Stock-based Compensation

3 Months Ended

Dec. 31, 2020

Share-based Payment Arrangement [Abstract]

Stock-based Compensation

Stock-based Compensation

Stock-based compensation expense is included in general and administrative expenses in the condensed consolidated statements of operations. Following is a summary of stock-based compensation expense related to stock options and restricted stock awards for the three months ended December 31, 2020 and December 31, 2019, respectively.

	Three Months Ended
	December 31,
in thousands	2020		2019
Stock-based compensation expense	$	3,511	$	2,311

Stock Options

Following is a summary of stock option activity for the three months ended December 31, 2020:

	Three Months Ended
	December 31, 2020
	Shares	Weighted Average Exercise Price
Outstanding at beginning of period	392,465	$	15.47
Exercised	(116,465)	13.33
Outstanding at end of period	276,000	$	16.37
Exercisable at end of period	269,498	$	16.53
Vested or expected to vest in the future	275,783	$	16.38

As of December 31, 2020 and September 30, 2020, unrecognized compensation costs related to unvested stock options were less than $0.1 million. The remaining costs as of December 31, 2020 are expected to be recognized over a weighted-average period of 0.66 years.

Restricted Stock Awards

During the three months ended December 31, 2020, the Company issued time-based restricted stock awards. The time-based restricted shares granted to our non-employee directors vest on the first anniversary of the grant, while the time-based restricted shares granted to our executive officers and other employees generally vest ratably over three years from the date of grant. Performance-based restricted share awards vest subject to the achievement of performance and market conditions over a three-year period.

Following is a summary of restricted stock activity for the three months ended December 31, 2020:

	Three Months Ended December 31, 2020
	Performance-Based Restricted Shares	Time-Based Restricted Shares	Total Restricted Shares
Beginning of period	796,024	610,130	1,406,154
Granted (a)	164,296	246,550	410,846
Vested	(222,165)	(277,857)	(500,022)
End of period	738,155	578,823	1,316,978

(a) Each of our performance-based restricted share represents a contingent right to receive one share of the Company's common stock if vesting is satisfied at the end of the three-year performance period. Our performance stock award plans provide that any performance shares earned in excess of the target number of performance shares issued may be settled in cash or additional shares at the discretion of the Compensation Committee. In November 2020, we issued 60,930 shares earned above target level based on the performance level achieved under the fiscal 2018 performance-based award plan.

As of December 31, 2020 and September 30, 2020, total unrecognized compensation costs related to unvested restricted stock awards was $12.5 million and $9.0 million, respectively. The remaining costs as of December 31, 2020 are expected to be recognized over a weighted average period of 1.92 years.