Stock-Based Compensation

The Company has awarded performance and restricted shares under its shareholder-approved amended and restated its 2007 Long-Term Incentive Plan (“2007 Plan”), which was further amended and restated under the 2016 Long-Term Incentive Plan ("2016 Plan"). The aggregate number of shares that may be awarded by the Company was increased by 646 shares, less any shares previously awarded and subject to an adjustment for the forfeiture of any unvested shares, pursuant to the 2016 Plan. In addition, shares that may be awarded are subject to individual recipient award limitations. The shares awarded under the 2016 Plan may be made in multiple forms including stock options, stock appreciation rights, restricted or unrestricted stock, and performance related shares. Any such awards are exercisable no later than ten years from the date of grant.

The performance shares that have been awarded under both plans generally provide for the vesting of the Company’s common shares upon the Company achieving certain defined financial performance objectives during a period up to three years following the granting of such award. The ultimate number of common shares of the Company that may be earned pursuant to an award ranges from a minimum of no shares to a maximum of 200% of the initial target number of performance shares awarded, depending on the level of the Company’s achievement of its financial performance objectives.

With respect to such performance shares, compensation expense is being accrued based on the probability of meeting the performance target. During each future reporting period, such expense is evaluated and may be subject to adjustment based upon the Company’s financial performance, which impacts the number of common shares that it expects to issue upon the completion of the performance period. The performance shares were valued at the closing market price of the Company’s common shares on the date of grant. The vesting of such shares is determined at the end of the performance period.

The Company has awarded restricted shares to certain of its directors, officers and other employees of the Company. The restricted shares were valued at the closing market price of the Company’s common shares on the date of grant, and such value was recorded as unearned compensation. The unearned compensation is being amortized ratably over the restricted stock vesting period of one (1) year or three (3) years.

If all outstanding share awards are ultimately earned and issued at the target number of shares, then at September 30, 2018 there are approximately 302 shares that remain available for award. If any of the outstanding share awards are ultimately earned and issued at greater than the target number of shares, up to a maximum of 200% of such target, then a fewer number of shares would be available for award.

Stock-based compensation under the 2016 Plan was expense of $608 and $404 for fiscal 2018 and 2017, respectively. The Company did not record income tax benefits in Additional Paid-in Capital related to shares that were earned under the 2016 Plan in fiscal 2017, prior to the adoption of ASU 2016-09. As of September 30, 2018, there was $745 of total unrecognized compensation cost related to the performance and restricted shares awarded under the 2016 Plan. The Company expects to recognize this cost over the next 1.3 years.

The following is a summary of activity related to performance and restricted shares:



	2018				2017
	Number of Shares		Weighted Average Fair Value at Date of Grant		Number of Shares		Weighted Average Fair Value at Date of Grant
Outstanding at beginning of year	194		$	8.57	146		$	13.07
Restricted shares awarded	98		6.63		71		7.73
Restricted shares earned	(33	)	8.05		(29	)	9.45
Performance shares awarded	68		6.70		69		7.45
Performance shares earned	—		—		(10	)	9.50
Awards forfeited	(56	)	9.85		(53	)	17.75
Outstanding at end of year	271		$	7.20	194		$	8.57