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STOCK-BASED COMPENSATION (Tables) | 12 Months Ended
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Sep. 30, 2019
Share-based Payment Arrangement [Abstract] |
Summary of Compensation Cost for Stock-Based Payment Arrangements | A summary of compensation cost for stock-based payment arrangements recognized in contract drilling services operating expense and selling, general and administrative expense in fiscal years 2019, 2018 and 2017 is as follows:
| September 30,
(in thousands) | 2019 |  | 2018 |  | 2017
Stock-based compensation expense |  |  |  |  |
Stock options | $ | 3,721 |  |  | $ | 7,913 |  |  | $ | 7,439 |
Restricted stock | 26,149 |  |  | 23,774 |  |  | 18,744 |
Performance share units | 4,422 |  |  | — |  |  | — |
| $ | 34,292 |  |  | $ | 31,687 |  |  | $ | 26,183 |
Weighted-Average Assumptions Used in Calculation of Fair Value of Awards | The weighted-average fair value calculations for performance share units granted within the fiscal period are based on the following weighted-average assumptions set forth in the table below.
| 2019
Risk-free interest rate (1) | 2.7 | %
Expected stock volatility (2) | 35.9 | %
Expected term (in years) | 3.0 |
(1) | The risk-free interest rate is based on U.S. Treasury securities for the expected term of the performance share units.
(2) Expected volatilities are based on the daily closing price of our stock based upon historical experience over a period which approximates the expected term of the performance share units.
| 2018 |  | 2017
Risk-free interest rate (1) | 2.2 | % |  | 2.0 | %
Expected stock volatility (2) | 36.1 | % |  | 38.9 | %
Dividend yield (3) | 4.7 | % |  | 3.7 | %
Expected term (in years) (4) | 6.0 |  |  | 5.5 |
(1) | The risk-free interest rate is based on U.S. Treasury securities for the expected term of the option.
(2) | Expected volatilities are based on the daily closing price of our stock based upon historical experience over a period which approximates the expected term of the option.
(3) | The dividend yield is based on our current dividend yield.
(4) The expected term of the options granted represents the period of time that they are expected to be outstanding. We estimate term of option granted based on historical experience with grants and exercise.
Summary of Stock Option Activity | The following summary reflects the stock option activity for our common stock and related information for fiscal years 2019, 2018 and 2017:
| 2019 |  | 2018 |  | 2017
(shares in thousands) | Shares |  | Weighted-Average Exercise Price |  | Shares |  | Weighted-Average Exercise Price |  | Shares |  | Weighted-Average Exercise Price
Outstanding at October 1, | 3,499 |  |  | $ | 58.62 |  |  | 3,278 |  |  | $ | 56.41 |  |  | 3,312 |  |  | $ | 51.74 |
Granted | — |  |  | — |  |  | 694 |  |  | 59.03 |  |  | 396 |  |  | 76.61 |
Exercised | (217 | ) |  | 24.46 |  |  | (375 | ) |  | 36.88 |  |  | (415 | ) |  | 38.04 |
Forfeited/Expired | (44 | ) |  | 62.14 |  |  | (98 | ) |  | 70.77 |  |  | (15 | ) |  | 68.32 |
Outstanding on September 30, | 3,238 |  |  | $ | 60.86 |  |  | 3,499 |  |  | $ | 58.62 |  |  | 3,278 |  |  | $ | 56.41 |
Exercisable on September 30, | 2,482 |  |  | $ | 60.38 |  |  | 2,193 |  |  | $ | 56.31 |  |  | 2,167 |  |  | $ | 50.87 |
Shares available to grant | 2,999 |  |  |  |  | 5,140 |  |  |  |  | 5,624 |  |  |
Summary of Information About Stock Options | The following table summarizes information about stock options at September 30, 2019 (shares in thousands):
| Outstanding Stock Options |  | Exercisable Stock Options
Range of Exercise Prices | Shares |  | Weighted-Average Remaining Life |  | Weighted-Average Exercise Price |  | Shares |  | Weighted-Average Exercise Price
$0.00 to $40.00 | 209 |  |  | 0.17 |  | $ | 38.02 |  |  | 209 |  |  | $ | 38.02 |
$40.00 to $55.00 | 493 |  |  | 2.93 |  | 51.85 |  |  | 468 |  |  | 51.78 |
$55.00 to $70.00 | 2,032 |  |  | 6.09 |  | 60.53 |  |  | 1,432 |  |  | 61.26 |
$70.00 to $85.00 | 504 |  |  | 5.95 |  | 80.49 |  |  | 373 |  |  | 80.34 |
| 3,238 |  |  |  |  |  |  | 2,482 |  |  |
Summary of the Status of Restricted Stock Awards and Changes in Restricted Stock Outstanding | A summary of the status of our restricted stock awards as of September 30, 2019, and of changes in restricted stock outstanding during the fiscal years ended September 30, 2019, 2018 and 2017, is as follows:
| 2019 |  | 2018 |  | 2017
(shares in thousands) | Shares |  | Weighted-Average Grant Date Fair Value per Share |  | Shares |  | Weighted-Average Grant Date Fair Value per Share |  | Shares |  | Weighted-Average Grant Date Fair Value per Share
Outstanding at October 1, | 1,001 |  |  | $ | 63.74 |  |  | 659 |  |  | $ | 70.76 |  |  | 648 |  |  | $ | 64.24 |
Granted | 475 |  |  | 58.45 |  |  | 626 |  |  | 59.53 |  |  | 292 |  |  | 78.69 |
Vested (1) | (371 | ) |  | 64.32 |  |  | (258 | ) |  | 70.60 |  |  | (271 | ) |  | 63.81 |
Forfeited | (20 | ) |  | 60.85 |  |  | (26 | ) |  | 66.73 |  |  | (10 | ) |  | 68.09 |
Outstanding on September 30, | 1,085 |  |  | $ | 61.28 |  |  | 1,001 |  |  | $ | 63.74 |  |  | 659 |  |  | $ | 70.76 |
(1) The number of restricted stock awards vested includes shares that we withheld on behalf of our employees to satisfy the statutory tax withholding requirements. A summary of the status of our performance share units as of the fiscal year ended September 30, 2019 is presented below:
| Shares |  | Weighted-Average Grant Date Fair Value per Share
Outstanding at October 1, | — |  |  | $ | — |
Granted | 145 |  |  | 62.66 |
Outstanding on September 30, | 145 |  |  | $ | 62.66 |

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