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Stock-Based Compensation Plans
 12 Months Ended
Sep. 30, 2023
Share-Based Payment Arrangement [Abstract]  
Stock-Based Compensation STOCK-BASED COMPENSATION
Long-Term Incentive Plans
The Company’s employees participate in various Company long-term incentive plans (the “Long-Term Incentive Plans”). On January 27, 2022, the Company’s shareholders approved the 2021 Long-Term Incentive Plan (the “2021 Plan”), which permits the issuance of stock-based compensation awards of up to 2.4 million shares, plus shares remaining to be issued under the 2019 Long-Term Incentive Plan (including any shares assumed thereunder from the 2016 and 2012 Long-Term Incentive
Plans) which were transferred to the 2021 Plan upon its effectiveness as well as shares underlying awards previously issued under any of the Long-Term Incentive Plans which awards are later forfeited. Awards issued under the Long-Term Incentive Plans have a maximum term of 10 years.
Total compensation cost for the Company’s cash and non-cash stock-based compensation awards recognized in the years ended September 30, 2023, 2022 and 2021 was $77.8, $66.4 and $49.7, respectively, and the related recognized deferred tax benefit for each of those periods was approximately $10.5, $9.1 and $5.8, respectively. As of September 30, 2023, the total compensation cost related to Post’s non-vested awards not yet recognized was $77.2, which is expected to be recognized over a weighted-average period of 1.3 years.
BellRing Spin-off
In connection with the BellRing Spin-off, adjustments were made to the terms of outstanding equity-based awards (the “Equity Awards”) to preserve the intrinsic value of the Equity Awards and to participants’ accounts under the deferred compensation plans maintained by the Company with respect to notional investments in Post common stock (the “Deferred Compensation Accounts”). The adjustments to the Equity Awards and Deferred Compensation Accounts were based on the volume weighted average price of a share of Post common stock during the five trading day period prior to and including March 10, 2022 and the volume weighted average price of a share of Post common stock during the five trading day period immediately following March 10, 2022.
The adjustments to the Equity Awards and Deferred Compensation Accounts had an immaterial impact on the Company’s Consolidated Statements of Operations for the years ended September 30, 2023 and 2022.
Stock Appreciation Rights (“SARs”)
$ in millions, except price per share
SARs
Weighted-
Average
Exercise
Price Per Share
Weighted-
Average
Remaining
Contractual
Term in Years		Aggregate
Intrinsic
Value
Outstanding at September 30, 202281,554 $33.42 
Granted— 
Exercised(29,656)28.28 
Forfeited— 
Expired— 
Outstanding at September 30, 202351,898 36.35 1.23$2.6 
Vested and expected to vest as of September 30, 202351,898 36.35 1.232.6 
Exercisable at September 30, 202351,898 36.35 1.232.6 
Upon exercise of each SAR, the holder will receive the number of shares of Post common stock equal in value to the difference between the exercise price and the fair market value at the date of exercise, less all applicable taxes. The total intrinsic value of SARs exercised was $1.9, $3.0 and $3.2 during the years ended September 30, 2023, 2022 and 2021, respectively. There were no SARs granted during the years ended September 30, 2023, 2022 or 2021.
Stock Options
$ in millions, except price per share
Stock Options
Weighted-
Average
Exercise
Price Per Share
Weighted-
Average
Remaining
Contractual
Term in Years		Aggregate
Intrinsic
Value
Outstanding at September 30, 20221,011,315 $48.75 
Granted— — 
Exercised(262,607)39.57 
Forfeited— — 
Expired— — 
Outstanding at September 30, 2023748,708 51.96 3.63$25.3 
Vested and expected to vest as of September 30, 2023748,708 51.96 3.6325.3 
Exercisable at September 30, 2023748,708 51.96 3.6325.3 
The fair value of each stock option was estimated on the grant date using the Black-Scholes Model. The Company used the simplified method for estimating a stock option term as it did not have sufficient historical stock option exercise experience
upon which to estimate an expected term. The expected term was estimated based on the award’s vesting period and contractual term. Expected volatilities were based on historical volatility trends and other factors. The risk-free rate was the interpolated U.S. Treasury rate for a term equal to the expected term. There were no stock options granted during the years ended September 30, 2023, 2022 or 2021.
The total intrinsic value of stock options exercised was $14.1, $14.1 and $46.4 in the years ended September 30, 2023, 2022 and 2021, respectively. The Company received proceeds from the exercise of stock options of $3.9, $4.9 and $7.6 during the years ended September 30, 2023, 2022 and 2021, respectively.
Restricted Stock Units (“RSUs”)
RSUs
Weighted-
Average
Grant Date Fair Value Per Share
Nonvested at September 30, 20221,348,806 $68.38 
Granted526,035 90.85 
Vested(763,124)67.34 
Forfeited(51,485)74.06 
Nonvested at September 30, 20231,060,232 79.99 
The grant date fair value of each RSU award was determined based upon the closing price of the Company’s common stock on the date of grant. The weighted-average grant date fair value of nonvested RSUs was $79.99, $68.38 and $97.23 at September 30, 2023, 2022 and 2021, respectively. The total vest date fair value of RSUs that vested during fiscal 2023, 2022 and 2021 was $68.9, $35.1 and $49.8, respectively.
Cash-Settled Restricted Stock Units (“Cash RSUs”)
Cash RSUs
Weighted-
Average
Grant Date Fair Value Per Share
Nonvested at September 30, 202229,063 $34.68 
Granted— — 
Vested(16,015)34.68 
Forfeited— — 
Nonvested at September 30, 202313,048 34.68 
        
At September 30, 2023, the 13,048 nonvested Cash RSUs were valued at the greater of the Company’s closing stock price or the grant price of $34.68. Cash used by the Company to settle Cash RSUs was $1.4, $1.1 and $1.1 for the years ended September 30, 2023, 2022 and 2021, respectively.
Earnings-Based Performance Restricted Stock Units (“Earnings PRSUs”)
Earnings PRSUs
Weighted-
Average
Grant Date Fair Value Per Share
Nonvested at September 30, 2022272,427 $70.46 
Granted142,939 94.09
Vested(148,531)70.36 
Forfeited(7,293)83.83 
Nonvested at September 30, 2023259,542 83.20 
During the years ended September 30, 2023, 2022 and 2021, the Company granted Earnings PRSUs to certain employees. These awards will be earned based on reaching certain earnings-based targets over a period ranging from one to three years. The grant date fair value of each Earnings PRSU award was determined based upon the closing price of the Company’s common stock on the date of grant and the assumption that the Company would meet the full earnings-based targets. The Company reassesses the probability of achieving the earnings-based targets each quarterly reporting period and adjusts compensation cost accordingly. The weighted-average grant date fair value of nonvested Earnings PRSUs was $83.20, $70.46 and $98.33 at September 30, 2023, 2022 and 2021, respectively. The total vest date fair value of Earnings PRSUs that vested during the year ended September 30, 2023 was $14.1. No Earnings PRSUs vested during the years ended September 30, 2022 or 2021.
Market-Based Performance Restricted Stock Units (“Market PRSUs”)
Market PRSUs
Weighted-
Average
Grant Date Fair Value Per Share
Nonvested at September 30, 2022374,402 $106.10 
Granted142,843 156.05 
Vested— — 
Forfeited(23,140)102.95 
Nonvested at September 30, 2023494,105 120.69 
The total vest date fair value of Market PRSUs that vested during fiscal 2022 and 2021 was $6.6 and $3.9, respectively. No Market PRSUs vested during the year ended September 30, 2023.
During the years ended September 30, 2023, 2022 and 2021, the Company granted Market PRSUs to certain employees, which will be earned by comparing Post’s total shareholder return (“TSR”) during a three year period to the respective TSRs of companies in a performance peer group. Based upon Post’s ranking in its performance peer group when comparing TSRs, a recipient of a Market PRSU grant may earn a total award ranging from 0% to 260% of the target award. The fair value of each Market PRSU was estimated on the grant date using a Monte Carlo simulation. The weighted-average assumptions for Market PRSUs granted during the years ended September 30, 2023, 2022 and 2021 are summarized in the table below.
202320222021
Expected term (in years)3.03.03.0
Expected stock price volatility29.1%27.7%28.3%
Risk-free interest rate4.1%0.9%0.2%
Expected dividends0%0%0%
Fair value (per Market PRSU)$156.05$163.63$152.58
Deferred Compensation
Post provides deferred compensation plans for directors and key employees through which eligible participants may elect to defer payment of all or a portion of their compensation, and, with respect to key employee participants, all or a portion of their eligible annual bonus, until a later date based on the participant’s elections. Participant deferrals for employee and director participants may be notionally invested in Post common stock equivalents (the “Equity Option”) or into a number of funds operated by The Vanguard Group Inc. with a variety of investment strategies and objectives (the “Vanguard Funds”). In order to receive a 33.3% matching contribution, deferrals for director participants must be made into the Equity Option. Deferrals into the Equity Option are generally distributed in Post common stock for employees and cash for directors, while deferrals into the Vanguard Funds are distributed in cash. There are no significant costs related to the administration of the deferred compensation plans. Post funds its deferred compensation liability (potential cash distributions) by investing in the Vanguard Funds in substantially the same amounts as selected by the participating employees. Both realized and unrealized gains and losses on these investments are included in “Selling, general and administrative expenses” in the Consolidated Statements of Operations and offset the related change in the deferred compensation liability. For additional information regarding deferred compensation, see Note 14.