XML 55 R41.htm IDEA: XBRL DOCUMENT v3.8.0.1
Stock-Based Compensation (Tables)
 12 Months Ended
Sep. 30, 2017
Disclosure Of Compensation Related Costs Sharebased Payments [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

 

 

 

2017

 

 

2016

 

 

2015

 

 

 

(In millions)

 

Cost of sales

 

$

1

 

 

$

1

 

 

$

4

 

Selling and administrative expenses

 

 

14

 

 

 

15

 

 

 

7

 

Research and technical expenses

 

 

1

 

 

 

1

 

 

 

1

 

Stock-based compensation expense

 

 

16

 

 

 

17

 

 

 

12

 

Income tax benefit

 

 

(6

)

 

 

(7

)

 

 

(4

)

Net stock-based compensation expense

 

$

10

 

 

$

10

 

 

$

8

 

 
Equity Incentive Plan Activity

The following table summarizes the total stock option and restricted stock unit activity in the equity incentive plans for fiscal 2017:

 

 

 

Stock Options

 

 

Restricted Stock Units

 

 

 

Total

Options

 

 

Weighted

Average

Exercise

Price

 

 

Weighted

Average

Grant Date

Fair Value

 

 

Restricted

Stock

Units(1)

 

 

Weighted

Average

Grant Date

Fair Value

 

 

 

(Shares in thousands)

 

Outstanding at September 30, 2016

 

 

1,522

 

 

$

37.72

 

 

$

12.53

 

 

 

732

 

 

$

43.54

 

Granted

 

 

275

 

 

$

50.57

 

 

$

12.76

 

 

 

303

 

 

$

51.03

 

Performance-based adjustment(2)

 

 

—

 

 

$

—

 

 

$

—

 

 

 

10

 

 

$

46.02

 

Exercised / Vested

 

 

(639

)

 

$

32.18

 

 

$

11.05

 

 

 

(147

)

 

$

47.60

 

Cancelled / Forfeited

 

 

(14

)

 

$

48.96

 

 

$

13.41

 

 

 

(22

)

 

$

45.52

 

Outstanding at September 30, 2017

 

 

1,144

 

 

$

43.76

 

 

$

13.40

 

 

 

876

 

 

$

45.43

 

Exercisable at September 30, 2017

 

 

654

 

 

$

41.58

 

 

 

 

 

 

 

 

 

 

 

 

 

Vested and expected to vest(3)

 

 

1,134

 

 

$

43.74

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(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 net incremental number of shares issuable upon vesting of performance-based restricted stock units based upon the achievement of the annual financial performance metrics for fiscal 2017.

(3)

Stock options vested and expected to vest in the future, net of estimated forfeitures, have a weighted average remaining contractual life of 6.05 years.
Stock Options Outstanding and Vested Options

The following table summarizes information related to the outstanding and vested options on September 30, 2017:

 

 

 

Total

Options

Outstanding

 

 

Exercisable

Options

 

 

Vested and

Expected

to Vest

 

Aggregate Intrinsic Value (in millions of dollars)

 

$

14

 

 

$

9

 

 

$

14

 

Weighted Average Remaining Contractual Term (in years)

 

 

6.07

 

 

 

4.20

 

 

 

6.05

 

 
Weighted-Average Assumptions

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

 

 

 

Years Ended September 30

 

 

 

2017

 

 

2016

 

 

2015

 

Expected stock price volatility

 

 

32

%

 

 

33

%

 

 

41

%

Risk free interest rate

 

 

1.8

%

 

 

2.0

%

 

 

2.0

%

Expected life of options (years)

 

 

6

 

 

 

6

 

 

 

6

 

Expected annual dividends per year

 

$

1.20

 

 

$

1.20

 

 

$

0.88