STOCK-BASED COMPENSATION (Tables)

9 Months Ended

Jun. 30, 2023

Share-Based Payment Arrangement [Abstract]

Schedule of Compensation Cost for Stock-Based Payment Arrangements

A summary of compensation expense for stock-based payment arrangements recognized in Drilling services operating expense, Research and development expense and Selling, general and administrative expense on our Unaudited Condensed Consolidated Statements of Operations, is as follows:

	Three Months Ended June 30,				Nine Months Ended June 30,
(in thousands)	2023		2022		2023		2022
Stock-based compensation expense
Drilling services operating	$	1,540	$	1,340	$	4,457	$	3,862
Research and development	500		400		1,411		1,146
Selling, general and administrative	6,140		5,311		18,016		16,206
	$	8,180	$	7,051	$	23,884	$	21,214

Schedule of the Status of Restricted Stock Awards and Changes in Restricted Stock Outstanding

A summary of the status of our restricted stock awards as of June 30, 2023 and changes in non-vested restricted stock outstanding during the nine months then ended is presented below:

(in thousands, except per share amounts)	Shares1	Weighted-Average Grant Date Fair Value per Share
Non-vested restricted stock outstanding at September 30, 2022	1,493	$	30.85
Granted	592	44.48
Vested2	(708)	33.95
Forfeited	(11)	36.53
Non-vested restricted stock outstanding at June 30, 2023	1,366	$	35.10

(1)Restricted stock shares include restricted phantom stock units under our Director Deferred Compensation Plan. These phantom stock units confer the economic benefits of owning company stock without the actual ownership, transfer or issuance of any shares. Phantom stock units are subject to a vesting period of one year from the grant date. During the nine months ended June 30, 2023, 12,591 restricted phantom stock units were granted and 14,199 restricted phantom stock units vested.

(2)The number of restricted stock awards vested includes shares that we withheld on behalf of our employees to satisfy the statutory tax withholding requirements.

A summary of the status of our performance-vested restricted share units ("performance units") as of June 30, 2023 and changes in non-vested performance units outstanding during the nine months then ended is presented below:

(in thousands, except per unit amounts)	Performance Units	Weighted-Average Grant Date Fair Value per Unit
Non-vested performance units outstanding at September 30, 2022	726	$	33.67
Granted	144	54.30
Vested	(286)	43.40
Dividend equivalent rights performance units credited and performance factor adjustment1	203	36.00
Non-vested performance units outstanding at June 30, 20232	787	$	34.51

(1)At the end of the Vesting Period, recipients receive dividend equivalents, if any, with respect to the number of vested performance units. The vesting of units ranges from zero to 200 percent of the units granted depending on the Company’s total shareholder return ("TSR") relative to the TSR of the Peer Group on the vesting date.

(2)Of the total non-vested performance units at the end of the period, specified performance criteria has been achieved with respect to 229,421 performance units which is calculated based on the payout percentage for the completed performance period. The vesting and number of the remainder of non-vested performance units reflected at the end of the period is contingent upon our achievement of specified target performance criteria. If we meet the specified maximum performance criteria, approximately 386,073 additional performance units could vest or become eligible to vest.