STOCK INCENTIVE PLANS

6 Months Ended

Mar. 31, 2015

Disclosure of Compensation Related Costs, Share-based Payments [Abstract]

Stock Incentive Plans

Stock Incentive Plans

The Company maintains an Incentive Stock Plan, whereby incentive and non-qualified stock options, restricted stock and performance shares may be granted to officers and other key employees to purchase a specified number of shares of common stock at a price not less than the fair market value on the date of grant. The term of the Incentive Stock Plan continues through 2017. There were no incentive stock options, restricted stock or performance shares granted in fiscal year 2014 or through the first six months of fiscal year 2015. Non-qualified stock options were granted to officers and other key employees in the first quarter of fiscal year 2015 and 2014. During the six-month periods ended March 31, 2015 and 2014, outside directors each received 3,000 shares of common stock, from the 2007 Incentive Stock Plan, that were fully vested upon grant. Options granted to officers and other key employees generally vest over five years and will expire not later than ten years after the date on which they are granted.

The fair value of each option award is estimated on the date of grant using the Black-Scholes model. The following assumptions were used in these calculations:

	November 2014 Grants			November 2013 Grants
Weighted average grant date fair value	$	8.37		$	11.72
Expected life	5.40 years			5.40 years
Volatility	37.47		%	50.55		%
Risk-free interest rate	1.73		%	1.48		%
Dividend yield	—		%	—		%

The Company uses historical data to estimate the expected life, volatility, and annual forfeiture rates of outstanding options. The risk-free interest rate is based on the U.S. Treasury yield curve in effect at the time of grant.

The balance of outstanding stock options and all options activity at and for the six months endedMarch 31, 2015, are as follows:

	Number of Shares		Weighted Average Exercise Price			Weighted Average Remaining Contractual Term (Years)	Aggregate Intrinsic Value (Millions)
Outstanding at September 30, 2014	3,357,050		$	27	1/10	4.86 years
Granted	341,750		$	22	3/4
Exercised	(228,696	)	$	17	1/8
Forfeited	(37,104	)	$	22	1/2
Outstanding at March 31, 2015	3,433,000		$	27	2/5	5.11 years	$	2.54
Exercisable at March 31, 2015	2,424,400		$	28	1/5	3.74 years	$	2.04

As of March 31, 2015, there were $10.4 million of total unrecognized compensation costs related to unvested stock options. These costs are expected to be recognized over a weighted-average period of 3.22 years.

During the three and six-month periods ended March 31, 2015 and 2014, the following activity occurred under the Incentive Stock Plan:

	Three Months Ended March 31,				Six Months Ended March 31,
	2015		2014		2015		2014
Total intrinsic value of stock options exercised	$	508	$	704	$	1,141	$	1,017
Cash received from stock option exercises	$	468	$	1,558	$	1,573	$	2,138