XML 37 R18.htm IDEA: XBRL DOCUMENT
v3.21.2

Employee Benefit Plans | 12 Months Ended
--- | ---
Sep. 30, 2021
Compensation Related Costs [Abstract] |
Employee Benefits Plans | EMPLOYEE BENEFIT PLANS The Company offers its employees a comprehensive compensation and benefits package, which includes a broad range of benefits, including medical, dental and vision healthcare insurance and paid parental leave. In addition to base pay, eligible employees may participate in the Company’s 401(k) plan, employee stock purchase plan, short-term incentive bonus program and/or its stock compensation plans, as described below. Deferred Compensation Plans The Company has a 401(k) plan for all employees who have been with the Company for a period of six months or more. The Company matches portions of employees’ voluntary contributions. The Company recorded $30.3 million, $23.4 million and $21.7 million of expense for matching contributions in fiscal 2021, 2020 and 2019, respectively. The Company’s Supplemental Executive Retirement Plan (SERP) is a non-qualified deferred compensation program that provides benefits payable to certain management employees upon retirement, death or termination of employment. Under the SERP, the Company accrues an unfunded benefit based on a percentage of the eligible employees’ salaries, as well as an interest factor based upon a predetermined formula. The Company’s liabilities related to the SERP were $50.4 million and $44.5 million at September 30, 2021 and 2020, respectively. The Company recorded $7.0 million, $6.5 million and $5.8 million of expense for this plan in fiscal 2021, 2020 and 2019, respectively. The Company has a deferred compensation plan available to a select group of employees which allows participating employees to contribute compensation into the plan on a before tax basis and defer income taxation on the contributions until the funds are withdrawn from the plan. The participating employees designate investments for their contributions; however, the Company is not required to invest the contributions in the designated investments. The Company’s net liabilities related to the deferred compensation plan were $124.5 million and $91.0 million at September 30, 2021 and 2020, respectively. The Company records as expense the amount that the employee contributions would have earned had the funds been invested in the designated investments. Related to this plan, the Company recorded expense of $21.7 million, $5.3 million and $2.9 million in fiscal 2021, 2020 and 2019, respectively. Employee Stock Purchase Plan The Company’s Employee Stock Purchase Plan provides eligible employees the opportunity to purchase common stock of the Company at a discounted price of 85% of the fair market value of the stock on the designated dates of purchase. The price to eligible employees may be further discounted depending on the average fair market value of the stock during the period and certain other criteria. Under the terms of the plan, the total fair market value of common stock that an eligible employee may purchase each year is limited to the lesser of 15% of the employee’s annual compensation or $25,000. Under the plan, employees purchased 112,995 shares for $7.5 million in fiscal 2021, 131,348 shares for $5.6 million in fiscal 2020 and 141,661 shares for $4.6 million in fiscal 2019. At September 30, 2021, the Company had 2.7 million shares of common stock reserved for issuance pursuant to the Employee Stock Purchase Plan. Incentive Bonus Plan The Company’s Incentive Bonus Plan provides for the Compensation Committee to award short-term performance bonuses to senior management based upon the level of achievement of certain criteria. For fiscal 2021, 2020 and 2019, the Compensation Committee approved awards whereby certain executive officers could earn performance bonuses based upon percentages of the Company’s pre-tax income. Compensation expense related to these plans was $61.6 million, $34.3 million and $24.4 million in fiscal 2021, 2020 and 2019, respectively. Stock-Based Compensation The Company’s Stock Incentive Plan provides for the granting of stock options and restricted stock units to executive officers, other key employees and non-management directors. Restricted stock unit awards may be based on performance (performance-based) or on service over a requisite time period (time-based). At September 30, 2021, the Company had 11.9 million shares of common stock reserved for issuance and 7.0 million shares available for future grants under the Stock Incentive Plan. Time-Based Restricted Stock Unit (RSU) Equity Awards Time-based RSUs represent the contingent right to receive one share of the Company’s common stock if the vesting conditions are satisfied. The time-based RSUs have no dividend or voting rights during the vesting period. During fiscal 2021, 2020 and 2019, time-based RSUs were granted to the Company’s executive officers, other key employees and non-management directors (collectively, approximately 1,030, 960 and 900 recipients, respectively). These awards vest annually in equal installments over periods of three to five years. The following table provides additional information related to time-based RSU activity during fiscal 2021, 2020 and 2019. The number of restricted stock units vested includes shares of common stock withheld by the Company on behalf of employees to satisfy the tax withholding requirements.
| Year Ended September 30,
| 2021 |  | 2020 |  | 2019
| Number of Restricted Stock Units |  | Weighted Average Grant Date Fair Value |  | Number of Restricted Stock Units |  | Weighted Average Grant Date Fair Value |  | Number of Restricted Stock Units |  | Weighted Average Grant Date Fair Value
Outstanding at beginning of year | 4,725,701 |  |  | $ | 34.79 |  |  | 4,889,534 |  |  | $ | 33.01 |  |  | 4,797,922 |  |  | $ | 31.77 |
Granted | 856,615 |  |  | 83.13 |  |  | 1,657,935 |  |  | 35.98 |  |  | 1,796,200 |  |  | 33.75 |
Vested | (1,644,263) |  |  | 33.26 |  |  | (1,651,840) |  |  | 30.85 |  |  | (1,430,826) |  |  | 29.83 |
Cancelled | (120,788) |  |  | 39.16 |  |  | (169,928) |  |  | 33.24 |  |  | (273,762) |  |  | 32.82 |
Outstanding at end of year | 3,817,265 |  |  | $ | 46.16 |  |  | 4,725,701 |  |  | $ | 34.79 |  |  | 4,889,534 |  |  | $ | 33.01 |
The total fair value of shares vested on the vesting date during fiscal 2021, 2020 and 2019 was $131.3 million, $95.6 million and $56.9 million, respectively. For fiscal 2021, 2020 and 2019, compensation expense related to time-based RSUs was $56.5 million, $50.6 million and $51.8 million, respectively. At September 30, 2021, there was $130.3 million of unrecognized compensation expense related to unvested time-based RSU awards. This expense is expected to be recognized over a weighted average period of 2.6 years. Performance-Based Restricted Stock Unit (RSU) Equity Awards During fiscal 2021, 2020 and 2019, performance-based RSU equity awards that vest at the end of three-year performance periods were granted to the Company’s executive officers. The number of units that ultimately vest depends on the Company’s relative position as compared to its peers in achieving certain performance criteria and can range from 0% to 200% of the number of units granted. The performance criteria are total shareholder return, return on investment, SG&A expense containment and gross profit. Each of these performance-based RSUs represents the contingent right to receive one share of the Company’s common stock if the vesting conditions and performance criteria are satisfied. The performance-based RSUs have no dividend or voting rights during the performance period. Compensation expense related to these grants is based on the Company’s performance against its peer group, the elapsed portion of the performance period and the grant date fair value of the award. The following table provides additional information related to the performance-based RSUs outstanding at September 30, 2021.
Grant Date |  | Vesting Date |  | Target Number of Performance Units |  | Grant Date Fair Value per Unit |  | Compensation Expense Year Ended September 30,
| 2021 |  | 2020 |  | 2019
|  |  |  |  |  |  |  | (In millions)
November 2018 |  | September 2021 |  | 360,000 |  | $ | 37.75 |  |  | $ | 7.2 |  |  | $ | 6.7 |  |  | $ | 6.1 |
November 2019 |  | September 2022 |  | 360,000 |  | 52.54 |  |  | 10.1 |  |  | 9.3 |  |  | — |
November 2020 |  | September 2023 |  | 360,000 |  | 70.60 |  |  | 12.5 |  |  | — |  |  | — |
|  |  |  |  |  |  |  | $ | 29.8 |  |  | $ | 16.0 |  |  | $ | 6.1 |
In October 2021, the Compensation Committee approved the issuance of the performance-based RSUs that vested in September 2021 in the form of 630,000 shares of common stock to satisfy the awards. Stock Options Stock options are granted at exercise prices which equal the market value of the Company’s common stock at the date of the grant. The options outstanding at September 30, 2021 are all exercisable and expire 10 years after the dates on which they were granted. The Company did not grant stock options during fiscal 2021, 2020 or 2019. The following table provides information related to stock option activity during those years.
| Year Ended September 30,
| 2021 |  | 2020 |  | 2019
| Stock Options |  | Weighted Average Exercise Price |  | Stock Options |  | Weighted Average Exercise Price |  | Stock Options |  | Weighted Average Exercise Price
Outstanding at beginning of year | 2,224,415 |  |  | $ | 19.94 |  |  | 3,184,157 |  |  | $ | 19.53 |  |  | 5,856,959 |  |  | $ | 17.25 |
Exercised | (1,108,639) |  |  | 16.02 |  |  | (959,742) |  |  | 18.58 |  |  | (2,634,802) |  |  | 14.47 |
Cancelled or expired | — |  |  | — |  |  | — |  |  | — |  |  | (38,000) |  |  | 18.98 |
Outstanding at end of year | 1,115,776 |  |  | $ | 23.84 |  |  | 2,224,415 |  |  | $ | 19.94 |  |  | 3,184,157 |  |  | $ | 19.53 |
Exercisable at end of year | 1,115,776 |  |  | $ | 23.84 |  |  | 2,224,415 |  |  | $ | 19.94 |  |  | 3,184,157 |  |  | $ | 19.53 |
The aggregate intrinsic value of options exercised during fiscal 2021, 2020 and 2019 was $82.5 million, $41.2 million and $70.6 million, respectively. The intrinsic value of a stock option is the amount by which the market value of the underlying stock exceeds the option exercise price. The aggregate intrinsic value of options outstanding and exercisable at September 30, 2021 was $67.1 million. Exercise prices for options outstanding at September 30, 2021 ranged from $23.57 to $23.86. The weighted average remaining contractual lives of options outstanding and exercisable at September 30, 2021 is 2.1 years.

X
- References No definition available. + Details
Name: | us-gaap_CompensationRelatedCostsAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition The entire disclosure for compensation costs, including compensated absences accruals, compensated absences liability, deferred compensation arrangements and income statement compensation items. Deferred compensation arrangements may include a description of an arrangement with an individual employee, which is generally an employment contract between the entity and a selected officer or key employee containing a promise by the employer to pay certain amounts at designated future dates, usually including a period after retirement, upon compliance with stipulated requirements. This type of arrangement is distinguished from broader based employee benefit plans as it is usually tailored to the employee. Disclosure also typically includes the amount of related compensation expense recognized during the reporting period, the number of shares (units) issued during the period under such arrangements, and the carrying amount as of the balance sheet date of the related liability. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 710 -URI http://asc.fasb.org/topic&trid=2127225 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 710 -SubTopic 10 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=6409950&loc=d3e20396-108366 + Details
Name: | us-gaap_CompensationRelatedCostsGeneralTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration