Stock-Based Compensation (Tables)

6 Months Ended

Mar. 31, 2022

Share-based Payment Arrangement [Abstract]

Summary of Profit Interest Units and their Corresponding Distribution Thresholds

The following table summarizes the Company’s profits interest units distribution thresholds as of March 31, 2022, which serve as a cashless exercise price:

Distribution Threshold (per unit)(1)	Service-Based Units Outstanding	Hybrid Units Outstanding
$5.42 – $6.92	4,142,102	—
$6.93 – $8.42	4,142,102	—
$8.43 – $9.42	5,481,420	1,118,019
$9.43 – $10.67	2,295,274	559,010
Total	16,060,898	1,677,029

_____________

(1)The exercise price of units outstanding as of March 31, 2022 reflect the non-cash adjustments to the unit thresholds as a result of the cash dividends paid by the Company. As such, the distribution thresholds noted above have been reduced by $0.08 per unit during the six months ended March 31, 2022 to reflect the adjustment.

Summary of Profits Interest Units Activity

The following tables summarize the Company’s profits interest award activity during the six months ended March 31, 2022:

	Service-Based Units					Hybrid Units
	Units	Weighted Average Exercise Price		Weighted Average Fair Value		Units	Weighted Average Exercise Price		Weighted Average Fair Value
Nonvested units, September 30, 2021	11,713,015	$	8.13	$	8.97	1,777,770	$	9.54	$	7.88
Vested units	(1,005,749)	$	9.43	$	7.59	(592,590)	$	9.54	$	7.48
Nonvested units, March 31, 2022(1)(2)	10,707,266	$	8.01	$	9.10	1,185,180	$	9.54	$	8.09

	Service-Based Units					Hybrid Units
	Units	Weighted Average Exercise Price		Weighted Average Fair Value		Units	Weighted Average Exercise Price		Weighted Average Fair Value
Vested units, September 30, 2021	4,347,883	$	7.68	$	9.15	—	$	—	$	—
Vested units	1,005,749	$	9.43	$	7.59	592,590	$	9.54	$	7.48
Adjustment to vested hybrid units(3)	—	$	—	$	—	(100,741)	$	9.54	$	7.48
Vested units, March 31, 2022(1)(2)(4)(5)	5,353,632	$	8.01	$	8.86	491,849	$	9.54	$	7.48

_____________

(1)The aggregate intrinsic value of all nonvested and vested service-based units outstanding was $28.0 million.

(2)The aggregate intrinsic value of all nonvested and vested hybrid units outstanding was $0.3 million.

(3)The hybrid awards vest based on achievement of a performance target. For the awards that vested during the second quarter of fiscal 2022, 83% of the awards met the performance target resulting in a 17% reduction in the number of vested units.

(4)The aggregate intrinsic value of all vested service-based units was $9.3 million.

(5)The aggregate intrinsic value of all vested hybrid units was $0.1 million.

The following tables summarize the Company’s RSUs and activity during the six months ended March 31, 2022:

	Total RSUs
	Number of RSUs	Weighted Average Grant Date Fair Value
Nonvested, September 30, 2021	2,086,541	$	17.56
Granted	2,625,545	$	17.04
Vested	(353,181)	$	13.47
Forfeited	(266,421)	$	17.82
Nonvested, March 31, 2022	4,092,484	$	17.21

	Total RSUs
	Number of RSUs	Weighted Average Grant Date Fair Value
Vested, September 30, 2021	776,544	$	17.59
Units vested	353,181	$	13.47
Units settled	(265,953)	$	14.33
Vested, March 31, 2022	863,772	$	16.01

Summary of Weighted Average Assumptions Used to Estimate the Fair Value of the Profits Interest Units which are outstanding

The weighted-average assumptions used to estimate the fair value of the options as of March 31, 2022, were as follows:

Expected term (in years)	6.0
Risk-free interest rate	1.24	%
Expected volatility	39.01	%
Expected dividend yield	—	%

Schedule of Summary of stock-based compensation expense recognized by award type

The table below summarizes stock-based compensation expense recognized by award type:

	Three Months Ended March 31,				Six Months Ended March 31,
	2022		2021		2022		2021
	(dollars in thousands)
Profits interest awards:
Service-based profits interest awards	$	7,945	$	27,913	$	16,929	$	30,035
Hybrid profits interest awards	1,081		—		3,498		—
Total profits interest awards	9,026		27,913		20,427		30,035
Options	767		—		1,724		—
Pre-IPO Management Incentive Compensation Plan awards	—		1,138		—		2,014
RSUs	12,290		—		24,298		—
ESPP	107		—		107		—
Total stock-based compensation expense(1)	$	22,190	$	29,051	$	46,556	$	32,049

_____________

(1)In addition to the stock-based compensation expense recognized for the awards listed above, $1.1 million and $0.4 million of expense was recognized in relation to partial recourse notes for the six months ended March 31, 2022 and 2021, respectively. No expense was recognized in relation to partial recourse notes during the three months ended March 31, 2022 and 2021. See Note 15 for further information.