Hillenbrand, Inc. Quarterly report pursuant to Section 13 or 15(d)

Quarterly report pursuant to Section 13 or 15(d)

Share-Based Compensation

Share-Based Compensation

6 Months Ended

Mar. 31, 2018



	Three Months Ended March 31,				Six Months Ended March 31,
	2018		2017		2018		2017
Share-based compensation costs	$	3.9	$	3.1	$	6.2	$	5.7
Less impact of income tax benefit	1.0		1.0		1.6		2.0
Share-based compensation costs, net of tax	$	2.9	$	2.1	$	4.6	$	3.7

We have share-based compensation with long-term performance-based metrics that are contingent upon our relative total shareholder return and the creation of shareholder value. Relative total shareholder return is determined by comparing our total shareholder return during a three-year period to the respective total shareholder returns of companies in a designated performance peer group. Creation of shareholder value is measured by the cumulative cash returns and final period net operating profit after tax compared to the established hurdle rate over a three-year period. For the performance-based awards contingent upon the creation of shareholder value, compensation expense is adjusted each quarter based upon actual results to date and any changes to forecasted information on each of the separate grants.

During the six months ended March 31, 2018, we made the following grants:



	Number of Units
Stock options	352,752
Time-based stock awards	18,539
Performance-based stock awards (maximum that can be earned)	230,890

Stock options granted during fiscal 2018 had a weighted-average exercise price of $45.78 and a weighted-average grant date fair value of $11.10. Our time-based stock awards and performance-based stock awards granted during fiscal 2018 had weighted-average grant date fair values of $45.19 and $53.37. Included in the performance-based stock awards granted during 2018 are 111,126 units whose payout level is based upon the Company’s relative total shareholder return over the three-year measurement period, as described above. These units will be expensed on a straight-line basis over the measurement period and are not subsequently adjusted after the grant date.