SHARE-BASED COMPENSATION

Our incentive plans permit the issuance of restricted stock and restricted stock unit awards (which we refer to as "restricted stock awards"), performance awards, stock appreciation rights and stock options. There are 2.5 million shares available for future grants at September 30, 2016. We deliver newly issued shares of common stock for restricted stock awards upon vesting or upon exercise of stock options.

Share-based compensation is recognized as an expense over the requisite service period on a straight-line basis. The total share-based compensation expense is based on the fair value of the award measured at the grant date.



	September 30,
(In thousands, except average service periods)	2016		2015		2014
Share-based compensation recognized	$	11,862	$	12,828	$	14,691
Unrecognized compensation cost, net of estimated forfeitures	19,406		16,934		16,478
Remaining weighted-average service period (years)	1.7		2.0		1.7

Restricted Stock

We have awarded restricted stock and restricted stock units to certain employees and to our non-employee directors. All current awards of restricted stock to employees are subject to a vesting and restriction period up to three years, as set forth in the terms of the grant. Our restricted stock awards are subject to acceleration for change of control, retirement, death or disability. All awards of restricted stock to non-employee directors are subject to a vesting and restriction period of 13 months, subject to acceleration upon certain events, such as change of control, as set forth in the terms of the grant. We value restricted stock awards based on the fair market value of our common stock on the date of grant. Our restricted stock holders have the right to receive dividend equivalents for their restricted awards that vest. Recipients of restricted stock awards do not have the rights of a shareholder until shares of stock are issued to the recipient.

A summary of restricted stock activity for fiscal year 2016 is as follows:



	Number of Shares (000s)		Weighted Average Fair Value
Unvested as of October 1, 2015	711		$	43.14
Granted	1,091		13.20
Vested	(195	)	45.88
Forfeited	(92	)	31.01
Unvested as of September 30, 2016	1,515		21.96

Performance Units

We have made awards to certain employees that are subject to market-based performance conditions ("performance units"). All current awards of performance units are subject to a vesting and restriction period of three years. Our performance unit awards are subject to acceleration for change of control, retirement, death or disability. The number of performance unit awards that vest and the number of shares received upon vesting depends on the degree of achievement of specified corporate market-based performance criteria. The grant date fair value of the performance units we have granted was determined through use of the Monte Carlo simulation method. The Monte Carlo simulation method requires the use of highly subjective assumptions. Our key assumptions in the method include the price and the expected volatility of our and our self-determined peer group companies’ stock, risk free rate of return, dividend yields and cross-correlations between our and our self-determined peer group companies stock. The grant date fair value per share for the performance units we granted in fiscal year 2016, 2015 and 2014 were $15.63, $37.08 and $53.55, respectively. Our performance unit holders have the right to receive dividend equivalents for their performance units that vest. Recipients of performance units do not have the rights of a shareholder until shares of stock are issued to the recipient.

A summary of performance unit stock activity for fiscal year 2016 is as follows:



	Number of Shares (000s)		Weighted Average Fair Value
Unvested as of October 1, 2015	240		$	43.73
Granted	255		15.63
Vested	—		—
Forfeited	(69	)	45.20
Unvested as of September 30, 2016	426		26.69

Stock Options

Under our stock incentive plans, our options have a maximum term of 10 years. Options vest ratably over a period ranging from the end of the first to the fourth year from the date of grant. Each option is for the purchase of one share of our common stock. The total fair value of stock options vested during fiscal years 2016, 2015 and 2014 was $0.5 million, $2.5 million and $2.8 million, respectively. There were no stock options exercised during the fiscal year 2016. Cash proceeds received for the exercise of options for the fiscal years 2015 and 2014 were $1.1 million and $3.7 million, respectively. No stock options were granted during fiscal years 2016, 2015 or 2014.

A summary of stock option activity for fiscal year 2016 is as follows:



	Number of Options (000s)		Weighted Average Exercise Price		Weighted Average Remaining Contractual Life (Years)	Aggregate Intrinsic Value (000s)
Outstanding as of October 1, 2015	685		$	34.90
Granted	—		—
Exercised	—		—
Forfeited	—		—
Expired	(68	)	29.75
Outstanding as of September 30, 2016	617		35.47		3.4	(16,533	)
Exercisable as of September 30, 2016	617		35.47		3.4	(16,533	)