Stock-Based Compensation

3 Months Ended

Oct. 31, 2017

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

Disclosure of Compensation Related Costs, Share-based Payments

STOCK-BASED COMPENSATION

The Oil-Dri Corporation of America 2006 Long Term Incentive Plan (the “2006 Plan”) permits the grant of stock options, stock appreciation rights, restricted stock, restricted stock units, performance awards and other stock-based and cash-based awards. Our employees and outside directors are eligible to receive grants under the 2006 Plan. The total number of shares of stock subject to grants under the 2006 Plan may not exceed 937,500.

Stock Options

There were no stock options outstanding at the end of fiscal year 2017 and no stock options were granted during the first three months of fiscal year 2018. No stock options were granted and no stock options were exercised during the first three months of fiscal year 2017.

Restricted Stock

All of our non-vested restricted stock as of October 31, 2017 was issued under the 2006 Plan with vesting periods between two years and five years. We determine the fair value of restricted stock as of the grant date. We recognize the related compensation expense over the period from the date of grant to the date the shares vest.

During the first quarter of fiscal year 2018, we granted 23,000 restricted shares of Common Stock and 1,000 restricted shares of Class B Stock. During the first quarter of fiscal year 2017, we granted 13,000 restricted shares of Common Stock. Stock-based compensation expense related to non-vested restricted stock for the first quarter of fiscal years 2018 and 2017 was $502,000 and $431,000, respectively.

A summary of restricted stock transactions is shown below:

	Restricted Shares (in thousands)		Weighted Average Grant Date Fair Value
Non-vested restricted stock outstanding at July 31, 2017	185		$	30.96
Granted	24		$	42.76
Vested	(27	)	$	29.94
Forfeitures	(1	)	$	33.77
Non-vested restricted stock outstanding at October 31, 2017	181		$	32.66