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Stock Incentives
 12 Months Ended
Jun. 30, 2019
Share-based Compensation, Allocation and Classification in Financial Statements [Abstract]  
Stock Incentives Stock Incentives:
Effective October 20, 2004, a total of 8,000,000 shares of common stock (as adjusted for the fiscal 2005 2-for-1 stock split) was reserved for future issuance pursuant to the Company's Incentive Compensation Plan, and as a result of an amendment approved by shareholders on October 21, 2009 an additional 2,481,494 shares were reserved. On October 15, 2014, the Company's shareholders approved the 2014 Omnibus Incentive Plan, which constituted a complete amendment and restatement of the Company's Incentive Compensation Plan and under which 3,760,000 shares of common stock were reserved for future issuance (plus any shares remaining available for issuance under the Incentive Compensation Plan as of that date). On October 25, 2017 the Company's shareholders approved the 2017 Omnibus Incentive Plan which constituted a complete amendment and restatement of the Company's 2014 Omnibus Incentive Plan and under which 4,700,000 shares of common stock were reserved for future issuance (plus 494,315 shares remaining available for future issuance under the 2014 Omnibus Incentive Plan as of August 22, 2017, along with any other shares under the 2014 Omnibus Incentive Plan that become available for future issuance). Similar to the Incentive Compensation Plan and the 2014 Omnibus Incentive Plan, in accordance with the 2017 Omnibus Incentive Plan, the Company can issue to eligible participants stock options, stock appreciation rights, restricted stock, restricted stock units, performance shares, performance units and other stock-based and cash bonus awards subject to certain annual limitations. The plan also allows participants to defer the payment of awards and the Company to issue directors’ fees in stock. Stock-based compensation vests in accordance with the applicable plan and award agreements but can be accelerated under certain
circumstances by the Compensation Committee in the case of death, disability, retirement or a change in control.
Stock-based compensation expense is calculated by estimating the fair value of incentive stock awards granted and amortizing the estimated value over the awards’ vesting periods. During fiscal 2019, 2018 and 2017, the Company recognized stock-based compensation expense of approximately $7.2 million, $6.7 million and $4.9 million, respectively.
The fair value of each option is estimated using the Black-Scholes option pricing model, and the assumptions are based on historical data and industry valuation practices and methodology. The exercise price of each stock option is equal to the market value of the stock on the grant date. The assumptions used to determine fair value are as follows:
Options Granted During
 
2019
 
2018
 
2017
Grant Date Fair Value
 
$
5.46

 
$
4.64

 
$
3.84

(Since options are only granted once per year, the grant date fair value equals the weighted average grant date fair value.)
 
 
 
 
 
 
Assumptions:
 
 
 
 
 
 
Risk-free Interest Rate
 
2.7
%
 
1.8
%
 
1.2
%
Expected Volatility
 
32.9
%
 
30.7
%
 
29.3
%
Expected Dividend Yield
 
2.7
%
 
2.7
%
 
2.9
%
Expected Term (in Years)
 
5.5

 
5.5

 
5.5


Information on the options outstanding is as follows:
 
 
Options
 
Wtd. Avg. Exercise Price
 
 Wtd. Avg. Remaining Contractual Term (in years)
 
Aggregate Intrinsic Value (in thousands)
Balance, July 3, 2016
 
1,844,543

 
$
19.48

 
 
 
 
Granted During the Year
 
496,880

 
19.15

 
 
 
 
Exercised During the Year
 
(414,176
)
 
18.76

 
 
 
 
Balance, July 2, 2017
 
1,927,247

 
$
19.55

 
 
 
 
Granted During the Year
 
416,210

 
20.47

 
 
 
 
Exercised During the Year
 
(184,530
)
 
20.44

 
 
 
 
Balance, July 1, 2018
 
2,158,927

 
$
19.64

 
 
 
 
Granted During the Year
 
367,870

 
20.96

 
 
 
 
Exercised During the Year
 
(87,398
)
 
20.82

 
 
 
 
Forfeited During the Year
 
(58,390
)
 
18.93

 
 
 
 
Expired During the Year
 
(112,929
)
 
20.82

 
 
 
 
Balance, June 30, 2019
 
2,268,080

 
$
19.78

 
7.03
 
$
—

Exercisable, June 30, 2019
 
1,005,090

 
$
19.36

 
5.73
 
$
—



The total intrinsic value of options exercised during fiscal year 2019 was $0.1 million. The exercise of options resulted in cash receipts of $1.8 million in fiscal 2019. The total intrinsic value of options exercised during fiscal 2018 was $0.5 million. The exercise of options resulted in cash receipts of $3.8 million in fiscal 2018. The total intrinsic value of options exercised during fiscal 2017 was $1.5 million. The exercise of options resulted in cash receipts of $7.8 million in fiscal 2017.
Options Outstanding (as of June 30, 2019)
Fiscal
Year
 
Grant
Date
 
Date
Exercisable
 
Expiration
Date
 
Exercise
Price
 
Options
Outstanding
2015
 
10/21/2014
 
10/21/2017
 
10/21/2024
 
$
18.83

 
543,520

2016
 
8/18/2015
 
8/18/2018
 
8/18/2025
 
$
19.90

 
501,990

2017
 
8/22/2016
 
8/22/2019
 
8/22/2026
 
$
19.15

 
496,880

2018
 
8/21/2017
 
8/21/2020
 
8/21/2027
 
$
20.47

 
416,210

2019
 
8/20/2018
 
8/20/2021
 
2/20/2028
 
$
20.96

 
367,870



Below is a summary of the status of the Company’s nonvested shares as of June 30, 2019, and changes during the year then ended:
 
 
Deferred Stock / RSU
 
Restricted Stock
 
Stock Options
 
Performance Shares
 
 
Shares
 
Wtd. Avg.
Grant Date
Fair Value
 
Shares
 
Wtd. Avg.
Grant Date
Fair Value
 
Shares
 
Wtd. Avg.
Grant Date
Fair Value
 
Shares
 
Wtd. Avg.
Grant Date
Fair Value
Nonvested shares/units,
July 1, 2018
 
78,821

 
$
19.52

 
695,255

 
$
19.87

 
1,415,080

 
$
4.03

 
106,440

 
$
19.90

Granted
 
10,902

 
20.03

 
138,550

 
20.73

 
367,870

 
5.46

 
—

 
—

Cancelled
 
—

 
—

 
(26,940
)
 
20.77

 
(17,970
)
 
3.84

 
—

 
—

Vested
 
(36,442
)
 
19.13

 
(265,255
)
 
19.54

 
(501,990
)
 
3.72

 
(106,440
)
 
19.90

Nonvested shares/units,
June 30, 2019
 
53,281

 
$
19.89

 
541,610

 
$
20.20

 
1,262,990

 
$
4.58

 
—

 
$
—


As of June 30, 2019, there was $5.1 million of total unrecognized compensation cost related to nonvested stock-based compensation. That cost is expected to be recognized over a weighted average period of 1.4 years. The total fair value of shares vested during fiscal 2019 and 2018 was $9.9 million and $7.7 million, respectively.
During fiscal years 2019, 2018 and 2017, the Company issued 138,550, 148,930 and 160,130 shares of restricted stock, respectively. For restricted stock issued prior to October 15, 2014, the restricted stock vests on the fifth anniversary date of the grant provided the recipient is still employed by the Company. For restricted stock issued after October 15, 2014, the restricted stock vests on the third anniversary date of the grant provided the recipient is still employed by the Company. The aggregate market value on the date of issue was approximately $2.9 million, $3.1 million and $3.1 million in fiscal 2019, 2018 and 2017, respectively, and has been recorded within the Shareholders’ Investment section of the Consolidated Balance Sheets, and is being amortized over the five-year vesting period (issuances prior to October 15, 2014) or the three-year vesting period (issuances after October 15, 2014).
The Company issued 55,877, 46,120 and 45,307 deferred shares to its directors in lieu of directors' fees in fiscal 2019, 2018 and 2017, respectively, under this provision of the plans. Prior to January 1, 2017, the Company accounted for certain deferred shares issued to directors as liability classified awards, rather than equity classified awards. At January 1, 2017, the liability balance was $4.8 million. During the third quarter of fiscal 2017, the Company determined that equity classification is appropriate and recorded correcting entries to adjust the deferred shares balance and reclassify it from Accrued Liabilities to Additional Paid-In Capital. The correcting entries did not have a material impact on the Consolidated Financial Statements.
The Company issued 10,902, 13,476 and 15,131 shares of deferred shares / RSU's to its officers and key employees in fiscal 2019, 2018 and 2017, respectively. The aggregate market value on the date of grant was approximately $0.2 million, $0.3 million and $0.3 million, respectively. For deferred stock issued prior to October 15, 2014, the deferred stock vests on the fifth anniversary date of the grant provided the recipient is still employed by the Company. For restricted stock units (RSU) issued after October 15, 2014, the restricted stock units vest on the third anniversary date of the grant provided the recipient is still employed by the Company.
The Company granted no performance share units in 2019, 2018 and 2017.

The following table summarizes the components of the Company’s stock-based compensation programs recorded as expense:
 
 
2019
 
2018
 
2017
Stock Options:
 
 
 
 
 
 
Pretax compensation expense
 
$
2,275

 
$
2,060

 
$
1,862

Tax benefit
 
(553
)
 
(576
)
 
(698
)
Stock option expense, net of tax
 
$
1,722

 
$
1,484

 
$
1,164

Restricted Stock:
 
 
 
 
 
 
Pretax compensation expense
 
$
3,697

 
$
3,302

 
$
3,291

Tax benefit
 
(848
)
 
(924
)
 
(1,234
)
Restricted stock expense, net of tax
 
$
2,849

 
$
2,378

 
$
2,057

Deferred Stock:
 
 
 
 
 
 
Pretax compensation expense
 
$
1,208

 
$
1,046

 
$
585

Tax benefit
 
(338
)
 
(292
)
 
(220
)
Deferred stock expense, net of tax
 
$
870

 
$
754

 
$
365

Performance Shares:
 
 
 
 
 
 
Pretax compensation expense
 
$
—

 
$
267

 
$
(815
)
Tax expense (benefit)
 
—

 
(75
)
 
306

Performance Share expense, net of tax
 
$
—

 
$
192

 
$
(509
)
Total Stock-Based Compensation:
 
 
 
 
 
 
Pretax compensation expense
 
$
7,180

 
$
6,675

 
$
4,923

Tax benefit
 
(1,739
)
 
(1,867
)
 
(1,846
)
Total stock-based compensation, net of tax
 
$
5,441

 
$
4,808

 
$
3,077