Stock-Based Compensation

12 Months Ended

Sep. 30, 2011

Stock-Based Compensation [Abstract]

Stock-Based Compensation

11. STOCK-BASED COMPENSATION

The Company has a long-term incentive plan which provides for the granting of incentive awards in the form of stock options, restricted stock, stock appreciation rights (SARs), cash award performance units and performance shares at the discretion of the Executive Compensation Committee of the Board of Directors. The plan authorizes the granting of up to 3,034,568 shares of common stock. As of September 30, 2011, shares available for future grants totaled 558,298.

Stock Options

Stock options granted to date have an exercise price equal to the fair market value of the shares of the Company's common stock at the date of grant. Options became exercisable in annual increments over a three-year period from grant date and expire ten years from date of grant.

For the purpose of estimating the fair value of options on their date of grant, the Company began using a binomial lattice option pricing model in fiscal 2005 and used a Black-Scholes option-pricing model previously. The following assumptions were used in those models:

Expected Stock Price Volatility	3.0-35%
Risk-free Interest Rate	2.5-4.2 %
Expected Life of Options	5.0
Dividend Yield	0-0.7%

A summary of stock option activity in the plan is as follows:

	Options			Weighted- Average Exercise Price		Weighted- Average Remaining Contractual Term		Aggregate Intrinsic Value
				(Per share)		(In years)		(In thousands)
Outstanding at September 30, 2009		87,704		$	4.90
Forfeited		(834	)		6.78
Outstanding at September 30, 2010		86,870		$	4.88
Outstanding at September 30, 2011		86,870		$	4.88		1.9	$	183
Vested at September 30, 2011		86,870		$	4.88		1.9	$	183
Expected to vest in the future		—		$	—		—	$	—

As of September 30, 2011, there was no remaining unrecognized compensation expense related to nonvested stock options.

Restricted Stock and Restricted Stock Units

Restricted stock awards consist of the Company's common stock and generally vest over a three or four-year period from the date of grant. Restricted stock awards are valued at the average market price of the Company's stock at the date of grant, and the Company records the compensation expense over the vesting term. Restricted Stock Units (RSU's) granted in fiscal 2010 and 2011 had no requisite service period and were immediately expensed.

In fiscal 2011, the Company issued 139,440 shares of common stock in a restricted stock grant, 70% of which, or 97,610 shares, are subject to vesting terms that are performance-based. The performance-based portion of the grant cliff vests, to the extent the performance objectives have been achieved, at the end of a 33 month period ending September 30, 2013. The remaining 30% of the shares vest over the same 33 month period. In fiscal 2010, the Company issued 133,446 shares in a restricted stock grant, 70% of which, or 93,412 shares, are subject to vesting terms that are performance-based. The performance-based portion of the grant cliff vests, to the extent the performance objectives have been achieved, at the end of a 34 month period ending September 30, 2012. The remaining 30% of the shares vest over time during the same 34 month period.

The Company recorded compensation expense of $2.2 million, $2.0 million and $2.5 million in fiscal 2011, 2010 and 2009, respectively, related to restricted stock grants.

A summary of restricted stock and restricted stock unit activity in the plan is as follows:

	Restricted Stock					RSU's
	Number of Shares			Weighted- Average Grant Date Fair Value			Number of Units			Weighted- Average Grant Date Fair Value
				(Per share)						(Per unit)
Balance at September 30, 2009		244,177		$	17.53			98,666		$	16.05
Granted		140,446			14.33			22,071			14.43
Vested		(57,032	)		15.79			(27,008	)		19.57
Forfeited		(27,987	)		14.12			(500	)		21.83
Balance at September 30, 2010		299,604			16.68			93,229			14.62
Granted		149,440			13.11			38,441			11.45
Vested		(179,812	)		18.62			—			0.00
Forfeited		(29,822	)		12.49			—			0.00
Balance at September 30, 2011		239,410		$	13.51			131,670		$	13.69

The total fair value of restricted shares vested during fiscal 2011 and 2010 was $1.8 million and $1.1 million. As of September 30, 2011, there was approximately $0.9 million of total unrecognized compensation expense related to nonvested restricted stock which is expected to be recognized over a weighted-average period of 1.7 years.