Share-Based Compensation

6 Months Ended

Mar. 31, 2012

Share-Based Compensation [Abstract]

Share-Based Compensation

4. SHARE-BASED COMPENSATION

The Company provides compensation benefits to certain key employees under several share-based plans providing for employee stock options and/or performance-accelerated restricted shares (restricted shares), and to non-employee directors under a non-employee directors compensation plan.

Stock Option Plans

The fair value of each option award is estimated as of the date of grant using the Black-Scholes option pricing model. Expected volatility is based on historical volatility of the Company's stock calculated over the expected term of the option. The risk-free rate for the expected term of the option is based on the U.S. Treasury yield curve in effect at the date of grant. The expected dividend yield is based on historical dividend rates. There were no stock option grants during the first six months of fiscal 2012. Pretax compensation expense related to stock option awards was zero for the three and six-month periods ended March 31, 2012, respectively, and $0.1 million and $0.2 million for the respective prior year periods.

Information regarding stock options awarded under the option plans is as follows:

							Weighted
						Aggregate	Avg.
				Weighted		Intrinsic	Remaining
				Avg.		Value	Contractual
	Shares			Price		(in millions)	Life
Outstanding at October 1, 2011	435,054		$	35.58
Granted	-		$	-
Exercised	(94,136	)	$	14.66	$	1.9
Cancelled / Expired	(202,616	)	$	45.33
Outstanding at March 31, 2012	138,302		$	35.63	$	0.3	1.3 years
Exercisable at March 31, 2012	137,635		$	35.65	$	0.3

Performance-Accelerated Restricted Share Awards

Pretax compensation expense related to the restricted share awards was $1.0 million and $2.0 million for the three and six-month periods ended March 31, 2012, respectively, and $1.0 million and $2.0 million for the respective prior year periods. There have been no changes in the amount of non-vested shares since September 30, 2011. There were 486,908 non-vested shares outstanding as of March 31, 2012.

Non-Employee Directors Plan

Pretax compensation expense related to the non-employee director grants was $0.1 million and $0.2 million for the three and six-month periods ended March 31, 2012, respectively, and $0.2 million and $0.3 million for the respective prior year periods.

The total share-based compensation cost that has been recognized in results of operations and included within selling, general and administrative expenses (SG&A) was $1.1 million and $2.3 million for the three and six-month periods ended March 31, 2012, respectively, and $1.3 million and $2.5 million for the three and six-month periods ended March 31, 2011, respectively. The total income tax benefit recognized in results of operations for share-based compensation arrangements was $0.4 million and $0.9 million for the three and six-month periods ended March 31, 2012, respectively, and $0.5 million and $1.0 million for the three and six-month periods ended March 31, 2011, respectively. As of March 31, 2012, there was $7.8 million of total unrecognized compensation cost related to share-based compensation arrangements. That cost is expected to be recognized over a remaining weighted-average period of 1.9 years.