Equity |
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| Share-Based Payment Arrangement [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Equity | EQUITY Stock Compensation
We grant restricted stock units (RSUs) and performance stock units (PSUs) to eligible participants under our 2021 Omnibus Incentive Plan, which was approved by our Board of Directors and shareholders. We issue new shares to satisfy our obligations under these plans.
The RSUs granted to employees vest ratably over or four years and one year for members of the board of directors, in each case from the grant date. In past years, we have also granted awards which vest over five years. The expense is recorded ratably over the same period, or the employee service period if that is shorter, and is based upon the fair value of the award on grant date.
The PSUs granted to employees vest at the end of a three-year performance period. Vesting is subject to the achievement of certain performance and market conditions, and the number of PSUs earned could vary from 0% to 200% of the number of PSUs awarded. The value of performance-based awards are calculated at grant date based upon the value of each individual award; these awards are expensed over the three year period based upon our expectation of the number of awards which will ultimately vest. The value of the market-based awards is calculated at grant date based upon a Monte Carlo model; unforfeited awards are expensed over three years regardless of the performance of the share price.
In addition to the non-vested shares, as part of individual elections made in the deferred compensation plan, certain directors and employees held approximately 301,000 vested but not issued awards as of September 30, 2024. These vested unissued units are included in outstanding shares for basic and diluted earnings per share but are not reported as issued and outstanding in the Consolidated Balance Sheets and Consolidated Statements of Changes in Shareholders' Equity.
As of September 30, 2024, the intrinsic value of RSUs and PSUs expected to vest was $65.8 million.
For the years ended September 30, 2024, 2023, and 2022, we recognized share-based compensation expenses of $35.3 million, $29.5 million, and $30.5 million, respectively. The income tax benefit recorded on these charges for the same years was $11.0 million, $8.1 million, and $6.9 million, respectively. The expenses related to share-based compensation awards are recorded in selling and administrative expenses. As of September 30, 2024, there was $39.8 million of total estimated unrecognized compensation cost related to non-vested RSUs and PSUs. This cost is expected to be recognized over three years, with an average life of 1.2 years. This expense may be affected by factors including changes in performance-based award expectations or award forfeitures.
The weighted-average grant-date fair value of RSUs granted in years ended September 30, 2023 and 2022, was $70.38 and $79.75, respectively. The total fair value of RSUs vested during the years ended September 30, 2024, 2023, and 2022, was $39.6 million, $29.8 million, and $23.5 million, respectively.
Stock Repurchase Programs
Under a resolution adopted in June 2024, the Board of Directors authorized an increase to our existing stock purchase program that allows us to purchase, at management's discretion, up to $200.0 million of our common stock. During the years ended September 30, 2024 and 2022, we purchased 0.9 million and 1.4 million common shares at a cost of $73.1 million and $96.1 million, respectively. We made no purchases during fiscal year 2023. As of September 30, 2024, $171.4 million remained available for future stock purchases. Subsequent to year-end, we have acquired a further 0.5 million shares at a cost of $43.2 million.
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