Company: NPO
Filing Date: 2025-02-21
Form Type: 10-K
Source: 0001164863-25-000009
Chunk: 534

Company: Enpro Inc.
Filing Date: 2025-02-21
Form: 10-K
Item: Item 7
Chunk 534
---
 in 2024 and 2023 are subject to a market condition based on the performance of our stock, measured based upon a calculation of total shareholder return, compared to a group of peer companies. The fair value of these awards was determined using a Monte Carlo simulation methodology. Compensation expense for these awards was computed based upon this grant date fair value using the straight-line method over the applicable performance period. The Monte Carlo simulation model utilizes multiple input variables that determine the probability of satisfying the market condition stipulated in the award and calculates the fair value of each award. We granted performance share awards, payable in shares of our common stock, to eligible participants on February 15, 2024 and February 16, 2023.  We used the following assumptions in determining the fair value of these awards:Expected stock price volatilityRisk free interest rateShares granted February 15, 2024Enpro Inc.32.89 %4.34 %S&P 600 Capital Goods Index39.67 %4.34 %Shares granted February 16, 2023Enpro Inc.36.78 %4.34 %S&P 600 Capital Goods Index44.65 %4.34 %The expected volatility assumption for us and each member of the peer group is based on each entity’s historical stock price volatility over a period equal to the length from the valuation date to the end of the performance cycle.  The annual expected dividend yield is based on annual expected dividend payments and the stock price on the date of grant.  The risk free rate equals the yield, as of the valuation date, on zero-coupon U.S. Treasury STRIPS that have a remaining term equal to the length of the remaining performance cycle. During the first quarter of calendar years 2020, 2021, and 2022, the Company granted Performance Shares to certain key employees which are payable in cash after a three-year vesting period. The awards granted in 2020 and 2021 were settled in the 

83

first quarter of 2023 and 2024, respectively. Actual payments to be made to participating employees are based on an initial target amount, which is adjusted based on the relative three-year performance of Enpro’s share price versus a set of peer companies. Expense recognized for calendar 2024, 2023, and 2022 related to the cash-settled awards was $2.5 million, $9.1 million, and $7.8 million, respectively