Stock Option Plans and Equity Incentive Plan

12 Months Ended

May 31, 2012

Stock Option Plans and Equity Incentive Plan [Abstract]

Stock Option Plans and Equity Incentive Plan

Note 12: Stock Option Plans and Equity Incentive Plan

Our 2005 Equity Incentive Plan (the “Equity Incentive Plan”) authorizes our Board of Directors to grant incentive and non-statutory stock option grants, stock appreciation rights, restricted stock awards, restricted stock units, performance unit awards and performance share awards covering a maximum of 1,000 shares of our common stock. The Equity Incentive Plan replaced our prior stock option plans, under which there are no outstanding options. Pursuant to the Equity Incentive Plan, we have granted incentive and non-statutory options to directors, officers and key employees at prices not less than 100% of the fair market value on the day of grant. In addition, we have granted restricted stock and restricted stock units to directors, officers and key employees. The Equity Incentive Plan provides for a variety of vesting dates. All outstanding options expired in October 2011.

Stock Options

The following table summarizes certain information relative to options for common stock:

	Shares			Weighted Average Exercise Price		Weighted Average Remaining Contractual Term (in years)		Aggregate Intrinsic Value
Outstanding at June 1, 2011		36		$	17.69
Granted		—			—
Exercised		—			—
Forfeited/cancelled		(36	)		17.69
Outstanding at May 31, 2012, all vested and exercisable		—		$	—		—	$	—

There were no stock options granted during fiscal 2012, 2011 or 2010. The total fair value of shares vested during fiscal 2012, 2011 and 2010 was $0, $0 and $54, respectively. The aggregate intrinsic value is calculated as the difference between the exercise price of the underlying awards and the quoted price of our common stock. The aggregate intrinsic value of options exercised during fiscal 2012, 2011 and 2010 was $0, $13 and $180, respectively. Shares of newly issued common stock were issued upon exercise of stock options.

Restricted Stock Units

Restricted stock units represent the right to receive one share of our common stock provided that the vesting conditions are satisfied. The following table represents restricted stock unit activity for fiscal 2012:

	Restricted Stock Units			Weighted Average Grant Date Fair Value
Nonvested at June 1, 2011		204		$	11.36
Granted		101			16.47
Vested		(91	)		11.39
Forfeited/canceled		(11	)		12.88
Nonvested at May 31, 2012		203		$	13.82

We granted 101, 107 and 166 restricted stock units during fiscal 2012, 2011 and 2010, respectively. As of May 31, 2012, we have unrecognized share-based compensation cost of approximately $1,551 associated with restricted stock units. This cost is expected to be recognized over a weighted-average period of approximately 1.7 years.

The total fair value of shares that vested during fiscal 2012 was $1,030, which was calculated based on the closing price of our common stock on the Nasdaq Stock Market on the applicable date of vesting.

Accounting for Share Based Payments

Accounting guidance requires all share-based payments to employees, including grants of employee stock options, restricted stock and restricted stock units, to be recognized as compensation expense in the consolidated financial statements based on their fair values. Compensation expense is recognized over the period that an employee provides service in exchange for the award.

We use the Black-Scholes option pricing model to calculate the fair value of any option grant. Our computation of expected volatility is based on historical volatility. Our computation of expected term is determined based on historical experience of similar awards, giving consideration to the contractual terms of the stock-based awards, vesting schedules and expectations of future employee behavior. The expected term represents the period that our option awards are expected to be outstanding and was determined based on historical experience of similar awards. The risk-free interest rate is based on U.S. Treasury zero-coupon issues with a term equal to the expected term of the option at the date of grant. Forfeitures are estimated at the date of grant based on historical experience. We use the market price of our common stock on the date of grant to calculate the fair value of each grant of restricted stock and restricted stock units.

We recorded $1,438, $956 and $610 of stock-based compensation as part of selling, general and administrative expenses for fiscal 2012, 2011 and 2010, respectively.

We receive a tax deduction for certain stock option exercises during the period the options are exercised, generally for the excess of the fair value of our common stock at the date of exercise over the exercise price of the options, and dividends paid on vested restricted stock units. Excess tax benefits are realized tax benefits from tax deductions for exercised options in excess of the deferred tax asset attributable to stock compensation costs for such options. The total tax benefit realized from stock option exercises, shares issued and dividend payments for vested restricted stock units for fiscal 2012, 2011 and 2010 was $102, $37 and $62, respectively. Cash received from stock option exercises was $0, $197 and $454 for fiscal 2012, 2011 and 2010, respectively.