Note 9: Stock Based Compensation Plan

12 Months Ended

Jun. 30, 2011

Compensation Related Costs, Share Based Payments

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

NOTE 9: STOCK BASED COMPENSATION PLANS

Our pre-tax operating income for the years ended June 30, 2011, 2010 and 2009 includes $4,723, $3,251 and $2,272 of stock-based compensation costs, respectively. Total compensation cost for the years ended June 30, 2011, 2010 and 2009 includes $4,209, $2,347, and $1,620 relating to the restricted stock plan, respectively.

1996 SOP and 2005 NSOP

The Company previously issued options to employees under the 1996 Stock Option Plan (“1996 SOP”) and currently issues options to outside directors under the 2005 Non-Qualified Stock Option Plan (“2005 NSOP”).

The 1996 SOP was adopted by the Company on October 29, 1996, for its employees. Terms and vesting periods of the options were determined by the Compensation Committee of the Board of Directors when granted and for options outstanding include vesting periods up to four years. Shares of common stock were reserved for issuance under this plan at the time of each grant, which must be at or above fair market value of the stock at the grant date. The options terminate 30 days after termination of employment, three months after retirement, one year after death or 10 years after the date of grant. In October 2002, the stockholders approved an increase in the number of stock options available from 13.0 million to 18.0 million shares. The plan terminated by its terms on October 29, 2006, although options previously granted under the 1996 SOP are still outstanding and vested.

The 2005 NSOP was adopted by the Company on September 23, 2005, for its outside directors. Generally, options are exercisable beginning six months after grant at an exercise price equal to 100% of the fair market value of the stock at the grant date. For individuals who have served less than four continuous years, 25% of all options will vest after one year of service, 50% shall vest after two years, and 75% shall vest after three years of service on the Board. The options terminate upon surrender of the option, upon the expiration of one year following notification of a deceased optionee, or 10 years after grant. 700 shares of common stock have been reserved for issuance under this plan with a maximum of 100 for each director. As of June 30, 2011, there were 480 shares available for future grants under the plan.

A summary of option plan activity under the plans is as follows:

	Number of Shares	Weighted Average Exercise Price	Aggregate Intrinsic Value
Outstanding July 1, 2008	3,977	$    17.42
Granted	50	17.45
Forfeited	(19)	20.77
Exercised	(248)	12.28
Outstanding June 30, 2009	3,760	17.75
Granted	50	23.65
Forfeited	(71)	26.64
Exercised	(1,842)	16.70
Outstanding June 30, 2010	1,897	18.58
Granted	-	-
Forfeited	(47)	27.84
Exercised	(860)	21.46
Outstanding June 30, 2011	990	$    15.65	$    14,216
Vested and Expected to Vest June 30, 2011	990	$    15.65	$    14,216
Exercisable June 30, 2011	990	$    15.65	$    14,216

There were no options granted during fiscal 2011. The weighted-average fair value of options granted during fiscal 2010 and fiscal 2009 was $8.90 and $7.87, respectively. The only options granted during fiscal years 2010 and 2009 were to non-employee members of the Company’s board of directors.

The assumptions used in estimating fair value and resulting compensation expenses at the grant dates are as follows:

	Year Ended June 30,
	2010	2009
Weighted Average Assumptions:
Expected life (years)	6.67	3.72
Volatility	33%	30%
Risk free interest rate	3.0%	1.4%
Dividend yield	1.52%	1.72%

The option pricing model assumptions such as expected life, volatility, risk-free interest rate, and dividend yield impact the fair value estimate. These assumptions are subjective and generally require significant analysis and judgment to develop. When estimating fair value, some of the assumptions were based on or determined from external data (for example, the risk-free interest rate) and other assumptions were derived from our historical experience with share-based payment arrangements (e.g., volatility, expected life and dividend yield). The appropriate weight to place on historical experience is a matter of judgment, based on relevant facts and circumstances.

As of June 30, 2011, there was no unrecognized compensation costs related to stock options since all options have now vested. The weighted average remaining contractual term on options currently exercisable as of June 30, 2011 was 2.75 years.

Following is an analysis of stock options outstanding and exercisable as of June 30, 2011:

Range of Exercise Prices	Shares		Weighted-Average Remaining Contractural Life in Years	Weighted-Average Exercise Price
	Outstanding	Exercisable	Outstanding	Outstanding	Exercisable
$10.84 - $11.50	531	531	1.78	$        10.84	$       10.84
$11.51 - $18.55	122	122	4.56	17.43	17.43
$18.56 - $21.53	143	143	2.01	20.05	20.05
$21.54 - $23.40	85	85	2.37	22.37	22.37
$23.41 - $23.65	50	50	8.37	23.65	23.65
$23.66 - $24.97	1	1	0.38	24.97	24.97
$24.98 - $25.00	2	2	0.41	25.00	25.00
$25.01 - $25.65	5	5	0.35	25.65	25.65
$25.66 - $25.72	1	1	0.15	25.72	25.72
$25.73 - $28.52	50	50	6.34	28.52	28.52
$  10.84 - $28.52	990	990	2.75	$        15.65	$       15.65

The income tax benefits from stock option exercises totaled $2,298, $4,666 and $1,233 for the years ended June 30, 2011, 2010 and 2009, respectively.

The total intrinsic value of options exercised was $6,342, $12,694 and $1,999 for the fiscal years ended June 30, 2011, 2010 and 2009, respectively.

Restricted Stock Plan

The Restricted Stock Plan was adopted by the Company on November 1, 2005, for its employees. Up to 3,000 shares of common stock are available for issuance under the plan. Upon issuance, shares of restricted stock are subject to forfeiture and to restrictions which limit the sale or transfer of the shares during the restriction period. The restrictions will be lifted over periods ranging from three to seven years from grant date. On certain awards, the restrictions may be lifted sooner if certain targets for shareholder return are met.

The following table summarizes non-vested share awards as of June 30, 2011, as well as activity for the year then ended:

	Shares	Weighted Average Grant Date Fair Value
Non-vested shares at July 1, 2009	267	$        21.66
Granted	139	22.59
Vested	(19)	22.36
Forfeited	-	-
Non-vested shares at June 30, 2010	387	21.96
Granted	102	24.54
Vested	(59)	23.75
Forfeited	(14)	21.88
Non-vested shares at June 30, 2011	416	$        22.34

The non-vested share awards will not participate in dividends during the restriction period. As a result, the weighted-average fair value of the non-vested share awards is based on the fair market value of the Company’s equity shares on the grant date, less the present value of the expected future dividends to be declared during the restriction period.

At June 30, 2011, there was $3,860 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 1.49 years.

An amendment to the Restricted Stock Plan was adopted by the Company on August 20, 2010, for its executive officers. Unit awards will be made to employees remaining in continuous employment throughout the performance period and vary based on the Company’s percentile ranking in Total Shareholder Return (“TSR”) over the performance period compared to a peer group of companies. TSR is defined as the change in the stock price through the performance period plus dividends per share paid during the performance period, all divided by the stock price at the beginning of the performance period. It is the intention of the Company to settle the unit awards in shares of the Company’s stock.

The following table summarizes non-vested unit awards as of June 30, 2011, as well as activity for the year then ended:

	Units	Weighted Average Grant Date Fair Value
Non-vested shares at July 1, 2010	-	-
Granted	293	15.77
Vested	-	-
Forfeited	-	-
Non-vested shares at June 30, 2011	293	$         15.77

The assumptions used in this model to estimate fair value and resulting values are as follows:

Weighted Average Assumptions at measurement date:
Volatility	37%
Risk free interest rate	0.9%
Dividend yield	1.60%
Stock Beta	0.89

At June 30, 2011, there was $3,389 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 2.20 years.