Stock-Based Compensation (Tables)

12 Months Ended

Sep. 30, 2023

Share-Based Payment Arrangement [Abstract]

Stock-Based Compensation Expenses

The following table presents stock-based compensation expenses included in the Company’s Consolidated Statements of Operations:

	Years Ended September 30
	2023			2022			2021
	(In millions)
Cost of sales	$	2		$	3		$	2
Selling and administrative expenses		16			18			17
Research and technical expenses		2			2			2
Stock-based compensation expense		20			23			21
Income tax benefit		(2	)		(1	)		(1	)
Net stock-based compensation expense	$	18		$	22		$	20

Equity Incentive Plan Activity

The following table summarizes the total stock option and restricted stock unit activity in the equity incentive plans for fiscal 2023:

	Stock Options					Restricted Stock Units
	Total Options (1)			Weighted Average Exercise Price		Restricted Stock Units(4)			Weighted Average Grant Date Fair Value
	(Shares in thousands)
Outstanding at September 30, 2022		1,574		$	49.89		1,012		$	48.95
Granted		157		$	73.84		225		$	73.68
Performance-based adjustment(2)		—		$	—	$	20		$	51.88
Exercised / Vested		(75	)	$	47.77		(275	)	$	50.43
Cancelled / Forfeited		(15	)	$	49.88		(44	)	$	50.20
Outstanding at September 30, 2023(3)		1,641		$	52.27		938		$	54.45
Exercisable at September 30, 2023		1,172		$	50.02

(1)Unvested stock options were approximately 469,000 and 651,000 at September 30, 2023 and 2022 and their weighted average grant date fair values were $57.92 and $49.30, respectively.

(2)Represents the net incremental number of shares issuable upon vesting of performance-based restricted stock units based on the Company’s actual financial performance metrics for fiscal 2023.

(3)Stock options outstanding include options vested and expected to vest in the future and have a weighted average remaining contractual life of 6.13 years.

(4)The number granted represents the number of shares issuable upon vesting of time-based restricted stock units and performance-based restricted stock units, assuming the Company performs at the target performance level in each year of the three-year performance period.

Weighted-Average Assumptions

The fair values on the grant date were calculated using the following weighted-average assumptions:

	Years Ended September 30
	2023			2022			2021
Expected stock price volatility		38	%		35	%		36	%
Risk free interest rate		4.0	%		1.4	%		0.6	%
Expected life of options (years)		6			6			6
Expected annual dividends per year	$	1.48		$	1.40		$	1.40