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Share-Based Compensation
 6 Months Ended
Mar. 31, 2014
Share-Based Compensation [Abstract]  
Share-Based Compensation

11.       SHARE-BASED COMPENSATION

We have various share-based compensation programs, which include stock options, deferred stock units, and restricted stock. Under all programs, the terms of the awards are fixed at the grant date. We issue shares from treasury stock upon the exercise of stock options, the payout of deferred stock units, and the issuance of restricted stock awards. As of 31 March 2014, there were 5,656,488 shares available for future grant under our Long-Term Incentive Plan, which is shareholder approved.

 

During the six months ended 31 March 2014, we granted 778,928 stock options at a weighted-average exercise price of $107.69 and an estimated fair value of $28.72 per option. The fair value of these options was estimated using a Black Scholes option valuation model that used the following assumptions:

    
 Expected volatility29.8%–30.3%
 Expected dividend yield2.5%
 Expected life (in years)7.4–8.4 
 Risk-free interest rate2.3%–2.7%

In addition, we granted 216,622 deferred stock units at a weighted-average grant-date fair value of $108.03 and 12,649 restricted shares at a weighted-average grant-date fair value of $107.69.

Share-based compensation cost recognized in the consolidated income statement is summarized below:
               
   Three Months Ended   Six Months Ended 
   31 March   31 March 
   2014  2013   2014  2013 
 Before-Tax Share-Based Compensation Cost$ 11.6 $ 12.3  $ 23.4 $ 22.4 
 Income tax benefit  (3.9)   (4.5)    (8.2)   (8.1) 
 After-Tax Share-Based Compensation Cost$ 7.7 $ 7.8  $ 15.2 $ 14.3 
               

Before-tax share-based compensation cost is primarily included in selling and administrative expense on our consolidated income statements. The amount of share-based compensation cost capitalized in 2014 and 2013 was not material.