Equity-Based Compensation (Tables)

6 Months Ended

Mar. 31, 2020

Share-based Payment Arrangement [Abstract]

Summary of Equity-Based Compensation Expense

A summary of equity-based compensation expense recognized during the three and six months ended March 31, 2020 and 2019 is as follows:

	Three months ended March 31,				Six months ended March 31,
	2020		2019		2020		2019
Stock options	$	2,510	$	1,363	$	4,634	$	2,314

Fair Value of Stock Option Awards

The fair value of the stock option awards during the six months ended March 31, 2020 and from June 20, 2018 through September 30, 2019 was determined on the grant date using the Black-Scholes valuation model based on the following weighted-average assumptions:

	March 31, 2020		September 30, 2019
Expected volatility(1)	25.2	%	26.7	%
Expected dividend yield(2)	—	%	—	%
Expected term(3)	6 years		6 years
Risk-free interest rate(4)	1.5	%	2.5	%

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1.Expected volatility is based on the historical volatility of a selected peer group over a period equivalent to the expected term.

2.The Company has assumed a dividend yield of zero as management has no plans to declare dividends in the foreseeable future.

3.Expected term represents the estimated period of time until an award is exercised and was determined using the simplified method as details of employee exercise behavior are limited due to limited historical data.

4.The risk-free rate is an interpolation of yields on U.S. Treasury securities with maturities equivalent to the expected term.

Summary of Stock Option Activity

A summary of stock option activity for the six months ended March 31, 2020 is as follows:

	Stock Options	Weighted Average Exercise Price
Outstanding at beginning of period	4,240,695	$	18.33
Granted	1,094,000	30.99
Exercised	(166,709)	16.11
Forfeited	(39,331)	22.12
Outstanding at end of period	5,128,655	$	21.08