Stock-Based Compensation |
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| Share-Based Payment Arrangement [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Stock-Based Compensation | Stock-Based Compensation Following the U.S. Listing, the following modifications were made to the existing stock-based compensation plans, effective March 2, 2026: •all performance conditions were deemed to have been met at 85.5% of maximum; and •all awards will be settled net of any tax arising at the time of vesting. These modifications impact all liability-classified awards and those PSU equity-classified awards granted under the Ashtead Plan. In accordance with ASC 718, Compensation – Stock Compensation, all liability-classified awards were fair valued on the modification date and subsequently reclassified to equity-classified awards. All existing equity-classified awards impacted were also fair valued on the modification date and an incremental compensation cost recognized from the date of modification to the end of the relevant service period. The total incremental compensation cost recognized in the year ended April 30, 2026 was $15 million, with $59 million reclassified to equity. Liability-classified awards A summary of the transactions within the Company's liability-classified long-term incentive awards is as follows:
(1)All awards granted under the Ashtead Plan. (2)32,287 awards reclassified to equity in January 2026 relating to participants that chose to defer in accordance with their 409A plan. These awards are reclassified to equity six months after the performance and service conditions were met if they have not been exercised. The remaining 1,464,823 awards were reclassified upon modification of the scheme on March 2, 2026. The total fair value of the stock-based compensation awards related to liability-classified long-term incentive awards that vested was $23 million, $98 million and $33 million during the years ended April 30, 2026, 2025 and 2024, respectively. As of April 30, 2026, there were no liability-classified awards under the long-term incentive plans. As of April 30, 2025, $14 million was recognized as a long-term liability for the liability-classified awards under the long-term incentive plans in the “Other long-term liabilities” and $17 million was recognized as a short-term liability for the liability-classified awards under the long-term incentive plans in the “Accrued expenses and other liabilities” on the consolidated balance sheet. Equity-classified awards A summary of the transactions within the Company's equity-classified long-term incentive awards is as follows:
(1)We have revised the weighted-average fair value of awards outstanding as of April 30, 2025 from $44.41 to $60.97 to correct the amount previously disclosed in our Registration Statement on Form 10. This revision does not affect the Company's consolidated balance sheets, statement of income, or statement of cash flows, and is limited to the disclosures above. (2)199,852 awards granted under the Ashtead Plan and 657,681 awards granted under the 2026 Plan. (3)32,287 awards reclassified from liability-classified awards in January 2026 relating to participants that chose to defer to accordance with their 409A plan. These awards are reclassified to equity six months after the performance and service conditions were met if they have not been exercised. The remaining 1,464,823 awards were reclassified upon modification of the scheme on March 2, 2026. The total fair value of the stock-based compensation awards that vested was $5 million, $8 million and $6 million during the years ended April 30, 2026, 2025 and 2024, respectively. As of April 30, 2026, there was $95 million of total unrecognized compensation cost related to the equity-classified awards expected to be recognized over a weighted-average period of one year. The weighted average remaining contractual term of the equity-classified share options outstanding as of April 30, 2026 was eight years. Stock-based compensation expense The expenses and associated income tax benefits recognized are as follows:
The Company’s stock-based compensation expense is included in “Selling, general and administrative expenses” in the Company’s consolidated statements of income. Assumptions The following assumptions were used in the Monte Carlo simulation model for the long-term incentive awards:
On March 2, 2026, all existing plans were modified. At this date, the fair value of the equity-classified awards was $73.79 per share.
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