Stock-Based Compensation (Tables)

3 Months Ended

Dec. 31, 2019

Share-based Payment Arrangement, Noncash Expense [Abstract]

Stock Based Compensation Included in Consolidated Statements of Operations

The amounts included in the consolidated statements of operations related to stock-based compensation are as follows (dollars in thousands): 

	Three Months Ended December 31,
	2019		2018
Cost of hosting and professional services	$	5,541	$	6,957
Cost of product and licensing	129		264
Cost of maintenance and support	393		(234		)
Research and development	8,704		5,376
Sales and marketing	7,028		8,252
General and administrative	9,438		8,882
Total	$	31,233	$	29,497

Summary of Stock Options Activity

The table below summarizes activities related to stock options for the three months ended December 31, 2019:

	Number of Shares		Weighted Average Exercise Price		Weighted Average Remaining Contractual Term	Aggregate Intrinsic Value (a)
Outstanding at September 30, 2019	11,302		$	20.04
Exercised	(3,207	)	$	17.18
Expired	—		$	—
Equitable Adjustment - Cerence Spin-off (b)	1,883
Outstanding at December 31, 2019	9,978		$	17.18	2.3 years	$	—
Exercisable at December 31, 2019	9,978		$	17.18	2.3 years	$	—
Exercisable at December 31, 2018	14,616		$	17.13	2.9 years	$	—

^(a) 

The aggregate intrinsic value in this table represents any excess of the closing market price of our common stock as of December 31, 2019 ($17.83) over the exercise price of the underlying options.

Summary of Activity Relating to Restricted Units and Restricted Stock Awards

he table below summarizes activities relating to restricted units for the three months ended December 31, 2019:

	Number of Shares Underlying Restricted Units — Performance-Based Awards		Number of Shares Underlying Restricted Units — Time-Based Awards
Outstanding at September 30, 2019	1,991,325		8,998,944
Granted	1,060,384		3,934,253
Earned/released	(303,198	)	(5,274,466	)
Forfeited	(418,834	)	(1,253,558	)
Equitable Adjustment - Cerence Spin-off (b)	303,074		1,316,006
Outstanding at December 31, 2019	2,632,751		7,721,179
Weighted average remaining recognition period of outstanding Restricted Units	2.1 years		1.9 years
Unrecognized stock-based compensation expense of outstanding Restricted Units	$27.2 million		$74.2 million
Aggregate intrinsic value of outstanding Restricted Units (a)	$46.9 million		$137.7 million

^(a)  The aggregate intrinsic value in this table represents any excess of the closing market price of our common stock as of December 31, 2019 ($17.83) over the purchase price of the underlying restricted units.

^(b) 

Effective with the spin-off of Automotive on October 1, 2019, outstanding equity awards were equitably adjusted by a conversion ratio of 1.16667 per one Nuance share then held.

Summary of Weighted-Average Grant-Date Fair Value and Intrinsic Value of Restricted Units and Restricted Stock Awards Vested

summary of the weighted-average grant-date fair value of restricted units granted, and the aggregate intrinsic value of restricted units vested during the periods noted is as follows: 

	Three Months Ended December 31,
	2019		2018
Weighted-average grant-date fair value per share	$	17.08	$	16.43
Total intrinsic value of shares vested (in millions)	$	95.4	$	82.4

Performance-based restricted units outstanding as of December 31, 2019 and issued in fiscal year 2019 include performance goals based on total shareholder return relative to our peers during the performance period. The awards actually earned will be up to two hundred percent of the target number of the performance-based Restricted Units. Compensation expense is recorded ratably over the performance period of the award based on the estimated grant date fair value estimated at the grant date using a Monte Carlo simulation model, which included the following assumptions:

	December 31, 2019		December 31, 2018
Dividend yield	0.0	%	0.0	%
Expected volatility	27.73	%	27.86% - 30.85%
Risk-free interest rate	1.62	%	2.72% - 3.02%
Expected term (in years)	3		1 - 3