Share-Based Compensation

12 Months Ended

Sep. 30, 2018

10.

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. As of September 30, 2018, the Company had 947,377 shares available for future issuance under equity compensation plans.

Performance-Accelerated Restricted Share Unit (PARS) 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 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 $4.1 million, $4.4 million and $3.9 million for 2018, 2017 and 2016, respectively.

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

	FY 2018					FY 2017					FY 2016
	Shares			Estimated Weighted Avg. Price		Shares			Estimated Weighted Avg. Price		Shares			Estimated Weighted Avg. Price
Nonvested at October 1,		335,825			40.35		427,438		$	35.40		326,536		$	35.29
Granted		104,320			56.06		110,422			51.16		120,902			35.75
Vested		(121,301	)		35.59		(202,035	)		35.78		(8,000	)		36.06
Cancelled		(3,300	)		53.86		–			–		(12,000	)		35.47
Nonvested at September 30,		315,544			47.23		335,825		$	40.35		427,438		$	35.40

Non-Employee Directors Plan

Through the first quarter of 2018 the non-employee directors compensation plan provided to each non-employee director a retainer of 900 common shares per quarter. Beginning in the second quarter of 2018, the quarterly retainer was replaced by an annual retainer of Company stock having a grant date market value of $180,000. Non-employee director grants were valued at the NYSE closing price of the Company’s stock on the date of grant and were issued from the Company’s treasury stock. Compensation expense related to the non-employee director grants was $1.1 million, $1.0 million and $0.8 million for 2018, 2017 and 2016, 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 $5.2 million, $5.4 million and $4.7 million for 2018, 2017 and 2016, respectively. The total income tax benefit recognized in results of operations for share-based compensation arrangements was $1.3 million, $1.8 million and $1.3 million for 2018, 2017 and 2016, respectively. As of September 30, 2018, there was $7.8 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 1.7 years.