Stock-Based Compensation (Tables)

9 Months Ended

Jun. 30, 2020

Share-based Payment Arrangement, Noncash Expense [Abstract]

Stock Based Compensation Included in Consolidated Statements of Operations

The amounts included in the consolidated statements of operations related to stock-based compensation are as follows (dollars in thousands): 

	Three Months Ended June 30,				Nine Months Ended June 30,
	2020		2019		2020		2019
Cost of hosting and professional services	$	6,205	$	6,958	$	18,250	$	18,646
Cost of product and licensing	124		197		383		593
Cost of maintenance and support	360		583		1,206		730
Research and development	8,720		5,662		26,106		15,568
Sales and marketing	8,003		6,775		23,022		21,643
General and administrative	9,723		10,006		29,063		27,296
Total	$	33,135	$	30,181	$	98,030	$	84,476

Summary of Stock Options Activity

The table below summarizes activities related to stock options for the nine months ended June 30, 2020:

	Number of Shares		Weighted Average Exercise Price		Weighted Average Remaining Contractual Term	Aggregate Intrinsic Value (a)
Outstanding at September 30, 2019	11,302		$	20.04
Exercised	(3,830	)	$	17.18
Equitable Adjustment - Cerence Spin-off (b)	1,883
Outstanding at June 30, 2020	9,355		$	17.18	1.8 years	$	0.1	million
Exercisable at June 30, 2020	9,355		$	17.18	1.8 years	$	0.1	million
Exercisable at June 30, 2019	13,116		$	17.63	2.7 years	$	—

^(a) 

The aggregate intrinsic value in this table represents any excess of the closing market price of our common stock as of June 30, 2020 ($25.31) over the exercise price of the underlying options.

Summary of Activity Relating to Restricted Units and Restricted Stock Awards

he table below summarizes activities relating to restricted units for the nine months ended June 30, 2020:

	Number of Shares Underlying Restricted Units — Performance-Based Awards		Number of Shares Underlying Restricted Units — Time-Based Awards
Outstanding at September 30, 2019	1,991,325		8,998,944
Granted	1,067,900		4,706,143
Earned/released	(303,198	)	(6,295,504	)
Forfeited	(438,981	)	(1,362,545	)
Equitable Adjustment - Cerence Spin-off (b)	303,074		1,316,006
Outstanding at June 30, 2020	2,620,120		7,363,044
Weighted average remaining recognition period of outstanding Restricted Units	1.6 years		1.6 years
Unrecognized stock-based compensation expense of outstanding Restricted Units	$22.0 million		$59.1 million
Aggregate intrinsic value of outstanding Restricted Units (a)	$66.3 million		$186.3 million

^(a)  The aggregate intrinsic value in this table represents any excess of the closing market price of our common stock as of June 30, 2020 ($25.31) over the purchase price of the underlying restricted units.

^(b) 

Effective with the spin-off of our Automotive business on October 1, 2019, outstanding equity awards were equitably adjusted by a conversion ratio of 1.16667 per one Nuance share then hel

Summary of Weighted-Average Grant-Date Fair Value and Intrinsic Value of Restricted Units and Restricted Stock Awards Vested

A summary of the weighted-average grant-date fair value of restricted units granted, and the aggregate intrinsic value of restricted units vested during the periods noted is as follows: 

	Nine Months Ended June 30,
	2020		2019
Weighted-average grant-date fair value per share	$	17.71	$	17.30
Total intrinsic value of shares vested (in millions)	$	115.6	$	106.1

Performance-based restricted units outstanding as of June 30, 2020 and issued in fiscal years 2020 and 2019 include performance goals based on total shareholder return relative to our peers during the performance period. The awards actually earned will be up to one-hundred and fifty percent and two hundred percent of the target number of the performance-based restricted units. Compensation expense is recorded ratably over the performance period of the award based on the grant date fair value determined using a Monte Carlo simulation model, which included the following assumptions: