Stock-Based Compensation

6 Months Ended

Mar. 31, 2014

Stock-Based Compensation

Stock-Based Compensation

Note 10 - Stock-Based Compensation

We recorded non-cash compensation expense related to stock-based awards for the three- and six-month periods ended March 31, 2014 and 2013 as follows (in thousands):

	Six Months Ended				Three Months Ended
	March 31,				March 31,
	2014		2013		2014		2013
Cost of sales	$	205	$	4	$	144	$	4
Selling, general and administrative	2,380		55		1,581		55
	$	2,585	$	59	$	1,725	$	59

As of March 31, 2014, there was $26.3 million of unrecognized compensation cost related to unvested RSUs. This amount is expected to be recognized over a weighted-average period of 1.7 years. Based upon the expected forfeitures and the expected vesting of performance-based RSUs, the aggregate grant-date fair value of unvested RSUs at March 31, 2014 expected to ultimately vest is $17.0 million.

We are required to estimate forfeitures at the time of grant and revise those estimates in subsequent periods on a cumulative basis in the period the estimated forfeiture rate changes for all stock-based awards when significant events occur. We consider our historical experience with employee turnover as the basis to arrive at our estimated forfeiture rate. The forfeiture rate was estimated to be 12.5% per year as of March 31, 2014. To the extent the actual forfeiture rate is different from what we have estimated, stock-based compensation related to these awards will be different from our expectations.