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Share-based Compensation Plans (Tables)
12 Months Ended
Dec. 31, 2022
Share-Based Payment Arrangement [Abstract]  
Schedule of Stock-Based Compensation Plan Expense
Share-based compensation during the fiscal year ended December 31, 2022 was recorded in the Consolidated Statements of Earnings within general and administrative expenses as shown in the following table (in millions):
Total Share-Based Compensation Expense$5 
Tax benefit recognized from Share-Based Compensation
Schedule of Stock Options Valuation Assumptions
The assumptions used in valuing stock options during the period are set forth in the following table:
Year Ended December 31,
2022
Expected term(1)
0.04 – 5.18 years
Expected volatility(2)
45.0 %
Risk-free interest rate(3)
3.8– 4.7%
Expected dividend yield(4)
— %
(1) The expected term is based upon historical experience and represents the period of time between when the options are granted and when they are expected to be exercised.
(2) The computation of expected volatility is based on a blend of historical RADA volatility and leverage-adjusted historical volatility of the Company’s publicly traded peers.
(3) The risk-free interest rate is based on the bootstrap adjusted U.S. Treasury Rate Yield Curve Rate as of the valuation date, term matched with expected life of the awards.
(4) The expected dividend yield is based on the Company’s historical experience and expectation of future dividend payouts and may be subject to changes in the future.
Schedule of Stock Option Activity
The following table shows a summary of all option activity under the 2022 Equity Plan:
Number of Shares

(in millions)
Weighted Average Exercise Price Per ShareWeighted Average Remaining Contractual Term

(in years)
Aggregate Intrinsic Value

(Dollars in millions)
Outstanding as of January 1, 2022 $ 
Assumed5.38 $8.42 
Exercised(0.04)$3.34 
Forfeited— — 
Outstanding as of December 31, 20225.34 $8.45 4$23 
Exercisable as of December 31, 20224.11 $8.07 4$20 
Vested and expected to vest as of December 31, 20225.34 $8.45 4$23 
Schedule of RSUs and PRSUs Activity The following table shows a summary of all RSU activity under the 2022 Equity Plan:
Number of Shares

(in millions)
Weighted Average Grant Date Fair Value
Unvested as of January 1, 2022 $ 
Granted1.43 $9.87 
Vested— $— 
Forfeited— $— 
Unvested as of December 31, 20221.43 $9.87 
The following table shows a summary of all PRSU activity under the 2022 Equity Plan:
Number of Shares

(in millions)
Weighted Average Grant Date Fair Value
Unvested as of January 1, 2022 $ 
Granted1.20 $7.20 
Vested— $— 
Forfeited— $— 
Unvested as of December 31, 20221.20 $7.20 
Schedule of PRSUs Valuation Assumptions
The Monte Carlo Model assumptions used in valuing market condition PRSUs during the period are set forth in the following table:
Year Ending December 31,
2022
Grant Date Stock Price$9.87 
Expected volatility40.0 %
Risk-free interest rate4.4 %
Expected dividend yield (4)— %