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STOCK-BASED COMPENSATION (Tables) | 12 Months Ended
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Sep. 30, 2020
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 drilling services operating expense, research and development expense and selling, general and administrative expense in fiscal years 2020, 2019 and 2018 is as follows:
| September 30,
(in thousands) | 2020 |  | 2019 |  | 2018
Stock-based compensation expense |  |  |  |  |
Stock options | $ | 1,753 |  |  | $ | 3,721 |  |  | $ | 7,913 |
Restricted stock | 30,605 |  |  | 26,149 |  |  | 23,774 |
Performance share units | 7,454 |  |  | 4,422 |  |  | — |
Stock-based compensation benefit included in restructuring charges | (3,483 | ) |  | — |  |  | — |
| $ | 36,329 |  |  | $ | 34,292 |  |  | $ | 31,687 |
Weighted-Average Assumptions Used in Calculation of Fair Value of Awards |
| 2018
Risk-free interest rate (1) | 2.2 | %
Expected stock volatility (2) | 36.1 | %
Dividend yield (3) | 4.7 | %
Expected term (in years) (4) | 6.0 |
(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. 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.
| 2020 |  | 2019
Risk-free interest rate (1) | 1.6 | % |  | 2.7 | %
Expected stock volatility (2) | 34.8 | % |  | 35.9 | %
Expected term (in years) | 3.2 |  |  | 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.
Summary of Stock Option Activity | The following summary reflects the stock option activity for our common stock and related information for fiscal years 2020, 2019 and 2018:
| 2020 |  | 2019 |  | 2018
(shares in thousands) | Shares |  | Weighted-Average Exercise Price |  | Shares |  | Weighted-Average Exercise Price |  | Shares |  | Weighted-Average Exercise Price
Outstanding at October 1, | 3,238 |  |  | $ | 60.86 |  |  | 3,499 |  |  | $ | 58.62 |  |  | 3,278 |  |  | $ | 56.41 |
Granted | — |  |  | — |  |  | — |  |  | — |  |  | 694 |  |  | 59.03 |
Exercised | (201 | ) |  | 38.02 |  |  | (217 | ) |  | 24.46 |  |  | (375 | ) |  | 36.88 |
Forfeited/Expired | (174 | ) |  | 61.76 |  |  | (44 | ) |  | 62.14 |  |  | (98 | ) |  | 70.77 |
Outstanding on September 30, | 2,863 |  |  | $ | 62.41 |  |  | 3,238 |  |  | $ | 60.86 |  |  | 3,499 |  |  | $ | 58.62 |
Exercisable on September 30, | 2,516 |  |  | $ | 62.38 |  |  | 2,482 |  |  | $ | 60.38 |  |  | 2,193 |  |  | $ | 56.31 |
Summary of Information About Stock Options | The following table summarizes information about stock options at September 30, 2020 (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
$40.00 to $55.00 | 472 |  |  | 1.82 |  | $ | 51.86 |  |  | 462 |  |  | $ | 51.83 |
$55.00 to $70.00 | 1,918 |  |  | 5.07 |  | 60.56 |  |  | 1,641 |  |  | 60.82 |
$70.00 to $85.00 | 473 |  |  | 4.92 |  | 80.47 |  |  | 412 |  |  | 80.43 |
| 2,863 |  |  |  |  |  |  | 2,515 |  |  |
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, 2020, and of changes in restricted stock outstanding during the fiscal years ended September 30, 2020, 2019 and 2018, is as follows:
| 2020 |  | 2019 |  | 2018
(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
Non-vested restricted stock outstanding at October 1, | 1,085 |  |  | $ | 61.28 |  |  | 1,001 |  |  | $ | 63.74 |  |  | 659 |  |  | $ | 70.76 |
Granted (1) | 781 |  |  | 39.99 |  |  | 475 |  |  | 58.45 |  |  | 626 |  |  | 59.53 |
Vested (2) | (501 | ) |  | 59.46 |  |  | (371 | ) |  | 64.32 |  |  | (258 | ) |  | 70.60 |
Forfeited | (85 | ) |  | 48.98 |  |  | (20 | ) |  | 60.85 |  |  | (26 | ) |  | 66.73 |
Non-vested restricted stock outstanding at September 30, | 1,280 |  |  | $ | 49.81 |  |  | 1,085 |  |  | $ | 61.28 |  |  | 1,001 |  |  | $ | 63.74 |
(1) | The number of restricted stock awards granted includes phantom shares that confer the benefits of owning company stock without the actual ownership or transfer of any shares. There were 20,616 phantom shares granted during fiscal year 2020.
(2) 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 September 30, 2020 and changes in non-vested performance share units outstanding during the fiscal year ended September 30, 2020 is presented below:
| 2020 |  | 2019
(in thousands, except per share amounts) | Shares |  | Weighted-Average Grant Date Fair Value per Share |  | Shares |  | Weighted-Average Grant Date Fair Value per Share
Non-vested performance share units outstanding at September 30, 2019 | 145 |  |  | $ | 62.66 |  |  | — |  |  | $ | — |
Granted | 259 |  |  | 43.40 |  |  | 145 |  |  | 62.66 |
Forfeited | (67 | ) |  | 46.35 |  |  | — |  |  | — |
Non-vested performance share units outstanding at September 30, 2020 | 337 |  |  | $ | 51.09 |  |  | 145 |  |  | $ | 62.66 |

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