Stock-Based Compensation Plans

9 Months Ended

Sep. 30, 2021

Share-based Payment Arrangement, Noncash Expense [Abstract]

Stock-Based Compensation Plans

STOCK-BASED COMPENSATION PLANS

Stock-based compensation expense consists of the following:

(In millions)	For the Three Months Ended  September 30,				For the Nine Months Ended  September 30,
	2021		2020		2021		2020
Stock options	$	14.7	$	—	$	14.7	$	—
Restricted stock	0.1		0.4		(7.8)		1.5
Restricted stock units	0.4		1.1		(1.5)		3.2
Total	$	15.2	$	1.5	$	5.4	$	4.7

During the third quarter of 2021, we recognized $14.7 million in stock-based compensation expense for stock options granted under our Amended and Restated Incentive Compensation Plan, which was approved by shareholders in July 2021. During the second quarter of 2021, we recognized an $11.5 million reversal of stock-based compensation expense due to the forfeiture of unvested restricted stock and restricted stock units upon the retirement of our former Chief Executive Officer in May 2021.

A summary of the non-vested restricted stock activity is presented below:

Restricted Stock	Number of Shares	Weighted Average Grant-Date Fair Value Per Share
Non-vested as of December 31, 2020	122,718	$	117.88
Vested	(12,130)	177.77
Forfeited	(109,054)	106.67
Non-vested as of September 30, 2021	1,534	$	441.54

A summary of the restricted stock unit activity is presented below:

Restricted Stock Units	Number of Restricted Stock Units	Weighted Average Grant-Date Fair Value Per Share
Outstanding as of December 31, 2020	412,602	$	138.65
Granted	7,302	366.07
Converted	(11,416)	190.32
Forfeited	(31,418)	110.33
Outstanding as of September 30, 2021	377,070	$	143.85

Stock option grants

From December 2020 through June 2021, we granted 770,500 time-based stock options with a weighted average exercise price of $346.94 per share to certain team members and a new member of our board of directors, subject to shareholder approval of an amendment to our Amended and Restated Incentive Compensation Plan (“Shareholder Approval”). Based on the terms of individual stock option grant agreements, the stock options:

•vest and become exercisable in four equal annual installments beginning on the first anniversary of the date on which the options were granted, based on continuous employment or service, and

•expire either six or ten years from the date of the grant.

Under GAAP, if a stock award is subject to shareholder approval, it is not considered granted for accounting purposes until that approval is received. Shareholder Approval was received at our annual meeting of shareholders on July 21, 2021. Accordingly, the accounting grant date of the 770,500 previously-awarded time-based stock options was July 21, 2021. The $145.3 million grant date fair value of those stock options is being recognized as stock-based compensation expense over the requisite service period.

During the third quarter of 2021, we granted an additional 8,000 time-based stock options with an exercise price of $563.10 per share and a grant date fair value of $171.36 per share.

We expect to recognize the future expense of the stock options as follows:

(in millions)
Year	Total Projected Expense of Stock Options
Remainder of 2021	$	18.9
2022	36.9
2023	36.3
2024	36.3
2025	2.2
Total	$	130.6