For awards granted in the first quarter of 2023 and thereafter, our performance-based RSUs will vest solely based on our return on invested capital ("ROIC"). Award share payouts depend on the extent to which the ROIC performance goal has been achieved, but the final payout is adjusted by a total shareholder return ("TSR") modifier.

At the time of vesting, the vested shares of common stock are issued in the employee’s name. In addition, RSU awards are generally net settled (shares are withheld to cover the employee tax obligation). RSUs granted to directors are only time-based and generally vest on or around the first anniversary of the date of grant..

The fair value of both time-based RSUs and performance-based RSUs pertaining to internal performance metrics is determined using the closing price of our common stock on the grant date. The fair value of performance-based RSUs pertaining to TSR is estimated using a Monte Carlo simulation. Inputs and assumptions used to calculate the fair value are shown in the table below. The fair value of these RSUs is expensed over the vesting period using the straight-line method or using the graded vesting method when an employee becomes eligible to retain the award at retirement.


Six Months Ended June 30,	2023			(1)	2022
Fair value per stock award	$	116.17			$	141.95
Grant date stock price	$	111.38			$	114.52
Assumptions:
Aptar's stock price expected volatility	20.00		%		20.20		%
Expected average volatility of peer companies	39.70		%		41.70		%
Correlation assumption	33.30		%		41.20		%
Risk-free interest rate	3.83		%		2.04		%
Dividend yield assumption	1.36		%		1.33		%



	Time-Based RSUs			Performance-Based RSUs
	Units	Weighted Average Grant-Date Fair Value		Units	Weighted Average Grant-Date Fair Value
Nonvested at January 1, 2023	426,361	$	111.60	610,871	$	118.77
Granted	118,308	110.05		151,368	115.69
Vested	(176,945)	104.08		(99,878)	89.33
Forfeited	(6,880)	102.59		(132,899)	93.30
Nonvested at June 30, 2023	360,844	$	115.04	529,462	$	129.84

Included in the time-based RSU activity for the six months ended June 30, 2023 are 13,146 units granted to non-employee directors and 10,589 units vested related to non-employee directors.


Six Months Ended June 30,	2023		2022
Compensation expense	$	22,008	$	22,136
Fair value of units vested	27,178		19,724
Intrinsic value of units vested	31,809		21,481

The actual tax benefit realized for the tax deduction from RSUs was approximately $5.4 million in the six months ended June 30, 2023. As of June 30, 2023, there was $60.7 million of total unrecognized compensation cost relating to RSU awards which is expected to be recognized over a weighted-average period of 2.0 years.

Historically we issued stock options to our employees and non-employee directors. We did not issue stock options between 2019 and 2022. Stock options were awarded in the first quarter of 2023 with the exercise price equal to the market price on the date of grant based on the Black-Scholes model and generally vest over three years and expire 10 years after grant.

The Company uses historical data to estimate expected life and volatility. The weighted-average fair value of stock options granted under the stock awards plans were $19.84 and $24.23 per share for executive officers and all others employees, respectively, during the first six months of 2023. The executive awards were issued with a 10% premium. These values were estimated on the respective dates of grant using the Black-Scholes option-pricing model with the following weighted-average assumptions:


Stock Award Plans:
Six Months Ended June 30,	2023
Dividend Yield	1.41	%
Expected Stock Price Volatility	16.55	%
Risk-free Interest Rate	3.57	%
Expected Life of Option (years)	7



	Stock Awards Plans				Director Stock Option Plans
	Options		Weighted Average Exercise Price		Options		Weighted Average Exercise Price
Outstanding, January 1, 2023	2,623,944		$	73.34	51,700		$	63.91
Granted	314,736		116.20		—		—
Exercised	(350,398)		68.08		(13,700)		56.49
Forfeited or expired	(3,461)		78.51		—		—
Outstanding at June 30, 2023	2,584,821		$	79.26	38,000		$	66.59
Exercisable at June 30, 2023	2,270,679		$	74.15	38,000		$	66.59
Weighted-Average Remaining Contractual Term (Years):
Outstanding at June 30, 2023	3.8				0.9
Exercisable at June 30, 2023	3.0				0.9
Aggregate Intrinsic Value:
Outstanding at June 30, 2023	$	89,996			$	1,787
Exercisable at June 30, 2023	$	89,599			$	1,787
Intrinsic Value of Options Exercised During the Six Months Ended:
June 30, 2023	$	16,886			$	854
June 30, 2022	$	8,046			$	—


Six Months Ended June 30,	2023
Compensation expense (included in SG&A)	$	3,147
Compensation expense (included in Cost of sales)	278
Compensation expense, Total	$	3,425
Compensation expense, net of tax	3,425

The increase in stock option expense is due to the newly issued options as discussed above. Cash received from option exercises for the six months ended June 30, 2023 and 2022 was approximately $24.3 million and $11.4 million, respectively. The actual tax benefit realized for the tax deduction from option exercises was approximately $4.3 million and $1.4 million in the six months ended June 30, 2023 and 2022, respectively. As of June 30, 2023, there was $3.6 million of total unrecognized compensation cost relating to stock option awards which is expected to be recognized over a weighted-average period of 2.4 years.