Under the company’s incentive plans, stock options are typically granted at prices equal to the fair value on the grant date and have a maximum term of 10 years. Stock options generally vest over a three-year period from the grant date. There were 0.2 million stock options that were exercised in fiscal year 2017. No stock options were granted or exercised during fiscal year 2018. No stock options were granted in fiscal year 2017. There were no stock options outstanding as of September 30, 2019 and September 30, 2018.

Stock-based compensation is measured at the grant date based on the fair value of the award and is generally recognized as expense ratably on a straight-line basis over the requisite service period, which is generally the vesting period of the respective award. No compensation cost is ultimately recognized for awards for which employees do not render the requisite service and that are forfeited.

Compensation expense is recognized for the non-vested portion of previously issued stock options. No compensation expense associated with the expensing of stock options was recognized in fiscal years 2019, 2018 or 2017.

The company has granted shares of restricted stock and restricted share units to certain employees and non-employee members of the Board of Directors in accordance with the existing plans. The company measures the grant date fair value of these stock-based awards at the market price of the company’s common stock as of the date of the grant. Employee awards typically vest at the end of three years and are subject to continued employment by the employee. Compensation cost associated with stock-based awards is recognized ratably over the vesting period. Cash dividends on the restricted stock, if any, are reinvested in additional shares of common stock during the vesting period.

The following is a rollforward of the company’s non-vested restricted stock and restricted share units as of September 30, 2019, and the activity during fiscal year 2019 is summarized as follows (shares in thousands):



	Number of Shares		Weighted-Average Grant-Date Fair Value
Balance at September 30, 2018	1,464		$	14.59
Granted	523		17.24
Vested	(563	)	9.78
Forfeited	(104	)	16.86
Balance at September 30, 2019	1,320		17.55

In fiscal years 2019, 2018 and 2017, the company granted 0.5 million, 0.4 million, and 0.6 million shares of restricted stock and restricted share units, respectively. The grant date weighted average fair value of these restricted share units was $17.24, $24.93 and $13.29 for shares of restricted stock and restricted share units granted in fiscal years 2019, 2018 and 2017, respectively. The number of non-vested restricted shares and restricted share units as of September 30, 2019 was 1.3 million. The per share weighted average fair value of these non-vested shares was $17.55.

As of September 30, 2019, there was $7 million of total unrecognized compensation costs related to non-vested restricted shares and restricted share units. These costs are expected to be recognized over a weighted average period of 1.69 years. Total compensation expense recognized for restricted stock and restricted share units was $8 million, $8 million and $7 million in fiscal years 2019, 2018 and 2017, respectively.

The company has granted performance share units to all executives eligible to participate in the LTIP. The company measures the grant date fair value of these units-based awards at the market price of the company’s common stock as of the date of the grant. Compensation cost associated with these stock-based awards is recognized ratably over the vesting period.

In November 2018, the Board of Directors approved a grant of performance share units to all executives eligible to participate in the LTIP. Each performance share unit represents the right to receive one share of common stock or its cash equivalent upon achievement of certain performance and time vesting criteria. The fair value of each performance share unit was $16.50, which was the company’s share price on the grant date of December 1, 2018. The Board of Directors also approved a grant of 0.4 million restricted share units to these executives. The restricted share units vest at the earlier of three years from the date of grant or upon termination of employment with the company under certain circumstances. The fair value of each restricted share unit was $16.50, which was the company's share price on the grant date of December 1, 2018.

The actual number of performance share units that will vest depends upon the company’s performance relative to the established performance metrics for the three-year performance period of October 1, 2018 to September 30, 2021, measured at the end of the performance period. The number of performance share units that vest will depend on adjusted EBITDA margin and adjusted diluted earnings per share from continuing operations at the following weights: 50% associated with achieving an adjusted EBITDA margin target and 50% associated with achieving an adjusted diluted earnings per share from continuing operations target. The number of performance share units that vest will be between 0% and 200% of the grant date amount of 0.5 million performance share units.

In November 2017, the Board of Directors approved a grant of performance share units to all executives eligible to participate in the LTIP. Each performance share unit represents the right to receive one share of common stock or its cash equivalent upon achievement of certain performance and time vesting criteria. The fair value of each performance share unit was $24.79, which was the company’s share price on the grant date of December 1, 2017. The Board of Directors also approved a grant of 0.3 million restricted share units to these executives. The restricted share units vest at the earlier of three years from the date of grant or upon termination of employment with the company under certain circumstances. The fair value of each restricted share unit was $24.79, which was the company's share price on the grant date of December 1, 2017.

The actual number of performance share units that will vest depends upon the company’s performance relative to the established performance metrics for the three-year performance period of October 1, 2017 to September 30, 2020, measured at the end of the performance period. The actual number of performance share units that will vest will depend on adjusted EBITDA margin and adjusted diluted earnings per share from continuing operations at the following weights: 50% associated with achieving an adjusted EBITDA margin target and 50% associated with achieving an adjusted diluted earnings per share from continuing operations target. The number of performance share units that vest will be between 0% and 200% of the grant date amount of 0.3 million performance share units.

In November 2016, the Board of Directors approved a grant of performance share units to all executives eligible to participate in the LTIP. Each performance share unit represents the right to receive one share of common stock or its cash equivalent upon achievement of certain performance and time vesting criteria. The fair value of each performance share unit was $12.77, which was the company’s share price on the grant date of December 1, 2016. The Board of Directors also approved a grant of 0.5 million restricted share units to these executives. The restricted share units vest at the earlier of three years from the date of grant or upon termination of employment with the company under certain circumstances. The fair value of each restricted share unit was $12.77, which was the company's share price on the grant date of December 1, 2016.

The actual number of performance share units that vested depended upon the company’s performance relative to the established M2019 goals for the three-year performance period of October 1, 2016 to September 30, 2019, which was measured at the end of the performance period.

The following is a rollforward of the company’s non-vested performance share units as of September 30, 2019, and the activity during fiscal year 2019 is summarized as follows (shares in thousands):



	Number of Shares		Weighted-Average Grant-Date Fair Value
Balance at September 30, 2018	1,612		$	14.18
Granted	1,172		13.39
Vested	(1,305	)	10.23
Forfeited	(154	)	16.75
Balance at September 30, 2019	1,325		17.08

There were 1.2 million performance share units granted during fiscal 2019 which includes the performance achievement of 0.6 million performance share units related to the fiscal year 2016 to 2018 LTIP cycle. There were 1.3 million of non-vested performance shares as of September 30, 2019. The per share weighted average fair value of the performance share units was $17.08 as of September 30, 2019.

For the years ended September 30, 2019, 2018 and 2017, compensation cost recognized related to the performance share units was $10 million, $14 million and $14 million, respectively. As of September 30, 2019, there were $9 million of total unrecognized compensation costs related to non-vested performance share unit equity compensation arrangements. These costs are expected to be recognized over a weighted average period of 1.69 years.