SHARE-BASED COMPENSATION

9 Months Ended

Jun. 30, 2017

The Company provides compensation benefits to certain key employees under several share-based plans providing for performance-accelerated restricted shares (restricted shares), and to non-employee directors under a non-employee directors compensation plan.

Performance-Accelerated Restricted Share Awards

Compensation expense related to the restricted share awards was $1.0 million and $3.3 million for the three and nine-month periods ended June 30, 2017, respectively, and $0.8 million and $3.1 million for the corresponding periods of 2016. There were 335,825 non-vested shares outstanding as of June 30, 2017.

Non-Employee Directors Plan

Compensation expense related to the non-employee director grants was $0.3 million and $0.8 million for the three and nine-month periods ended June 30, 2017, respectively, and $0.2 million and $0.6 million for the corresponding periods of 2016.

The total share-based compensation cost that has been recognized in the results of operations and included within selling, general and administrative expenses (SG&A) was $1.3 million and $4.1 million for the three-and nine-month periods ended June 30, 2017, respectively, and $1.0 million and $3.7 million for the corresponding periods of 2016. The total income tax benefit recognized in results of operations for share-based compensation arrangements was $1.2 million and $2.2 million for the three and nine-month periods ended June 30, 2017, respectively, and $0.4 million and $1.3 million for the corresponding periods of 2016, respectively. As of June 30, 2017, there was $7.3 million of total unrecognized compensation cost related to share-based compensation arrangements. That cost is expected to be recognized over a remaining weighted-average period of 1.8 years.