Share-Based Compensation

9 Months Ended

Jun. 30, 2021

Share-based Payment Arrangement [Abstract]

SHARE-BASED COMPENSATION We have various share-based compensation programs, which include deferred stock units, stock options, and restricted stock. During the nine months ended 30 June 2021, we granted market-based and time-based deferred stock units. Under all programs, the terms of the awards are fixed at the grant date. We issue shares from treasury stock upon the payout of deferred stock units, the exercise of stock options, and the issuance of restricted stock awards. At the annual shareholders meeting held on 28 January 2021, the shareholders approved a new Long-Term Incentive Plan ("LTIP"), which has an authorized pool of 1,500,000 shares available for future grant, plus additional shares underlying awards outstanding on the date the LTIP was adopted but that are not issued. As of 30 June 2021, there were 1,506,586 shares available for future grant under our Long-Term Incentive Plan ("LTIP").

Share-based compensation cost recognized on the consolidated income statements is summarized below:


	Three Months Ended		Nine Months Ended
	30 June		30 June
	2021	2020	2021	2020
Before-tax share-based compensation cost	$12.2	$12.5	$34.6	$41.4
Income tax benefit	(3.2)	(3.0)	(8.6)	(9.8)
After-tax share-based compensation cost	$9.0	$9.5	$26.0	$31.6

Before-tax share-based compensation cost is primarily included in "Selling and administrative" on our consolidated income statements. The amount of share-based compensation cost capitalized in the first nine months of fiscal years 2021 and 2020 was not material.

Deferred Stock Units

During the nine months ended 30 June 2021, we granted 77,251 market-based deferred stock units. The market-based deferred stock units are earned over the performance period beginning 1 October 2020 and ending 30 September 2023, conditioned on the level of our total shareholder return in relation to a defined peer group over the three-year performance period.

The market-based deferred stock units had an estimated grant-date fair value of $235.48 per unit, which was estimated using a Monte Carlo simulation model. The model utilizes multiple input variables that determine the probability of satisfying the market condition stipulated in the grant and calculates the fair value of the awards. We generally expense the grant-date fair value of these awards on a straight-line basis over the vesting period. The calculation of the fair value of market-based deferred stock units used the following assumptions:


Expected volatility	29.9	%
Risk-free interest rate	0.2	%
Expected dividend yield	2.1	%

In addition, during the nine months ended 30 June 2021, we granted 108,199 time-based deferred stock units at a weighted average grant-date fair value of $282.42.