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Stock-Based Compensation | 12 Months Ended
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Sep. 30, 2021
Share-based Payment Arrangement, Noncash Expense [Abstract] |
Stock-Based Compensation | STOCK-BASED COMPENSATION The Company's stock-based compensation plans include performance shares, restricted stock, restricted stock units, and stock options. Although the Company has discretion, shares distributed under these plans are issued from treasury stock. Total compensation expense and income tax benefits for stock options and incentive shares follows. The Company's performance shares awards are marked-to-market each period based on changes in the stock price.
| 2019 |  |  | 2020 |  |  | 2021
Performance shares | $ | 96 |  |  | 98 |  |  | 203 |
Restricted stock and restricted stock units | 21 |  |  | 11 |  |  | 21 |
Stock options | 3 |  |  | 1 |  |  | — |
Total stock compensation expense | $ | 120 |  |  | 110 |  |  | 224 |
Income tax benefits recognized | $ | 20 |  |  | 18 |  |  | 27 |
As of September 30, 2021, total unrecognized compensation expense related to unvested shares awarded under these plans was $164, which is expected to be recognized over a weighted-average period of 1.8 years. Performance Shares, Restricted Stock and Restricted Stock Units The Company's incentive shares plans include performance shares awards which distribute the value of common stock to key management employees at the conclusion of a three-year period subject to certain operating performance conditions and other terms and restrictions. The form of distribution is primarily shares of common stock, with a portion in cash in the first quarter following the end of the applicable three-year performance period. Dividend equivalents are only paid on earned awards after the performance period has concluded. Compensation expense for performance shares is recognized over the service period based on the number of shares ultimately expected to be earned. Performance shares awards are accounted for as liabilities in accordance with ASC 718, Compensation - Stock Compensation, with compensation expense adjusted at the end of each reporting period to reflect the change in fair value of the awards. Information related to performance share payouts for the years ended September 30, 2020 and 2021 follows (shares in thousands):
| 2020 |  |  | 2021
Performance period | 2017 - 2019 |  | 2018 - 2020
Percent payout | 107 | % |  | 100 | %
Total shares earned | 2,008 |  | 1,535
Shares distributed in cash, primarily for tax withholding | 883 |  | 672
As of September 30, 2021, approximately 1,327,000 shares awarded primarily in 2019 were outstanding, contingent on the Company achieving its performance objectives through 2021. The objectives for these shares were met at the 101 percent level and the shares will be distributed in early 2022. Additionally, the rights to receive approximately 1,547,000 and 1,497,000 common shares awarded in 2021 and 2020, respectively, are outstanding and contingent upon the Company achieving its performance objectives through 2023 and 2022, respectively. Incentive shares plans also include restricted stock awards and restricted stock units. Restricted stock awards involve distribution of common stock to key management employees subject to cliff vesting at the end of service periods ranging from three to ten years while restricted stock units granted to employees cliff vest at the end of a three-year period. The fair value of restricted stock awards and restricted stock units is determined based on the average of the high and low market prices of the Company's common stock on the date of grant, with compensation expense recognized ratably over the applicable vesting period. In 2021, approximately 87,000 shares of restricted stock vested as a result of participants fulfilling the applicable service requirements. Consequently, approximately 57,000 shares were issued while 30,000 shares were withheld for income taxes in accordance with minimum withholding requirements. As of September 30, 2021, there were approximately 1,269,000 shares of unvested restricted stock and restricted stock units outstanding. In addition to the employee stock option and incentive shares plans, in 2021 the Company awarded approximately 19,000 shares of restricted stock and 2,000 restricted stock units under the restricted stock plan for non-management directors. As of September 30, 2021, approximately 99,000 shares were available for issuance under this plan. As of September 30, 2021, 5.1 million shares remained available for award under incentive shares plans. Changes in shares outstanding but not yet earned under incentive shares plans during the year ended September 30, 2021 follow (shares in thousands; assumes 100 percent payout of unvested awards):
| Shares |  | Average Grant Date Fair Value Per Share
Beginning of year | 5,916 |  |  |  | $ | 67.22 |  |
Granted | 2,095 |  |  |  | $ | 71.75 |  |
Earned/vested | (1,867) |  |  |  | $ | 63.28 |  |
Canceled | (503) |  |  |  | $ | 67.54 |  |
End of year | 5,641 |  |  |  | $ | 70.22 |  |
Information related to incentive shares plans follows:
| 2019 |  |  | 2020 |  |  | 2021 |
Total fair value of shares earned/vested | $ | 145 |  |  | 164 |  |  | 131 |
Share awards distributed in cash, primarily for tax withholding | $ | 73 |  |  | 81 |  |  | 58 |
Stock Options There were no stock option grants in 2021, 2020 and 2019. The Company's stock option plan s expired in fiscal year 2021. Previously awarded stock options allow key officers and employees to purchase common stock at specified prices, which are equal to 100 percent of the closing market price of the Company's stock on the date of grant. Options generally vest one-third in each of the three years subsequent to grant and expire 10 years from the date of grant. Compensation expense is recognized ratably over the vesting period based on the number of options expected to vest. Changes in shares subject to options during the year ended September 30, 2021 follow (shares in thousands):
| Weighted- Average Exercise Price Per Share |  | Shares |  | Total Intrinsic Value of Shares |  | Average Remaining Life (Years)
Beginning of year |  | $ | 58.42 |  |  |  | 4,133 |  |  |  |  |  |  |  |  |
Options granted |  | $ | — |  |  |  | — |  |  |  |  |  |  |  |  |
Options exercised |  | $ | 58.85 |  |  |  | (2,071) |  |  |  |  |  |  |  |  |
Options canceled |  | $ | 61.19 |  |  |  | (45) |  |  |  |  |  |  |  |  |
End of year |  | $ | 57.96 |  |  |  | 2,017 |  |  |  | $ | 75 |  |  |  |  | 3.1 |
Exercisable at end of year |  | $ | 57.96 |  |  |  | 2,017 |  |  |  | $ | 75 |  |  |  |  | 3.1 |
Information related to stock options follows:
| 2019 |  |  | 2020 |  |  | 2021 |
Cash received for option exercises | $ | 40 |  |  | 126 |  |  | 114 |
Intrinsic value of options exercised | $ | 16 |  |  | 47 |  |  | 53 |
Tax benefits related to option exercises | $ | 8 |  |  | 8 |  |  | 6 |

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- Definition The entire disclosure for share-based payment arrangement. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 718 -URI http://asc.fasb.org/topic&trid=2228938 + Details
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