The Company has several stock plans that are described in the Company’s Annual Report on Form 10‑K for the fiscal year ended October 31, 2025. The compensation expense and related income tax benefit recognized in our Consolidated Condensed Statements of Income and Comprehensive Income for share-based awards, including the employee stock purchase plan, were as follows:


Periods Ended January 31,	Three Months
(In millions)	2026		2025
Selling, general and administrative expense	$	17.1	$	16.7
Cost of sales	1.5		1.3
Research and development expense	0.6		0.8
Total share-based compensation expense	$	19.2	$	18.8
Related income tax benefit	$	2.5	$	2.9

During the three months ended January 31, 2026, the Company granted 78,286 restricted stock units to selected key employees which vest over approximately three years and are earned based on the Company's total shareholder return (TSR) relative to a designated peer group over a three-year performance period. The TSR metric is considered a market condition. The Company measured the fair value of such awards on the grant date using Monte Carlo simulation, incorporating valuation inputs including (a) simulation term of 2.9 years (b) risk-free interest rate of 3.6% (c) historical volatility of 29.2% (d) dividend yield of 0%. The grant-date fair value of the TSR award was $116.05 per share. The performance shares ultimately earned will range from zero to 200% of the target number of shares.

We recognize compensation expense ratably over the requisite service period regardless of actual TSR achievement. As of January 31, 2026, there was $8.7 million of total unrecognized compensation cost related to unvested TSR award, which is expected to be recognized over a remaining weighted-average period of 3.0 years.