XML 55 R43.htm IDEA: XBRL DOCUMENT v2.4.0.8
Stock-Based Compensation (Tables)
 12 Months Ended
Sep. 30, 2014
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]  
Stock-Based Compensation Expenses

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

 

    

 

  
     2014     2013     2012  
     (Dollars in millions)  

Cost of sales

    $ 5      $ 4     $ 5  

Selling and administrative expenses

      8        7       9  

Research and technical expenses

      1        1       1  
  

 

 

    

 

 

    

 

 

  

Stock-based compensation expense

      14        12       15  

Income tax benefit

      (5 )      (4 )      (5 ) 
  

 

 

    

 

 

    

 

 

  

Net stock-based compensation expense

    $ 9      $ 8     $ 10  
  

 

 

    

 

 

    

 

 

  

Equity Incentive Plan Activity

The following table summarizes the total stock option, restricted stock, and restricted stock unit activity in the equity incentive plans for fiscal 2014:

 

    Stock Options     Restricted Stock     Restricted Stock Units  
    Total
Options		     Weighted
Average
Exercise
Price		     Weighted
Average
Grant Date
Fair Value		     Restricted
Stock		     Weighted
Average
Grant Date
Fair Value		     Restricted
Stock
Units(1)		     Weighted
Average
Grant Date
Fair Value		  
    (Shares in thousands)  

Outstanding at September 30, 2013

     1,623     $ 26.93     $ 8.71       1     $ 9.56       1,039     $ 34.39  

Granted

     203        47.62        18.37        —        —        322        47.63   

Performance-based adjustment(2)

     —       —        —        —        —        (25 )      39.76   

Exercised / Vested(3)

     (403 )      22.18        6.49        (1 )      9.56        (344 )      34.79   

Cancelled / Forfeited

     (2 )      35.25        12.46        —        —        (46 )      36.99   
 

 

 

        

 

 

      

 

 

    

Outstanding at September 30, 2014

     1,421        31.22        10.71        —       —        946        39.31   
 

 

 

        

 

 

      

 

 

    

Exercisable at September 30, 2014

     895        26.34             
 

 

 

              

Vested and expected to vest(4)

     1,411        31.16             
 

 

 

              

 

(1) 

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.
(2) 

Represents the number of units cancelled upon vesting of outstanding performance-based restricted stock units, based on the Company’s actual performance against the performance targets for the 2014 performance period of the outstanding units.
(3) 

Exercised / Vested includes 122,119 restricted stock units that vested during the year ended September 30, 2014 but were withheld at the request of the award recipient to cover withholding taxes associated with the vesting. These units were added back to the shares available for future issuance under our 2009 Long-Term Incentive Plan.
(4) 

Stock options vested and expected to vest in the future, net of estimated forfeitures, have a weighted average remaining contractual life of 6.7 years.
Stock Options Outstanding and Vested Options

The following table summarizes information related to the outstanding and vested options on September 30, 2014:

 

    Total
Options
Outstanding		     Exercisable
Options		     Vested and
Expected
to Vest		  

Aggregate Intrinsic Value (in millions)

   $ 28      $ 22      $ 28   

Weighted Average Remaining Contractual Term (in years)

     6.7        5.8        6.7   

 
Weighted-Average Assumptions

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

 

     Years Ended September 30  
     2014     2013     2012  

Expected stock price volatility

      45 %      46 %      45 % 

Risk free interest rate

      1.9 %      0.9 %      1.3 % 

Expected life of options (years)

      6        6        6   

Expected annual dividends per year

    $ 0.80      $ 0.80      $ 0.72