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Stock-Based Compensation (Tables)
 12 Months Ended
Sep. 30, 2019
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

 

 

 

2019

 

 

2018

 

 

2017

 

 

 

(In millions)

 

Cost of sales

 

$

1

 

 

$

2

 

 

$

1

 

Selling and administrative expenses

 

 

9

 

 

 

19

 

 

 

14

 

Research and technical expenses

 

 

1

 

 

 

1

 

 

 

1

 

Stock-based compensation expense

 

 

11

 

 

 

22

 

 

 

16

 

Income tax benefit

 

 

(3

)

 

 

(6

)

 

 

(6

)

Net stock-based compensation expense

 

$

8

 

 

$

16

 

 

$

10

 
Equity Incentive Plan Activity

The following table summarizes the total stock option and restricted stock unit activity in the equity incentive plans for fiscal 2019:

 

 

 

Stock Options

 

 

Restricted Stock Units

 

 

 

Total

Options (4)

 

 

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, 2018

 

 

881

 

 

$

50.73

 

 

$

13.82

 

 

 

985

 

 

$

50.16

 

Granted

 

 

343

 

 

$

49.70

 

 

$

10.85

 

 

 

316

 

 

$

49.44

 

Performance-based adjustment(2)

 

 

—

 

 

$

—

 

 

$

—

 

 

 

10

 

 

$

62.98

 

Exercised / Vested

 

 

(49

)

 

$

35.06

 

 

$

9.41

 

 

 

(383

)

 

$

40.97

 

Cancelled / Forfeited

 

 

(153

)

 

$

54.44

 

 

$

10.36

 

 

 

(163

)

 

$

54.48

 

Outstanding at September 30, 2019(3)

 

 

1,022

 

 

$

50.57

 

 

$

12.13

 

 

 

765

 

 

$

53.71

 

Exercisable at September 30, 2019

 

 

499

 

 

$

48.09

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(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 2019.

(3)

Stock options outstanding include options vested and expected to vest in the future and have a weighted average remaining contractual life of 6.74 years.

(4)

Unvested stock options were approximately 523,000 and 546,000 at September 30, 2019 and 2018 and their weighted average grant date fair values were $52.95 and $54.48, respectively.

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

 

 

 

Years Ended September 30

 

 

 

2019

 

 

2018

 

 

2017

 

Expected stock price volatility

 

 

27

%

 

 

28

%

 

 

32

%

Risk free interest rate

 

 

3.1

%

 

 

2.2

%

 

 

1.8

%

Expected life of options (years)

 

 

6

 

 

 

6

 

 

 

6

 

Expected annual dividends per year

 

$

1.32

 

 

$

1.26

 

 

$

1.20