Share-Based Compensation Plans (Tables)
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12 Months Ended |
Sep. 30, 2021 |
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| Share-based Payment Arrangement [Abstract] |
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| Fair Value Assumptions and Methodology |
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, | | 2021 | | 2020 | | 2019 | | Weighted-average grant date fair value | $ | 51.92 | | | $ | 39.68 | | | $ | 27.34 | | | Expected term (in years) | 6.74 | | 6.96 | | 6.86 | | Expected volatility | 40 | % | | 32 | % | | 26 | % | | Risk-free rate of return | 0.7 | % | | 1.6 | % | | 2.8 | % | | Dividend yield | 1.2 | % | | 1.3 | % | | 1.6 | % |
A summary of stock option activity is as follows: | | | | | | | | | | | | | | | | | | | | | | | | | Stock Options | | Weighted Average Exercise Price | | Weighted Average Remaining Contractual Term
(in years) | | Aggregate Intrinsic Value
(in thousands) | | Outstanding at September 30, 2020 | 807 | | | $ | 75.87 | | | | | | | Granted | 113 | | | 147.67 | | | | | | | Exercised | (132) | | | 54.34 | | | | | | | Forfeited or canceled | (9) | | | 107.33 | | | | | | | Outstanding at September 30, 2021 | 779 | | | 89.61 | | | 6.0 | | $ | 29,654 | | | | | | | | | | | Exercisable at September 30, 2021 | 510 | | | $ | 69.52 | | | 4.9 | | $ | 27,763 | | | | | | | | | | | Expected to vest at September 30, 2021 | 269 | | | $ | 127.60 | | | 8.1 | | $ | 1,891 | |
| | | | | | | | | | | | | | | | | | | Year Ended September 30, | | 2021 | | 2020 | | 2019 | | Intrinsic value of options exercised | $ | 14,640 | | | $ | 19,077 | | | $ | 20,711 | | | Cash received from exercise of options | 7,190 | | | 9,350 | | | 13,193 | | | Tax benefit from exercise of options | 2,848 | | | 3,629 | | | 4,449 | | | Fair value of options vested | 3,892 | | | 3,765 | | | 4,506 | |
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| Summary of Restricted Stock Awards and Restricted Stock Unit Awards |
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, 2020 | 257 | | | $ | 104.83 | | Granted2 | 101 | | | 141.70 | | | Vested | (117) | | | 95.82 | | | Forfeited | (8) | | | 118.64 | | | Nonvested at September 30, 2021 | 233 | | | 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, | | 2021 | | 2020 | | 2019 | | 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 | |
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| 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, | | 2021 | | 2020 | | 2019 | | Cost of sales | $ | 2,970 | | | $ | 2,863 | | | $ | 2,727 | | | Research, development and technical | 1,739 | | | 2,090 | | | 2,150 | | | Selling, general and administrative | 14,969 | | | 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, | | 2021 | | 2020 | | 2019 | | Stock Options | $ | 4,722 | | | $ | 4,406 | | | $ | 4,267 | | | Restricted stock awards and restricted stock units | 8,754 | | | 8,259 | | | 11,400 | | | Performance share units | 3,662 | | | 1,957 | | | 1,279 | | | ESPP | 2,540 | | | 1,774 | | | 1,281 | |
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