Equity |
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Sep. 30, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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| Equity | Equity Stock compensation
At September 30, 2020, 0.5 million shares remained available for grants under our 2017 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 , 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, 2020, 2019 and 2018, compensation expense recognized related to RSUs was $23.7 million, $20.8 million and $20.2 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. We estimate our stock award forfeitures as we expense each award.
A summary of our RSU activity for the year ended September 30, 2020, is as follows:
In addition to the non-vested shares, certain directors and employees held approximately 0.6 million vested awards whose issuance has been deferred as of September 30, 2020.
The weighted-average grant-date fair value of RSUs granted in the years ended September 30, 2019 and 2018, was $66.96 and $64.33, respectively. The total fair value of RSUs vested during the years ended September 30, 2020, 2019 and 2018 was $23.6 million, $27.4 million and $30.3 million, respectively. As of September 30, 2020, the total remaining unrecognized compensation cost related to unvested RSUs was $41.7 million. This expense is expected to be realized over the next four years, with a weighted average life of 1.5 years.
The total income tax benefit recognized in the consolidated statements of operations for share-based compensation arrangements was $8.0 million, $9.9 million and $8.7 million for the fiscal years ended September 30, 2020, 2019 and 2018, respectively.
Employees are permitted to forfeit a 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 three years ending September 30, 2020, 2019 and 2018, we incurred liabilities related to these forfeitures of $9.8 million, $10.6 million and $8.7 million, respectively.
Stock purchase programs
Under a resolution adopted in March 2020, the Board of Directors authorized the purchase, at management's discretion, of up to $200 million of our common stock. This supplemented a similar resolution adopted in June 2018. During the years ended September 30, 2020, 2019 and 2018, we purchased 2.8 million, 0.7 million and 1.1 million common shares at a cost of $167.0 million, $46.8 million and $67.6 million, respectively. At September 30, 2020, $150.0 million remained available for future stock repurchases.
Between October 1, 2020, and November 19, 2020, we have made additional purchases of 0.1 million shares of common stock at a total cost of approximately $3.4 million.
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