Share-Based Compensation

12 Months Ended

Sep. 30, 2016

Share-based Compensation [Abstract]

SHARE-BASED COMPENSATION

11. Share-Based Compensation

The Company provides compensation benefits to certain key employees under several share-based plans providing for performance-accelerated restricted share unit (PARS) awards, and to non-employee directors under a non-employee directors compensation plan. The Company has no stock options currently outstanding.

Performance-Accelerated Restricted Share Unit Awards

A PARS award represents the right to receive a specified number of shares of Company common stock if and when the award vests. A PARS award is not stock and does not give the recipient any rights as a shareholder until it vests and is paid out in shares of stock. PARS awards currently outstanding have a five-year vesting period, with accelerated vesting if certain targets based on market conditions are achieved. In these cases, if it is probable that the performance condition will be met, the Company recognizes compensation cost on a straight-line basis over the shorter performance period; otherwise, it will recognize compensation cost over the longer service period. Compensation cost for the majority of the outstanding PARS awards is being recognized over the shorter performance period as it is probable the performance condition will be met. The PARS award grants were valued at the stock price on the date of grant. Pretax compensation expense related to the PARS awards for continuing operations was $3.9 million, $4.0 million and $4.1 million for 2016, 2015 and 2014, respectively.

The following summary presents information regarding outstanding PARS awards as of the specified dates, and changes during the specified periods:

	FY 2016				FY 2015				FY 2014
			Estimated				Estimated				Estimated
			Weighted				Weighted				Weighted
	Shares		Avg. Price		Shares		Avg. Price		Shares		Avg. Price
Nonvested at October 1,		326,536	$	35.29		332,340	$	32.23		425,245	$	33.29
Granted		120,902	$	35.75		123,501	$	34.33		109,404	$	33.12
Vested		(8,000)	$	36.06		(129,305)	$	26.66		(168,809)	$	35.13
Cancelled		(12,000)	$	35.47		–		–		(33,500)	$	34.08
Nonvested at September 30,		427,438	$	35.40		326,536	$	35.29		332,340	$	32.23

Non-Employee Directors Plan

The non-employee directors compensation plan provides to each non-employee director a retainer of 900 common shares per quarter. Compensation expense related to the non-employee director grants was $0.8 million, $0.8 million and $0.7 million for 2016, 2015 and 2014, respectively.

Total Share-Based Compensation

The total share-based compensation cost that has been recognized in results of operations and included within SG&A from continuing operations was $4.7 million, $4.8 million and $4.8 million for 2016, 2015 and 2014, respectively. The total income tax benefit recognized in results of operations for share-based compensation arrangements was $1.3 million, $1.6 million and $1.3 million for 2016, 2015 and 2014, respectively. The Company has elected to use tax law ordering rules when calculating the income tax benefit associated with its share-based payment arrangements. In addition, the Company elected to use the simplified method of calculating the pool of excess tax benefits available to absorb tax deficiencies recognized. As of September 30, 2016, there was $5.1 million of total unrecognized compensation cost related to share-based compensation arrangements. That cost is expected to be recognized over a weighted-average period of 1.2 years.