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Share-Based Compensation Plans
 12 Months Ended
Sep. 30, 2021
Share-based Payment Arrangement [Abstract]  
Share-Based Compensation Plans SHARE-BASED COMPENSATION PLANS
We grant share-based compensation to eligible participants under our 2021 Omnibus Incentive Plan (the “OIP”), which was approved by our stockholders and became effective for awards as of March 3, 2021, and prior to that under our 2012 Omnibus Incentive Plan, as amended effective March 7, 2017 (the “Prior Plan”). The OIP provides for grants of equity awards in the form of stock options, restricted stock, restricted stock units, stock appreciation rights (“SARs”), performance-based awards, other stock-based awards such as substitute awards in connection with an acquisition, and cash incentive awards. The OIP authorizes up to 2,127 shares of stock to be granted thereunder.  In addition, up to 1,072 shares that become available from awards under the Prior Plan because of events such as forfeitures, cancellations or expirations will also be available for issuance under the OIP. Shares issued under our share-based compensation plans are issued from new shares rather than from treasury shares.
STOCK OPTIONS
Non-qualified stock options issued under the OIP are generally time-based and provide for a ten-year term, with options generally vesting equally over a four-year period.
The fair value of our stock options granted during fiscal 2021, as shown below, was estimated using the Black-Scholes model with the following weighted-average assumptions:
Year Ended September 30,
202120202019
Weighted-average grant date fair value$51.92 $39.68 $27.34 
Expected term (in years)6.746.966.86
Expected volatility40 %32 %26 %
Risk-free rate of return0.7 %1.6 %2.8 %
Dividend yield1.2 %1.3 %1.6 %
A summary of stock option activity is as follows:
Stock OptionsWeighted Average Exercise PriceWeighted Average Remaining Contractual Term
(in years)		Aggregate Intrinsic Value
(in thousands)
Outstanding at September 30, 2020807 $75.87 
Granted113 147.67 
Exercised(132)54.34 
Forfeited or canceled(9)107.33 
Outstanding at September 30, 2021779 89.61 6.0$29,654 
Exercisable at September 30, 2021510 $69.52 4.9$27,763 
Expected to vest at September 30, 2021269 $127.60 8.1$1,891 
Year Ended September 30,
202120202019
Intrinsic value of options exercised$14,640 $19,077 $20,711 
Cash received from exercise of options7,190 9,350 13,193 
Tax benefit from exercise of options2,848 3,629 4,449 
Fair value of options vested3,892 3,765 4,506 
As of September 30, 2021, there was $6,183 of total unrecognized share-based compensation expense related to unvested stock options. That cost is expected to be recognized over a weighted-average period of 2.5 years.
EMPLOYEE STOCK PURCHASE PLAN (“ESPP”)
The ESPP allows all full-time, and certain part-time, employees of our Company and its designated subsidiaries to purchase shares of our common stock through payroll deductions, subject to a maximum number of shares that a participant may purchase and a maximum dollar expenditure in any six-month offering period, and certain other criteria. The provisions of the ESPP allow shares to be purchased at a price no less than the lower of 85% of the closing price at the beginning or end of each semi-annual stock purchase period. We use the Black-Scholes model for estimating the fair value of ESPP purchases. The amount of ESPP expense recognized in fiscal 2021, 2020, and 2019 was not material. As of September 30, 2021, a total of 240 shares are available for purchase under the ESPP.
RESTRICTED STOCK, RESTRICTED STOCK UNITS (“RSUs”), AND PERFORMANCE SHARE UNITS (“PSUs”)
Under the OIP, employees and non-employees may be awarded shares of restricted stock or RSUs, which generally vest over a four-year period. Restricted shares under the OIP may be purchased and placed “on deposit” by executive officers pursuant to the 2001 Deposit Share Program. Shares purchased under this Deposit Share Program receive a 50% match in restricted shares that vest at the end of a three-year period, and are subject to forfeiture upon early withdrawal of the deposit shares. The fair value of our restricted stock and RSU awards represents the closing price of our common stock on the date of award. Share-based compensation expense related to restricted stock and RSU awards is recorded net of expected forfeitures.
PSU awards are granted to certain employees and fully vest upon certification of performance achieved with respect to the PSU following the third anniversary of the performance period, according to the terms and conditions of the relevant PSU award agreement. Stock-based compensation for the awards is recognized over a three-year period based on the number of PSUs expected to vest under the awards at the end of the performance period, which is determined using certain performance measures and is re-evaluated at the end of each fiscal year through the end of the performance period. In addition, the PSUs awarded may be subject to downward or upward adjustment depending on the total shareholder return achieved by the Company during the particular performance period related to the PSUs, relative to the total shareholder return of the S&P MidCap 400 Index, as specified in the respective PSU award agreement. We estimate fair value of the PSUs at award date by using a Monte Carlo simulation model.
A summary of the activity of the restricted stock awards, RSU awards, and PSU awards is presented below:
Restricted Stock Awards and Units1
Weighted Average Grant Date Fair Value
Nonvested at September 30, 2020257 $104.83 
Granted2
101 141.70 
Vested(117)95.82 
Forfeited(8)118.64 
Nonvested at September 30, 2021233 126.61 
1.Includes PSUs.
2.Includes additional PSUs earned relating to the fiscal 2018 grant based on final performance factor.
Year Ended September 30,
202120202019
Weighted average grant date fair value$126.61 $104.83 $87.36 
Total fair value of restricted stock awards and units vested$11,702 $7,481 $11,060 
As of September 30, 2021, there was $16,130 of total unrecognized share-based compensation expense related to unvested restricted stock awards and RSUs, including PSUs, under the OIP. That cost is expected to be recognized over a weighted-average period of 2.2 years.
SHARE-BASED COMPENSATION EXPENSE
Total share-based compensation expense and the classification of that expense in the Consolidated Statements of (Loss) Income is as follows:
Year Ended September 30,
202120202019
Cost of sales$2,970 $2,863 $2,727 
Research, development and technical1,739 2,090 2,150 
Selling, general and administrative14,969 11,443 13,350 
Tax benefit(3,755)(3,162)(3,767)
Total share-based compensation expense, net of tax$15,923 $13,234 $14,460 
Total gross share-based compensation expense is attributable to the following awards:
Year Ended September 30,
202120202019
Stock Options$4,722 $4,406 $4,267 
Restricted stock awards and restricted stock units8,754 8,259 11,400 
Performance share units3,662 1,957 1,279 
ESPP2,540 1,774 1,281