, we granted 129,754 performance awards under the Civeo Plan, which cliff vest in three years on February 22, 2024. These awards will be earned in amounts between 0% and 200% of the participant’s target performance share award, based on (1) the payout percentage associated with Civeo’s relative total shareholder return rank among a peer group that includes 17 other companies and (2) the payout percentage associated with Civeo's cumulative free cash flow over the performance period relative to a preset target. The portion of the performance awards tied to cumulative free cash flow includes a performance-based vesting requirement. The fair value of these awards is based on the closing market price of our common shares on the date of grant. We evaluate the probability of achieving the performance criteria throughout the performance period and will adjust share-based compensation expense based on the number of shares expected to vest based on our estimate of the most probable performance outcome. The ultimate payout of the cumulative free cash flow component of the award can vary from 0% to 60% based on actual results.
During the three months ended June 30, 2021 and 2020, we recognized compensation expense associated with performance awards totaling $0.6 million and $0.6 million, respectively. During the six months ended June 30, 2021 and 2020, we recognized compensation expense associated with performance awards totaling $1.1 million and $1.5 million, respectively. The total fair value of performance share awards that vested during the three months ended June 30, 2021 and 2020 was zero. The total fair value of performance share awards that vested during the six months ended June 30, 2021 and 2020 was $1.9 million and $1.9 million, respectively. At June 30, 2021, unrecognized compensation cost related to performance shares was $3.9 million, which is expected to be recognized over a weighted average period of 2.2 years.