Share-Based Compensation

9 Months Ended

Jun. 30, 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 nine months of fiscal 2012. Pretax compensation expense related to stock option awards was zero for the three and nine-month periods ended June 30, 2012, respectively, and $0.1 million and $0.3 million for the respective prior year periods.

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

	Shares		Weighted Average Price		Aggregate Intrinsic Value (in millions)		Weighted Average Remaining Contractual Life
Outstanding at October 1, 2011	435,054		$	35.58
Granted	--		$	–
Exercised	(94,636	)	$	14.73	$	1.9
Cancelled / Expired	(206,066	)	$	45.27
Outstanding at June 30, 2012	134,352		$	35.50	$	0.2	1.1 years
Exercisable at June 30, 2012	133,685		$	35.52	$	0.2

Performance-Accelerated Restricted Share Awards

Pretax compensation expense related to the restricted share awards was $1.0 million and $3.0 million for the three and nine-month periods ended June 30, 2012, respectively, and $1.0 million and $3.0 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 486,283 non-vested shares outstanding as of June 30, 2012.

Non-Employee Directors Plan

Pretax compensation expense related to the non-employee director grants was $0.2 million and $0.4 million for the three and nine-month periods ended June 30, 2012, respectively, and $0.2 million and $0.4 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 $1.2 million and $3.4 million for the three and nine-month periods ended June 30, 2012, respectively, and $1.2 million and $3.7 million for the three and nine-month periods ended June 30, 2011, respectively. The total income tax benefit recognized in results of operations for share-based compensation arrangements was $0.5 million and $1.3 million for the three and nine-month periods ended June 30, 2012, respectively, and $0.5 million and $1.4 million for the three and nine-month periods ended June 30, 2011, respectively. As of June 30, 2012, there was $6.9 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 1.6 years.