STOCK-BASED COMPENSATION

9 Months Ended

Jun. 30, 2017

Disclosure of Compensation Related Costs, Share-based Payments [Abstract]

STOCK-BASED COMPENSATION

STOCK-BASED COMPENSATION

Refer to our Annual Report on Form 10-K for the fiscal year ended September 30, 2016 for a full description of our existing stock-based compensation plans.

Restricted Stock Units

We issue restricted stock units (RSUs) to certain officers and key employees of the Company.  The fair value of the RSUs is based on the closing price of our common stock as reported on the NASDAQ Global Market on the grant dates. These grants vest over a three-year period from their date of issuance.  Sixty percent of the grant is time-based and vests over a three-year period on each anniversary of the grant date, based on continued employment.  The remaining forty percent of the grant will be earned based on the three-year earnings performance of the Company following the grant date. At June 30, 2017, there were 194,537 RSUs outstanding. The RSUs do not have voting rights but do receive dividend equivalents upon vesting; additionally, the shares of common stock underlying the RSUs are not considered issued and outstanding until vested and common stock is issued.

RSU activity (number of shares) for the nine months ended June 30, 2017 is summarized below:

	Number of Restricted Stock Units		Weighted Average Fair Value Per Share
Outstanding at September 30, 2016	159,988		$	43.12
Granted	62,100		39.57
Vested	(27,551	)	39.08
Outstanding at June 30, 2017	194,537		$	42.56

During the nine months ended June 30, 2017 and 2016, we recorded compensation expense of $1.7 million and $3.7 million, respectively, related to the RSUs.  The higher compensation expense recorded in the nine months ended June 30, 2016 was primarily due to the early vesting of shares associated with executive separation costs, see Note J.

Restricted Stock

Beginning with the February 2017 grant, fifty-percent of the restricted stock granted to each of our non-employee directors vests immediately, while the remaining fifty-percent will vest on the anniversary of the grant date. Compensation expense will be recognized immediately for the first fifty-percent of the restricted stock granted, while compensation expense for the remaining fifty-percent will be recognized over the remaining vesting period based on the price per share on the grant date.  In February 2017, 17,000 shares of restricted stock were issued to our non-employee directors at a price of $34.24 per share under the 2014 Director Plan.

During the nine months ended June 30, 2017 and 2016, we recorded compensation expense of $0.6 million, respectively, related to restricted stock grants.