Stock-Based Compensation

6 Months Ended

Mar. 31, 2017

Stock-Based Compensation

Stock-Based Compensation

Note 9 - Stock-Based Compensation

We recorded non-cash compensation expense related to stock-based awards for the three- and six-month periods ended March 31, 2017 and 2016 as follows (in thousands):

	Six Months Ended				Three Months Ended
	March 31,				March 31,
	2017		2016		2017		2016
Cost of sales	$	283	$	544	$	108	$	226
Selling, general and administrative		3,074		3,544		935		1,744
	$	3,357	$	4,088	$	1,043	$	1,970

As of March 31, 2017, there was $47.5 million of unrecognized compensation cost related to unvested RSUs. Based upon the expected forfeitures and the expected vesting of performance based RSUs, the aggregate fair value of RSUs expected to ultimately vest is $22.5 million. This amount is expected to be recognized over a weighted-average period of 1.6 years.

We are required to estimate forfeitures at the time of grant and revise those estimates in subsequent periods on a cumulative basis in the period the estimated forfeiture rate changes for all stock-based awards when significant events occur. We consider our historical experience with employee turnover as the basis to arrive at our estimated forfeiture rate. The forfeiture rate was estimated to be 12.5% per year as of March 31, 2017. To the extent the actual forfeiture rate is different from what we have estimated, stock-based compensation related to these awards will be different from our expectations.