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STOCK-BASED COMPENSATION (Tables)

3 Months Ended

Dec. 31, 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 is as follows:

	Three Months Ended December 31,
(in thousands)	2019				2018
Stock-based compensation expense
Stock options	$	571			$	1,416
Restricted stock	7,370				5,742
Performance share units	2,260				—
	$	10,201			$	7,158

Summary of Stock Option Activity

A summary of stock option activity under all existing long-term incentive plans for the three months ended December 31, 2019 is presented in the following table:

	Three Months Ended December 31, 2019
(in thousands, except per share amounts and years)	Shares		Weighted Average Exercise Price				Weighted Average Remaining Contractual Term in Years		Aggregate Intrinsic Value
Outstanding at September 30, 2019	3,238		$	60.86
Exercised	(202)		38.02
Forfeited/Expired	(8)		38.02
Outstanding at December 31, 2019	3,028		$	62.44			5.30		$	—
Vested and expected to vest at December 31, 2019	3,028		$	62.44			5.30		$	—
Exercisable at December 31, 2019	2,632		$	62.44			4.93		$	—

Summary of Restricted Stock Awards and Performance Share Units and Changes in Restricted Stock and Performance Share Units Outstanding

A summary of the status of our performance share units as of December 31, 2019 and changes in performance share units outstanding during the three months then ended is presented below:

	Three Months Ended December 31, 2019
(in thousands, except per share amounts)	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
Non-vested performance share units outstanding at December 31, 2019	404			$	50.31

A summary of the status of our restricted stock awards as of December 31, 2019 and changes in non-vested restricted stock outstanding during the three months then ended is presented below:

	Three Months Ended December 31, 2019
(in thousands, except per share amounts)	Shares			Weighted Average Grant Date Fair Value per Share
Non-vested restricted stock outstanding at September 30, 2019	1,085			$	61.28
Granted	727			41.88
Vested (1)	(414	)		62.13
Forfeited	(2	)		60.59
Non-vested restricted stock outstanding at December 31, 2019	1,396			$	50.93

(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.

Weighted-Average Assumptions Used in the Calculation of the Fair Value of Awards

The weighted-average fair value calculations for performance share units granted during the three months ended December 31, 2019 and 2018 are based on the following weighted-average assumptions set forth in the table below. 

	Three Months Ended December 31, 2019			Three Months Ended December 31, 2018
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.

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Tabular disclosure of cost recognized for award under share-based payment arrangement by plan. Includes, but is not limited to, related tax benefit.

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Tabular disclosure for stock option plans. Includes, but is not limited to, outstanding awards at beginning and end of year, grants, exercises, forfeitures, and weighted-average grant date fair value.

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Tabular disclosure of the significant assumptions used during the year to estimate the fair value of stock options, including, but not limited to: (a) expected term of share options and similar instruments, (b) expected volatility of the entity's shares, (c) expected dividends, (d) risk-free rate(s), and (e) discount for post-vesting restrictions.

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Disclosure of the number and weighted-average grant date fair value for restricted stock and restricted stock units that were outstanding at the beginning and end of the year, and the number of restricted stock and restricted stock units that were granted, vested, or forfeited during the year.

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