Share-Based Payments

12 Months Ended

Sep. 30, 2024

Share-Based Payment Arrangement [Abstract]

As of September 30, 2024, the Company had three share-based compensation plans: the Second Amended and Restated 2018 Stock Incentive Plan (the “Second A&R 2018 Plan”), the Second Amended and Restated 2009 Incentive Stock Plan (the “2009 Plan”) and the 2000 Incentive Stock Plan (the “2000 Plan”). The 2000 Plan was superseded by the 2009 Plan, which was then superseded by the 2018 Stock Incentive Plan, which was then superseded by the Second Amended and Restated 2018 Stock Incentive Plan. New awards granted after January 2024 are issued under the Second A&R 2018 Plan. The Second A&R 2018 Plan provides for the award of performance restricted share equivalents (“PRSEs”), Restricted share equivalents (“RSEs”), or Share Options to purchase the Company’s common stock to directors, officers and employees of the Company. The maximum number of shares authorized for issuance under the 2018 Plan is 17.9, of which 3.4 were available for future awards as of September 30, 2024.

Share options are granted at the market price on the grant date and generally vest ratably over three years. These awards typically have a maximum term of ten years. PRSEs and RSEs may also be granted. Option shares and prices, and PRSEs and RSEs, are adjusted in conjunction with stock splits and other recapitalizations, including our 2015 separation from Energizer, so that the holder is in the same economic position before and after these equity transactions.

The Company uses the straight-line method of recognizing compensation cost. Total compensation costs charged against earnings before income taxes for the Company’s share-based compensation arrangements were $26.5, $27.5 and $23.9 for fiscal 2024, 2023 and 2022, respectively, and were recorded in SG&A. The total income tax benefit recognized for share-based compensation arrangements was $6.3, $6.6 and $5.7, for fiscal 2024, 2023 and 2022, respectively. Restricted stock issuance and shares issued for share option exercises under the Company’s share-based compensation programs are generally issued from treasury shares.

Share Options

The following table summarizes Share Option activity during fiscal 2024:


	Shares	Weighted-Average Exercise Price		Weighted-Average Remaining Contractual Term (in years)	Aggregate Intrinsic Value
Outstanding as of October 1, 2023	1.2	$	46.88
Granted	0.1	34.22
Canceled and Expired	(0.2)	86.72
Exercised	—	—
Outstanding as of September 30, 2024	1.1	$	42.93	6.1	$	1.2

Vested and unvested expected to vest as of September 30, 2024	1.1	$	42.93	6.1	$	1.2
Exercisable as of September 30, 2024	0.8	$	45.22

An immaterial number of share options were exercised in fiscal 2024, 2023 and 2022.

The Company estimates the grant-date fair value of share option awards using the Black-Scholes option pricing model. The expected volatility is determined based on historical volatility. The Company utilizes the simplified method in estimating the share option life as the Company does not have sufficient historical share option experience to estimate the share option life. During fiscal 2024 and 2023, the Company granted non-qualified share option awards to certain executives and employees of 0.1 and 0.1, respectively, with a grant-date fair value of $2.1 and $2.2, respectively. The following table presents the Company’s weighted average fair value per option and the assumptions utilized in the Black-Scholes option pricing model:


	2024			2023
Weighted-average fair value per share option	$	13.48		$	15.22
Expected volatility	41.0		%	40.0		%
Risk-free interest rate	4.67		%	3.85		%
Expected share option life (in years)	6.0			6.0
Dividend yield	1.75		%	1.51		%

As of September 30, 2024, there was an estimated $2.5 of total unrecognized compensation costs related to share option awards, which will be recognized over a weighted-average period of 0.7 years.

Restricted Share Equivalents

The following table summarizes RSE award activity during fiscal 2024:


	Shares	Weighted-Average Grant Date Estimated Fair Value
Non-vested at October 1, 2023	0.9	$	39.74
Granted	0.5	34.54
Vested	(0.4)	38.55
Canceled	—	—
Non-vested at September 30, 2024	1.0	37.62

The estimated fair value of the award is determined using the closing share price of the Company’s common stock on the date of grant.

As of September 30, 2024, there was an estimated $22.5 of total unrecognized compensation costs related to RSEs, which will be recognized over a weighted-average period of 1.0 year. The weighted-average estimated fair value per RSE granted in fiscal

2024, 2023 and 2022 was $34.54, $40.17, and $42.49, respectively. The estimated fair value of RSEs vested in fiscal 2024, 2023 and 2022 was $15.6, $20.2, and $15.4, respectively.

Performance Restricted Share Equivalents

The following table summarizes PRSE award activity during fiscal 2024:


	Shares	Weighted-Average Grant Date Estimated Fair Value
Non-vested at October 1, 2023	0.4	$	60.56
Granted	0.2	45.96
Vested	(0.1)	56.53
Canceled	—	—
Non-vested at September 30, 2024	0.5	55.06

As of September 30, 2024, there was an estimated $10.1 of total unrecognized compensation costs related to PRSEs, which will be recognized over a weighted-average period of 1.3 years. The weighted-average estimated fair value per PRSE granted in fiscal 2024, 2023 and 2022 was $45.96, $58.55, and $56.53, respectively. The estimated fair value of PRSEs vested in fiscal 2024 was $4.8.

For PRSE awards granted subsequent to fiscal 2021, awards will vest by comparing the Company’s TSR during a certain three year period to the respective TSRs of companies in a selected performance peer group. Based upon the Company’s ranking in its performance peer group, a recipient of the PRSE award may earn a total award ranging from 0% to 200% of the target award. The fair value of each PRSE was estimated on the grant date using a Monte Carlo simulation. The assumptions for PRSE awards during the years ended September 30, 2024 and 2023 are summarized in the following table.


	2024		2023
Expected term (in years)	3.0		3.0
Expected stock price volatility	31.8	%	48.2	%
Risk-free interest rate	4.83	%	4.14	%
Fair value (per award granted)	45.96		58.55