SHARE-BASED COMPENSATION PLANS (Tables)

12 Months Ended

Sep. 30, 2018

SHARE-BASED COMPENSATION PLANS [Abstract]

The fair value of our share-based awards, as shown below, was estimated using the Black-Scholes model with the following weighted-average assumptions:

	Year Ended September 30,
	2018				2017				2016
Stock Options
Weighted-average grant date fair value		$	26.59			$	16.50			$	14.47
Expected term (in years)			6.68				6.57				6.56
Expected volatility			26	%			27	%			26	%
Risk-free rate of return			2.4	%			2.1	%			1.9	%
Dividend yield			1.0	%			1.2	%			0.3	%

	Year Ended September 30,
	2018				2017				2016
ESPP
Weighted-average grant date fair value		$	20.94			$	12.49			$	9.57
Expected term (in years)			0.50				0.50				0.50
Expected volatility			26	%			24	%			24	%
Risk-free rate of return			1.5	%			0.6	%			0.4	%
Dividend yield			1.1	%			1.3	%			0.5	%

Share Based Compensation Expense

Total share-based compensation expense for the years ended September 30, 2018, 2017 and 2016, is as follows:

	Year Ended September 30,
	2018			2017			2016
Income statement classifications:
Cost of goods sold	$	2,450		$	2,229		$	2,105
Research, development and technical		1,940			1,792			1,633
Selling and marketing		1,277			1,380			1,618
General and administrative		12,851			7,603			8,585
Tax benefit		(4,306	)		(4,339	)		(4,341	)
Total share-based compensation expense, net of tax	$	14,212		$	8,665		$	9,600

The grant of December 2017 included the provisions of stock option grants and restricted stock unit awards such that except in certain circumstances including termination for cause, once an employee meets the retirement eligibility requirements, any remaining unvested share-based awards will continue to vest regardless of termination of service. Consequently, the requisite service period for the award is satisfied upon retirement eligibility. Therefore, for those employees who have met the retirement eligibility at the grant date, we now record the total share-based compensation expense upon award; for those employees who will meet the retirement eligibility during the four-year vesting period, we now record the share-based compensation expense over the period from the grant date through the date of retirement eligibility, rather than over the four-year vesting period stated in the award agreement. Restricted stock units granted to non-employee directors on an annual basis vest 100% on the first anniversary of the award date.

Stock Option Activity

STOCK OPTION ACTIVITY

A summary of stock option activity under the EIP and OIP as of September 30, 2018, and changes during fiscal 2018 are presented below:

	Stock Options			Weighted Average Exercise Price		Weighted Average Remaining Contractual Term (in years)		Aggregate Intrinsic Value (in thousands)
Outstanding at September 30, 2017		1,517,061		$	44.17
Granted		152,282			95.19
Exercised		(488,029	)		39.45
Forfeited or canceled		(49,833	)		53.09
Outstanding at September 30, 2018		1,131,481		$	52.68		6.8	$	57,212

Exercisable at September 30, 2018		552,969		$	41.57		5.5	$	34,063

Expected to vest after September 30, 2018		575,758		$	63.16		8.0	$	23,120

Restricted Stock Awards and Restricted Stock Unit Awards

A summary of the status of the restricted stock awards and restricted stock unit awards, including PSUs outstanding that were awarded under the OIP as of September 30, 2018, and changes during fiscal 2018, are presented below:

	Restricted Stock Awards and Units			Weighted Average Grant Date Fair Value

Nonvested at September 30, 2017		346,513		$	52.43
Granted *		140,084			93.16
Vested		(134,165	)		49.73
Forfeited		(24,285	)		58.64
Nonvested at September 30, 2018		328,147		$	70.42

* Includes the initial amount of PSUs granted, which may be subject to downward or upward adjustment depending on the performance measures during the particular performance period pursuant to the PSU award agreement.