Share-Based Payments

9 Months Ended

Mar. 31, 2012

Disclosure of Compensation Related Costs, Share-based Payments [Text Block]

Note 9: Share-Based Payments

We recorded share-based compensation expense for the three months ended March 31, 2012 and 2011 of $1,014 and $1,081, respectively, with a related tax benefit of $365 and $389, respectively. We also recorded share-based compensation expense for the nine months ended March 31, 2012 and 2011 of $3,332 and $2,962, respectively, with a related tax benefit of $1,200 and $1,067, respectively.

Stock Options
We use the Black-Scholes option-pricing model to calculate the fair value of stock option awards. The key assumptions for this valuation method include the expected term of the option, stock price volatility, risk-free interest rate, dividend yield and exercise price. Many of these assumptions are judgmental and highly sensitive in the determination of compensation expense. Under the assumptions indicated below, the weighted-average fair value of stock option grants for the three months ended March 31, 2012 and 2011 was $10.50 and $8.37, respectively. Under the assumptions indicated below, the weighted-average fair value of stock option grants for the nine months ended March 31, 2012 and 2011 was $7.21 and $5.68, respectively. During the three months ended March 31, 2012 and 2011, we issued stock options for an aggregate of 6,500 and 50,000 shares of common stock, respectively. During the nine months ended March 31, 2012 and 2011, we issued stock options for an aggregate of 229,562 and 100,000 shares of common stock, respectively.

The table below indicates the key assumptions used in the option valuation calculations for options granted in the periods presented:

	Three Months Ended March 31,		Nine Months Ended March 31,
	2012	2011	2012	2011
Term	6.6 Years	5.1 Years	6.6 Years	4.1-5.1 Years
Volatility	59.5%	57.1%	59.5%	45.7%-57.1%
Dividend yield	0.0%	0.0%	0.0%	0.0%
Risk-free interest rate	1.5%	2.6%	1.5%	1.1-2.6%

Restricted Stock
Our share-based compensation expense also includes the effects of the issuance of restricted stock units. The compensation expense related to restricted stock awards is determined based on the market price of our stock at the date of grant applied to the total number of shares that are anticipated to fully vest, which is then amortized over the expected term. During the three months ended March 31, 2011, an aggregate of 73,500 shares of restricted stock units were issued at a weighted average stock price at date of grant of $12.01. There were no shares of restricted stock issued during the three months ended March 31, 2012. During the nine months ended March 31, 2012 and 2011, an aggregate of 146,412 and 362,500 shares, respectively, of restricted stock units were issued at a weighted average stock price at date of grant of $13.24 and $10.75, respectively. Generally, the restrictions on the restricted stock units granted to employees prior to January 1, 2011 lapse at a rate of 50% after three years and the remaining 50% after the fourth year. Restrictions on restricted stock units granted to employees after January 1, 2011 lapse at a rate of 25% each year.