XML 22 R11.htm IDEA: XBRL DOCUMENT v3.8.0.1
Stock Based Compensation (Text Block)
 3 Months Ended
Sep. 30, 2017
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]  
Disclosure of Compensation Related Costs, Share-based Payments [Text Block]
STOCK-BASED COMPENSATION
Our operating income for the three months ended September 30, 2017 and 2016 included $1,513 and $1,197 of stock-based compensation costs, respectively.
Stock Options
On November 10, 2015, the Company adopted the 2015 Equity Incentive Plan ("2015 EIP") for its employees and non-employee directors. The plan allows for grants of stock options, stock appreciation rights, restricted stock shares or units, and performance shares or units. The maximum number of shares authorized for issuance under the plan is 3,000. For stock options, terms and vesting periods of the options are determined by the Compensation Committee of the Board of Directors when granted. The option period must expire not more than ten years from the option grant date. The options granted under this plan are exercisable beginning three years after the grant date at an exercise price equal to 100% of the fair market value of the stock at the grant date. The options terminate upon surrender of the option, ninety days after termination of employment, upon the expiration of one year following notification of a deceased optionee, or ten years after grant.
The Company previously issued options to outside directors under the 2005 Non-Qualified Stock Option Plan (“2005 NSOP”). No additional stock options may be issued under this plan.
A summary of option plan activity under these plans is as follows:
 
Number of Shares
 
Weighted Average Exercise Price
 
Aggregate
 Intrinsic
 Value
Outstanding July 1, 2017
72

 
$
50.04

 
 
Granted
—

 
—

 
 
Forfeited
—

 
—

 
 
Exercised
—

 
—

 
 
Outstanding September 30, 2017
72

 
$
50.04

 
$
3,781

Vested and Expected to Vest September 30, 2017
72

 
$
50.04

 
$
3,781

Exercisable September 30, 2017
40

 
$
20.55

 
$
3,290


At September 30, 2017, there was $292 of compensation cost yet to be recognized related to outstanding options. The weighted average remaining contractual term on options currently exercisable as of September 30, 2017 was 1.75 years.
Restricted Stock Awards
The Company issues both share awards and unit awards under the 2015 EIP, and previously issued these through the 2005 Restricted Stock Plan. The following table summarizes non-vested share awards as of September 30, 2017, as well as activity for the three months then ended:
Share awards
Shares
 
Weighted
Average
Grant Date
Fair Value
Outstanding July 1, 2017
36

 
$
73.66

Granted
—

 
—

Vested
(11
)
 
57.60

Forfeited
—

 
64.96

Outstanding September 30, 2017
25

 
$
80.28


At September 30, 2017, there was $828 of compensation expense that has yet to be recognized related to non-vested restricted stock share awards, which will be recognized over a weighted average period of 1.02 years.
The following table summarizes non-vested unit awards as of September 30, 2017, as well as activity for the three months then ended:
Unit awards
Units
 
Weighted
Average
Grant Date
Fair Value
 
Aggregate Intrinsic Value
Outstanding July 1, 2017
386

 
$
67.84

 
 
Granted
83

 
90.11

 
 
Vested
(139
)
 
53.80

 
 
Forfeited
(3
)
 
75.36

 
 
Outstanding September 30, 2017
327

 
$
79.38

 
$
33,659


The Company utilized a Monte Carlo pricing model customized to the specific provisions of the Company’s plan design to value unit awards subject to performance targets on the grant dates. The weighted average assumptions used in this model to estimate fair value at the measurement date and resulting values for 81 unit awards granted in fiscal 2018 are as follows:
Volatility
15.60
%
Risk free interest rate
1.55
%
Dividend yield
1.20
%
Stock Beta
0.687


The remaining 2 unit awards granted are not subject to performance targets, and therefore the estimated fair value at measurement date is valued in the same manner as restricted stock share award grants.
At September 30, 2017, there was $15,290 of compensation expense that has yet to be recognized related to non-vested restricted stock unit awards, which will be recognized over a weighted average period of 1.76 years.