On February 9, 2016, the shareholders of the Company approved the Amended and Restated Beacon Roofing Supply, Inc. 2014 Stock Plan (the “2014 Plan”). The 2014 Plan provides for discretionary awards of stock options, stock awards, restricted stock units, and stock appreciation rights for up to 5,000,000 shares of common stock to selected employees and non-employee directors. The 2014 Plan mandates that all forfeited, expired, and withheld shares, including those from the predecessor plans, be returned to the 2014 Plan and made available for issuance.

In December 2019, the Company’s Board of Directors adopted the Company’s Second Amended and Restated 2014 Plan, with a share increase of an additional 4,850,000 shares to be effective upon its approval by the shareholders at the Company’s Annual Meeting of Shareholders scheduled to be held on February 11, 2020. As of December 31, 2019, there were 680,568 shares of common stock available for issuance.

Prior to the 2014 Plan, the Company maintained the amended and restated Beacon Roofing Supply, Inc. 2004 Stock Plan (the “2004 Plan”). Upon shareholder approval of the 2014 Plan, the Company ceased issuing equity awards from the 2004 Plan and mandated that all future equity awards will be issued from the 2014 Plan.

For all equity awards granted prior to October 1, 2014, in the event of a change in control of the Company, all awards are immediately vested. Beginning in fiscal 2015, equity awards contained a “double trigger” change in control mechanism. Unless an award is continued or assumed by a public company in an equitable manner, an award shall become fully vested immediately prior to a change in control (at 100% of the grant target in the case of a performance-based restricted stock unit award). If an award is so continued or assumed, vesting will continue in accordance with the terms of the award, unless there is a qualifying termination within one-year following the change in control, in which event the award shall immediately become fully vested (at 100% of the grant target in the case of a performance-based restricted stock unit award).

Non-qualified stock options granted to employees generally expire 10 years after the grant date and are subject to continued employment and vest evenly in three annual installments over the three-year period following the grant date.

The fair value of the stock options granted during the three months ended December 31, 2019 were estimated on the date of grant using the Black-Scholes option-pricing model with the following weighted-average assumptions:

The following table summarizes all stock option activity for the three months ended December 31, 2019 (in thousands, except share, per share, and time period amounts):

	Options Outstanding			Weighted- Average Exercise Price		Weighted- Average Remaining Contractual Term (Years)		Aggregate Intrinsic Value¹
Balance as of September 30, 2019		2,339,489		$	32.61		6.1	$	12,034
Granted		407,736			33.47
Exercised		(48,122	)		18.18
Canceled/Forfeited		(10,906	)		37.79
Expired		(2,534	)		14.45
Balance as of December 31, 2019		2,685,663		$	32.99		6.5	$	9,099
Vested and expected to vest after December 31, 2019		2,616,347		$	33.01		6.5	$	8,979
Exercisable as of December 31, 2019		1,759,950		$	33.14		5.1	$	7,278

During the three months ended December 31, 2019 and 2018, the Company recorded stock-based compensation expense related to stock options of $1.1 million and $1.0 million, respectively. As of December 31, 2019, there was $8.1 million of unrecognized compensation cost related to unvested stock options, which is expected to be recognized over a weighted-average period of 2.2 years.

The following table summarizes additional information on stock options for the periods presented (in thousands, except per share amounts):

	Three Months Ended December 31,
	2019		2018
Weighted-average fair value of stock options granted	$	10.70	$	8.75
Total grant date fair value of stock options vested		3,902		3,680
Total intrinsic value of stock options exercised		665		712

Restricted stock unit (“RSU”) awards granted to employees are subject to continued employment and generally vest on the third anniversary of the grant date. The Company also grants certain RSU awards to management that contain one or more additional vesting conditions tied directly to a defined performance metric for the Company. The actual number of RSUs that will vest can range from 0% to 200% of the original grant amount, depending upon the terms of the award and actual Company performance above or below the established performance metric targets. The Company estimates performance in relation to the defined targets when determining the projected number of RSUs that are expected to vest and calculating the related stock-based compensation expense.

RSUs granted to non-employee directors are subject to continued service and vest on the first anniversary of the grant date (except under certain conditions). Generally, the common shares underlying the RSUs are not eligible for distribution until the non-employee director’s service on the Board has terminated, and for non-employee director RSU grants made prior to fiscal year 2014, the share distribution date is six months after the director’s termination of service on the board. Beginning in fiscal year 2016, the Company enacted a policy that allows any non-employee directors who have Beacon equity holdings (defined as common stock and outstanding vested equity awards) with a total fair value that is greater than or equal to five times the annual Board cash retainer to elect to have their RSU grant settle simultaneously with vesting. Eligibility is determined annually based on the value of the non‑employee directors’ Beacon equity holdings as of December 1. Elections must be made by December 31 and apply only to the succeeding RSU grant following the election.

The following table summarizes all restricted stock unit activity for the three months ended December 31, 2019:

	RSUs Outstanding			Weighted-Average Grant Date Fair Value
Balance as of September 30, 2019		1,123,358		$	37.48
Granted		378,320			33.47
Released		(199,960	)		40.24
Canceled/Forfeited		(2,906	)		29.15
Balance as of December 31, 2019		1,298,812		$	35.75
Vested and expected to vest after December 31, 2019		1,077,493		$	36.98

During the three months ended December 31, 2019 and 2018, the Company recorded stock-based compensation expense related to restricted stock units of $4.1 million and $2.4 million, respectively. As of December 31, 2019, there was $22.3 million of unrecognized compensation cost related to unvested restricted stock units, which is expected to be recognized over a weighted-average period of 2.2 years.

The following table summarizes additional information on RSUs for the periods presented (in thousands, except per share amounts):

	Three Months Ended December 31,
	2019		2018
Weighted-average fair value of RSUs granted	$	33.47	$	27.28
Total grant date fair value of RSUs vested		8,082		14,840
Total intrinsic value of RSUs released		6,826		11,160