XML 35 R20.htm IDEA: XBRL DOCUMENT
v3.22.2.2

Stock-Based Compensation | 12 Months Ended
--- | ---
Sep. 30, 2022
Share-based Payment Arrangement [Abstract] |
Stock-Based Compensation | 14. STOCK-BASED COMPENSATION Stock-based awards were granted under the amended and restated 2021 Omnibus Incentive Plan (the "Amended Plan") beginning January 29, 2022. Prior to that date, such awards made in fiscal 2022 were granted under the 2021 Omnibus Incentive Plan (the "2021 Plan"). Upon stockholder approval of the Amended Plan, we ceased granting awards under the 2021 Plan. Shares subject to awards under the 2021 Plan or any prior plans that are forfeited, canceled, returned to us for failure to satisfy vesting requirements, settled in cash or otherwise terminated without payment also will be available for grant under the Amended Plan. The authority to grant options under the Amended Plan and set other terms and conditions rests with the Compensation Committee of the Board of Directors. The Amended Plan authorizes the issuance of up to 2,400,000 common shares in connection with awards of stock options, stock appreciation rights, restricted stock, restricted stock units, performance-based full value awards or other stock-based awards. Eligible participants include our employees, our affiliates, non-employee directors of our Company and any consultant or advisor who is a natural person and provides services to us or our affiliates. Options that have been granted under the Amended Plan typically vest over a four-year period and will expire if unexercised after seven years from the date of grant. Restricted stock unit awards ("RSUs") that have been granted to directors typically vest in one year. RSUs that have been granted to executives and employees typically vest in January over a four-year period. Performance stock unit awards ("PSUs") that have been granted to an executive will vest based on achievement of a cumulative adjusted earnings per share metric measured over a three-year period. Share-based compensation expenses recorded for this performance award is reevaluated at each reporting period based on the probability of achievement of the goal. The Amended Plan is scheduled to expire on January 28, 2032. Options under the Amended Plan can be granted as either incentive stock options or non-statutory stock options. The exercise price of options and the grant date price of RSUs and PSUs is determined by our Compensation Committee but will not be less than the fair market value of our common stock based on the closing price as of the date of grant. Upon exercise of options or 14. STOCK-BASED COMPENSATION (CONTINUED) settlement of vested restricted stock units or performance stock units, we issue new shares of stock. As of September 30, 2022, there were approximately 1,793,203 shares available for future grants under the Amended Plan. The 2021 Plan, under which grants ceased upon approval of the Amended Plan, authorized the issuance of up to 1,400,000 common shares in connection with awards of stock options, stock appreciation rights, restricted stock, restricted stock units, performance-based full value awards or other stock-based awards. Eligible participants included our employees, our affiliates, non-employee directors of our Company and any consultant or advisor who is a natural person and provided services to us or our affiliates. Options that have been granted under the 2021 Plan typically vested over a four-year period and expired if unexercised after seven years from the date of grant. Restricted stock unit awards ("RSUs") that were granted to directors typically vested in one year. RSUs that were granted to executives and employees typically vested in January over a four-year period. Awards may no longer be granted under the 2021 Plan as grants ceased upon approval of the Amended Plan effective January 29, 2022 at the Annual Meeting of Stockholders. The exercise price of options and the grant date price of restricted stock units was determined by our Compensation Committee but could be less than the fair market value of our common stock based on the closing price on the date of grant. Cash received from the exercise of stock options was $9.5 million, $8.5 million and $5.9 million for the year ended September 30, 2022, 2021 and 2020, respectively. Our stock option plans allow the net exercise of options. Shares with a value of $4.3 million were forfeited to satisfy tax withholding for the year ended September 30, 2022, and no amounts were forfeited in fiscal 2021 or 2020. Our equity plans and corresponding forms of award agreements generally have provisions allowing employees to elect to satisfy tax withholding obligations through the delivery of shares, having us retain a portion of shares issuable under the award or paying cash to us for the withholding. During fiscal 2022, 2021 and 2020 our employees forfeited 102,392, 116,195 and 103,492 shares, respectively in order to satisfy $2.4 million, $2.1 million and $1.8 million, respectively, of withholding tax obligations related to stock-based compensation, pursuant to terms of awards under our board and shareholder-approved compensation plans. We sponsor an Employee Stock Purchase Plan, as amended and restated as of December 10, 2019 (the "Purchase Plan"), covering all domestic employees with at least 90 days of continuous service and who are customarily employed at least 20 hours per week. The Purchase Plan allows eligible participants the right to purchase common stock on a quarterly basis at the lower of 85% of the market price at the beginning or end of each three-month offering period. The most recent amendments to the Purchase Plan, ratified by our stockholders on January 29, 2020, increased the total number of shares to 3,425,000 that may be purchased under the plan. Employee contributions to the Purchase Plan were $1.5 million, $1.2 million and $1.1 million in fiscal 2022, 2021 and 2020, respectively. Pursuant to the Purchase Plan, 80,225, 78,644, and 117,826 shares of common stock were issued to employees during fiscal 2022, 2021 and 2020, respectively. Shares are issued under the Purchase Plan from treasury stock. As of September 30, 2022, 552,848 shares of common stock were available for future issuances under the Purchase Plan. Stock-based compensation expense is included in the consolidated results of operations as (in thousands):
| Year ended September 30,
| 2022 |  | 2021 |  | 2020
Cost of sales | $ | 466 |  |  | $ | 371 |  |  | $ | 291 |
Sales and marketing | 2,503 |  |  | 2,069 |  |  | 2,318 |
Research and development | 1,236 |  |  | 1,032 |  |  | 1,197 |
General and administrative | 4,373 |  |  | 4,663 |  |  | 3,431 |
Stock-based compensation before income taxes | 8,578 |  |  | 8,135 |  |  | 7,237 |
Income tax benefit | (1,819) |  |  | (1,755) |  |  | (1,523) |
Stock-based compensation after income taxes | $ | 6,759 |  |  | $ | 6,380 |  |  | $ | 5,714 |
14. STOCK-BASED COMPENSATION (CONTINUED) Stock Options Below is a summary of our stock options as of September 30, 2022 and changes during the twelve months then ended (in thousands, except per common share amounts):
|  | Options Outstanding |  | Weighted Average Exercise Price |  | Weighted Average Contractual Term (in years) |  | Aggregate Intrinsic Value (1)
Balance at September 30, 2021 |  | 2,952 |  |  | $13.20 |  |  |  |
Granted |  | 575 |  |  | 22.52 |  |  |  |
Exercised |  | (1,532) |  |  | 14.75 |  |  |  |
Forfeited / Canceled |  | (205) |  |  | 17.86 |  |  |  |
Balance on June 30, 2022 |  | 1,790 |  |  | $17.29 |  | 4.7 |  | $ | 29,095 |
Exercisable at June30, 2022 |  | 846,530 |  |  | $14.26 |  | 3.6 |  | $ | 16,325 |
(1) The aggregate intrinsic value represents the total pre-tax intrinsic value, based on our closing stock price of $33.54 as of September 30, 2022, which would have been received by the option holders had all option holders exercised their options as of that date. The intrinsic value of an option is the amount by which the fair value of the underlying stock exceeds its exercise price. The total intrinsic value of all options exercised during each of the twelve months ended September 30, 2022, 2021 and 2020 was $20.3 million, $6.5 million and $3.7 million, respectively. The table below shows the weighted average fair value, which was determined based upon the fair value of each option on the grant date utilizing the Black-Scholes option-pricing model and the related assumptions:
| Year ended September 30,
| 2022 |  | 2021 |  | 2020
Weighted average per option grant date fair value | $ | 10.37 |  |  | $ | 6.97 |  |  | $ | 6.17 |
Assumptions used for option grants: |  |  |  |  |
Risk free interest rate | 1.25% - 3.00% |  | 0.51% - 1.035% |  | 0.37% - 1.73%
Expected term | 6.00 years |  | 6.00 years |  | 6.00 years
Expected volatility | 45% - 46% |  | 44% - 46% |  | 36% - 44%
Weighted average volatility | 46% |  | 45% |  | 36%
Expected dividend yield | 0% |  | 0% |  | 0%
The fair value of each option award granted during the periods presented was estimated using the Black-Scholes option valuation model that uses the assumptions noted in the above table. Expected volatilities are based on the historical volatility of our stock. We use historical data to estimate option exercise and employee termination information within the valuation model. The expected term of options granted is derived from the vesting period and historical information and represents the period of time that options granted are expected to be outstanding. The risk-free rate used is the zero-coupon U.S. Treasury bond rate in effect at the time of the grant whose maturity equals the expected term of the option. As of September 30, 2022, the total unrecognized compensation cost related to non-vested stock-based compensation arrangements was $7.1 million. The related weighted average period over which this cost is expected to be recognized was approximately 1.8 years. 14. STOCK-BASED COMPENSATION (CONTINUED) As of September 30, 2022, the weighted average exercise price and remaining life of the stock options were (in thousands, except remaining life and exercise price):
Options Outstanding |  | Options Exercisable
Range of Exercise Prices |  | Options Outstanding |  | Weighted Average Remaining Contractual Life (In Years) |  | Weighted Average Exercise Price |  | Number of Shares Vested |  | Weighted Average Exercise Price
$7.40 - $11.87 |  | 385 |  |  | 2.94 |  | $ | 11.11 |  |  | 355 |  |  | $ | 11.10 |
$12.48 - $16.75 |  | 386 |  |  | 4.33 |  | $ | 15.19 |  |  | 234 |  |  | $ | 14.79 |
$17.10 - $17.94 |  | 425 |  |  | 4.49 |  | $ | 17.61 |  |  | 235 |  |  | $ | 17.69 |
$18.20 - $21.53 |  | 321 |  |  | 6.17 |  | $ | 20.78 |  |  | 11 |  |  | $ | 19.95 |
$23.46 - $24.18 |  | 227 |  |  | 6.15 |  | $ | 23.60 |  |  | — |  |  | $ | — |
$25.15 - $25.15 |  | 30 |  |  | 5.27 |  | $ | 25.15 |  |  | 12 |  |  | $ | 25.15 |
$33.53 - $33.53 |  | 16 |  |  | 6.85 |  | $ | 33.53 |  |  | — |  |  | $ | — |
$7.40 - $33.53 |  | 1,790 |  |  | 4.67 |  | $ | 17.29 |  |  | 847 |  |  | $ | 14.26 |
The total grant date fair value of shares vested was $3.0 million, $2.6 million and $3.7 million in each of fiscal 2022, 2021 and 2020, respectively. Non-vested Stock Units The following table presents a summary of our non-vested restricted stock units as of September 30, 2022 and changes during the twelve months then ended (in thousands, except per common share amounts):
| RSUs |  | PSUs
| Number of Awards |  | Weighted Average Grant Date Fair Value |  | Number of Awards |  | Weighted Average Grant Date Fair Value
Nonvested at September 30, 2021 | 812 |  |  | $ | 15.72 |  |  | 18 |  |  | $ | 25.15 |
Granted | 394 |  |  | $ | 22.72 |  |  | 12 |  |  | $ | 19.78 |
Vested | (308) |  |  | $ | 15.55 |  |  | (3) |  |  | $ | 25.15 |
Canceled | (156) |  |  | $ | 17.46 |  |  | — |  |  | $ | — |
Nonvested at June 30, 2022 | 742 |  |  | $ | 19.14 |  |  | 27 |  |  | $ | 22.69 |
As of September 30, 2022, the total unrecognized compensation cost related to non-vested restricted stock units was $10.7 million. The related weighted average period over which this cost is expected to be recognized was approximately 2.1 years.

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

X
- Definition The entire disclosure for shareholders' equity and share-based payment arrangement. Includes, but is not limited to, disclosure of policy and terms of share-based payment arrangement, deferred compensation arrangement, and employee stock purchase plan (ESPP). + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 505 -URI http://asc.fasb.org/topic&trid=2208762 Reference 2: 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
Name: | us-gaap_ShareholdersEquityAndShareBasedPaymentsTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration