Employee Benefit Plans

9 Months Ended

Jun. 30, 2025

Compensation Related Costs [Abstract]

Compensation Related Costs, General

EMPLOYEE BENEFIT PLANS

Stock-Based Compensation

The Company’s Stock Incentive Plan provides for the granting of equity awards, such as performance stock units (PSUs) and restricted stock units (RSUs), to executive officers, other key employees and non-management directors. PSUs are earned by achieving key performance goals and RSUs are earned through continued employment with the Company over a requisite time period. Each stock unit represents the contingent right to receive one share of the Company’s common stock if the performance criteria and/or vesting conditions are satisfied. The stock units have no dividend or voting rights until vested.

In October 2024, the Company granted 327,717 PSUs to its executive officers and other key employees. The number of units that ultimately vest depends on the Company’s relative position compared to its peers in achieving each of the performance criteria and can range from 0% to 300% of the number of units granted. These awards vest at the end of a three-year performance period ending September 30, 2027. The grant date fair value of these equity awards was $176.39 per unit. Compensation expense related to this grant was $4.8 million and $14.5 million in the three and nine months ended June 30, 2025, respectively, based on an estimate of the Company’s performance against a market index or its peer group, the elapsed portion of the performance period and the grant date fair value of the award.

During the nine months ended June 30, 2025, the Company granted approximately 610,000 RSUs to approximately 1,600 recipients, including executive officers, other key employees and non-management directors. The weighted average grant date fair value of these equity awards was $156.12 per unit, and they vest annually in equal installments over periods of three to five years. Compensation expense related to these grants was $4.6 million and $20.2 million in the three and nine months ended June 30, 2025, respectively. Compensation expense in the nine month period included $8.3 million of expense recognized for employees that were retirement eligible on the date of grant.

Total stock-based compensation expense related to the Company’s equity awards was $23.4 million and $93.2 million during the three and nine months ended June 30, 2025, respectively, compared to $25.0 million and $84.4 million during the three and nine months ended June 30, 2024.