Stock-Based Compensation

12 Months Ended

Sep. 30, 2014

Stock-Based Compensation [Abstract]

Stock-Based Compensation

15Stock-Based Compensation

The Company maintains stock-based compensation awards for key employees and/or non-employee directors under the Landauer, Inc. Incentive Compensation Plan (the “IC Plan”) which was approved by shareholders in February 2008. For future grants, the IC Plan replaced the previous three plans. The Company reserved 500,000 shares of its common stock for grant under the IC Plan, and shares reserved for award and unused under the previous three plans were cancelled. The Plan provide for grants of options to purchase the Company’s common stock, restricted stock, restricted stock units, performance shares and units, and stock appreciation rights. Shares issued upon settlement of stock-based compensation awards are issued from the Company’s authorized, unissued stock.

Stock–based compensation expense, primarily for grants of restricted stock, totaled approximately $2,092,  $2,634 and $2,434 for fiscal 2014, 2013 and 2012, respectively.  The total income tax benefit recognized in the consolidated statements of operations related to expense for stock-based compensation was approximately $774,  $981 and $901 during fiscal 2014, 2013 and 2012, respectively.

Restricted Share Awards

Restricted share awards consist of performance shares and time vested restricted stock. Expense related to performance shares and restricted stock is recognized ratably over the vesting period. Restricted stock issued to eligible employees and directors under the Plans vests, to date, over a period from 1 year to 5 years, and performance shares contingently vest over various periods, depending on the nature of the performance goal. Restricted share transactions during fiscal 2014 were as follows:

	Number of Restricted Share Awards  (in Thousands)		Weighted-Average Fair Value
Outstanding at October 1, 2013	125	$	55.99
Granted	68		47.97
Vested	(65)		54.81
Forfeited	(42)		54.32
Outstanding at September 30, 2014	86	$	51.36

As of September 30, 2014, unrecognized compensation expense related to restricted share awards totaled $2,649 and is expected to be recognized over a weighted average period of1.25 years. The total fair value of shares vested during fiscal 2014, 2013 and 2012 was $3,556, $1,999 and $1,593, respectively.

The per share weighted average fair value of restricted shares, including restricted stock and performance shares, granted during fiscal 2014, 2013 and 2012 was $47.97,  $58.19 and $51.89, respectively.

Stock Options

Expense related to stock options issued to eligible employees and directors under the Plans is recognized ratably over the vesting period. Stock options generally vest over a period of 0 to 4 years and have 10-year contractual terms. A summary of stock option activity during fiscal 2014 is presented below:

	Number of Options  (in Thousands)		Weighted-Average Exercise  Price	Weighted-Average Remaining Contractual Term (Years)		Aggregate Intrinsic Value  (in Thousands)
Outstanding at October 1, 2013	72	$	47.71
Exercised	(5)		41.24
Forfeited	(3)		44.60
Outstanding at September 30, 2014	64	$	48.35	1.0	$	-
Exercisable at September 30, 2014	64	$	48.35	1.0	$	-

As of September 30, 2014, all outstanding stock options were vested and compensation expense related to stock options was recognized. The Company has not granted stock options subsequent to fiscal 2005. The intrinsic value of options exercised totaled $34, $216 and $34 during fiscal 2014, 2013 and 2012, respectively. The total income tax benefit recognized in the consolidated statements of operations related to the exercise of stock options was $13, $99 and $13 during fiscal 2014, 2013 and 2012, respectively.