Annual report pursuant to Section 13 and 15(d)

Equity

v3.5.0.2
Equity
 12 Months Ended
Sep. 30, 2016
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]  
Equity
Equity
Stock compensation
At September 30, 2016, 1.7 million shares remained available for grants under our 2011 Equity Incentive Plan. We typically issue new shares in satisfying our obligations under our stock plans.
We grant equity awards to officers, employees and directors in the form of restricted stock units (RSUs). RSUs issued generally vest ratably over one or five years. The fair value of the RSUs, based on our stock price at the grant date, is expensed in equal installments over the vesting period. For the fiscal years ended September 30, 2016, 2015 and 2014, compensation expense recognized related to RSUs was $18.8 million, $17.2 million and $17.3 million, respectively. All individuals who are granted RSUs also receive dividend-equivalent payments in the form of additional RSUs. However, until the shares are issued, they have no voting rights and may not be bought or sold. In the event that an award is forfeited, the dividend-equivalent payments received by the holder with respect to that award are also forfeited.
A summary of our RSU activity for the year ended September 30, 2016, is as follows:
 
Shares
 
Weighted-Average
Grant-Date
Fair Value
Non-vested shares outstanding at September 30, 2015
861,540

 
$
42.48

Granted
481,901

 
52.00

Vested
(480,873
)
 
43.08

Forfeited
(53,262
)
 
44.75

Non-vested shares outstanding at September 30, 2016
809,306

 
47.64


In addition to the non-vested shares, certain shareholders held approximately 0.9 million vested awards whose issuance has been deferred.
The weighted-average grant-date fair value of RSUs granted in the years ended September 30, 2015 and 2014 was $50.82 and $46.49, respectively. The total fair value of RSUs which vested during the years ended September 30, 2016, 2015 and 2014 was $27.1 million, $68.6 million and $38.7 million, respectively. As of September 30, 2016, the total remaining unrecognized compensation cost related to unvested RSUs was $38.5 million. This expense is expected to be realized over the next four years, with a weighted average life of 1.4 years.
Prior to fiscal year 2008, we granted stock options to certain employees. These were granted at exercise prices equal to the fair market value of our common stock at the date of grant, vested over a period of four years and expired ten years after the date of the grant. No compensation expenses related to stock options were recorded in any of the years shown.
A summary of our stock option activity for the year ended September 30, 2016, is as follows:
 
Options
 
Weighted Average
Exercise Price
Outstanding at September 30, 2015
160,000

 
$
9.18

Exercised
(80,000
)
 
6.82

Outstanding and exercisable at September 30, 2016
80,000

 
11.55



The intrinsic value of outstanding and exercisable stock options at September 30, 2016 was $3.6 million. All remaining stock options will expire if not exercised before October 2017.
The following table summarizes information pertaining to the stock options vested and exercised for the years presented (in thousands):
 
Year ended September 30,
 
2016
 
2015
 
2014
Aggregate intrinsic value of all stock options exercised
$
4,077

 
$
5,536

 
$
5,698

Net cash proceeds from exercise of stock options
546

 
868

 
1,362


The total income tax benefit recognized in the consolidated statement of operations for share-based compensation arrangements was $7.4 million, $7.1 million and $7.0 million for the fiscal years ended September 30, 2016, 2015 and 2014, respectively.
Employees are permitted to forfeit a certain number of shares to cover their personal tax liability, with the Company making tax payments to the relevant authorities. These payments are reported in the consolidated statements of cash flows as financing cash flows. During the year ended September 30, 2016, our employees forfeited 162,016 shares in this manner, resulting in a liability of $9.3 million.
Stock repurchase programs
Under a resolution adopted in August 2015, the Board of Directors authorized the repurchase, at management's discretion, of up to an aggregate of $200 million of our common stock. This resolution superseded similar authorizations from November 2011 and June 2014. The resolution also authorizes the use of option exercise proceeds for the repurchase of our common stock. During the years ended September 30, 2016, 2015 and 2014, we repurchased 0.6 million, 1.6 million and 2.7 million common shares at a cost of $31.3 million, $82.8 million and $113.1 million, respectively. At September 30, 2016, $137.8 million remained available for future stock repurchases.
Subsequent to September 30, 2016, we have repurchased an additional 0.5 million common shares at a cost of $24.0 million.