Herbalife Ltd. Quarterly report pursuant to Section 13 or 15(d)

Quarterly report pursuant to Section 13 or 15(d)

Share-Based Compensation

Share-Based Compensation

3 Months Ended

Mar. 31, 2021

Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]

7. Share-Based Compensation

The Company has share-based compensation plans, which are more fully described in Note 9, Share-Based Compensation, to the Consolidated Financial Statements included in the 2020 10-K. During the three months ended March 31, 2021, the Company granted restricted stock units subject to service conditions and restricted stock units subject to service and performance conditions.

Share-based compensation expense amounted to $13.3 million and $10.3 million for the three months ended March 31, 2021 and 2020, respectively. As of March 31, 2021, the total unrecognized compensation cost related to all non-vested stock awards was $118.6 million and the related weighted-average period over which it is expected to be recognized is approximately 2.1 years.

The following table summarizes the activity for stock appreciation rights, or SARs, under all share-based compensation plans for the three months ended March 31, 2021:


	Number of Awards			Weighted-Average Exercise Price Per Award		Weighted-Average Remaining Contractual Term	Aggregate Intrinsic Value(1)
	(in thousands)						(in millions)
Outstanding as of December 31, 2020(2)(3)		3,737		$	27.23	4.6 years	$	77.8
Granted		—		$	—
Exercised(4)		(560	)	$	29.65
Forfeited		—		$	—
Outstanding as of March 31, 2021(2)(3)		3,177		$	26.81	4.4 years	$	55.8
Exercisable as of March 31, 2021(5)		3,177		$	26.81	4.4 years	$	55.8
Vested and expected to vest as of March 31, 2021		3,177		$	26.81	4.4 years	$	55.8

(1) The intrinsic value is the amount by which the current market value of the underlying stock exceeds the exercise price of the SARs.

(2) Includes less than 0.1 million market condition SARs as of both March 31, 2021 and December 31, 2020.

(3) Includes 0.8 million and 1.1 million performance condition SARs as of March 31, 2021 and December 31, 2020, respectively, which represents the maximum amount that can vest.

(4) Includes 0.3 million performance condition SARs.

(5) Includes less than 0.1 million market condition and 0.8 million performance condition SARs.

There were no SARs granted during the three months ended March 31, 2021 and 2020. The total intrinsic value of SARs exercised during the three months ended March 31, 2021 and 2020 was $13.8 million and $1.6 million, respectively.

The following table summarizes the activities for stock units under all share-based compensation plans for the three months ended March 31, 2021:


	Number of Shares				Weighted-Average Grant Date Fair Value Per Share
	(in thousands)
Outstanding and nonvested as of December 31, 2020(1)		3,068		$		44.01
Granted(2)		1,460		$		48.32
Vested		(764	)	$		43.47
Forfeited		(31	)	$		43.82
Outstanding and nonvested as of March 31, 2021(1)		3,733		$		45.81
Expected to vest as of March 31, 2021(3)		3,263		$		45.36

(1) Includes 1,141,028 and 712,596 performance-based stock unit awards as of March 31, 2021 and December 31, 2020, respectively, which represents the maximum amount that can vest.

(2) Includes 428,432 performance-based stock unit awards.

(3) Includes 753,826 performance-based stock unit awards.

The total vesting date fair value of stock units which vested during the three months ended March 31, 2021 and 2020 was $35.5 million and $9.6 million, respectively.