SHARE-BASED COMPENSATION (Tables)

12 Months Ended

Dec. 31, 2022

Share-Based Payment Arrangement [Abstract]

Share-based compensation related to equity and liability awards

Share-based compensation expense related to equity and liability awards is included in the following line items in the Consolidated Statements of Operations:


(in millions)	Year Ended December 31, 2022		Year Ended December 31, 2021		Year Ended December 31, 2020
Cost of sales	$	(0.3)	$	7.5	$	—
Selling, general and administrative expenses	56.5		107.7		67.5
Total	$	56.2	$	115.2	$	67.5

Share-based compensation expense by type of award is as follows:


(in millions)	Year Ended December 31, 2022		Year Ended December 31, 2021		Year Ended December 31, 2020
Management equity incentive plan(1)	$	—	$	37.5	$	67.5
Restricted shares(1)	40.2		35.2		—
Restricted share units	10.5		9.0		—
Performance share units	3.2		—		—
Share options	0.9		—		—
Cash-settled long-term incentive plan	1.7		30.2		—
Cash-settled restricted share units	(0.3)		3.3		—
	$	56.2	$	115.2	$	67.5

The unrecognized compensation expense as of December 31, 2022 related to nonvested equity awards and the weighted-average period they are expected to be recognized:


	Unrecognized Compensation Expense (Millions)		Weighted-Average Period (Years)
Restricted shares	$	20.8	1.78
Restricted share units	13.6		1.96
Performance share units	6.5		2.00
Share options	1.9		2.10
	$	42.8

Summary of changes in outstanding nonvested RSUs

A summary of changes in outstanding nonvested Restricted Shares is as follows:


	Number of Awards	Weighted Average Grant Date Fair Value
Nonvested at January 1, 2022	5,729,925	$	15.00
Granted	—	—
Vested	(3,105,535)	15.00
Forfeited	(12,779)	15.00
Nonvested at December 31, 2022	2,611,611	$	15.00

A summary of changes in outstanding nonvested RSUs is as follows:


	Number of Awards	Weighted Average Grant Date Fair Value
Nonvested at January 1, 2022	1,455,150	$	15.01
Granted	1,187,073	10.30
Vested	(138,036)	14.80
Forfeited	(142,277)	13.04
Nonvested at December 31, 2022	2,361,910	$	13.10

Schedule of nonvested performance-based units activity

A summary of changes in outstanding nonvested PSUs is as follows:


	Number of Awards	Weighted Average Grant Date Fair Value
Nonvested at January 1, 2022	—	$	—
Granted	911,075	11.37
Vested	—	—
Forfeited	(64,709)	11.32
Nonvested at December 31, 2022	846,366	$	11.37

Schedule of share-based payment award, stock options, valuation assumptions

The table below presents the weighted average assumptions and related valuations for Share Options:


	Year Ended December 31, 2022
Expected volatility	52.34		%
Expected dividend yield	—		%
Expected life (in years)	8.4
Risk-free interest rate	1.42		%
Weighted-average grant date fair value	$	10.73

Summary of share option activity

A Summary of Share Option activity is as follows:


	Shares	Weighted-Average Exercise Price		Aggregate Intrinsic Value (millions)		Weighted-Average Remaining Term (Years)
Outstanding at January 1, 2022	—	$	—
Granted	491,555	$	10.71
Exercised	—	$	—
Forfeited and expired	(26,276)	$	10.73
Outstanding at December 31, 2022	465,279	$	10.70	$	—	9.1
Exercisable at December 31, 2022	—	$	—	$	—	—
Expected to vest at December 31, 2022	465,279	$	10.70	$	—	9.1

Diversey Holdings, Ltd. 10-K