Stock-Based Compensation

3 Months Ended

Dec. 31, 2011

Stock-Based Compensation [Abstract]

Disclosure of Compensation Related Costs, Share-based Payments [Text Block]

Stock-Based Compensation

Stock-based compensation expense is included within 'compensation and benefits' in the condensed consolidated income statements and totaled $1.0 million and $0.5 million for the three months ended December 31, 2011 and 2010, respectively.

Stock Option Plans

The Company sponsors a stock option plan for its directors, officers, employees and consultants. As of December 31, 2011, 786,962 shares were authorized for future grant under this plan. Awards that expire or are canceled generally become available for issuance again under the plan. We settle stock option exercises with newly issued shares of common stock.

Fair value is estimated at the grant date based on a Black-Scholes-Merton option-pricing model using the following weighted-average assumptions:

	Three Months Ended December 31,
	2010
Expected stock price volatility	77	%
Expected dividend yield	—	%
Risk free interest rate	0.72	%
Average expected life (in years)	2.94

Expected stock price volatility rates are based on the historical volatility of the Company’s common stock. The Company has not paid dividends in the past and does not currently expect to do so in the future. Risk free interest rates are based on the U.S. Treasury yield curve in effect at the time of grant for periods corresponding with the expected life of the option or award. The average expected life represents the estimated period of time that options or awards granted are expected to be outstanding, based on the Company’s historical share option exercise experience for similar option grants. The weighted average fair value of options issued during the three months ended December 31, 2010 was $11.66.

The following is a summary of stock option activity for the three months ended December 31, 2011:

	Shares Available for Grant	Number of Options Outstanding		Weighted Average Price		Weighted Average Grant Date Fair Value		Weighted Average Remaining Term (in years)	Aggregate Intrinsic Value ($ millions)
Balances as of September 30, 2011	750,481	1,344,646		$	21.05	$	8.93	3.06	$	9.8
Exercised		(24,063	)	$	12.79	$	8.59
Expired	36,481	(36,481	)	$	27.89	$	11.88
Balances as of December 31, 2011	786,962	1,284,102		$	21.01	$	8.85	2.92	$	12.3
Exercisable as of December 31, 2011		961,084		$	24.98	$	10.40	2.93	$	7.6

The total compensation cost not yet recognized for non-vested awards of $0.9 million as of December 31, 2011 has a weighted-average period of 1.86 years over which the compensation expense is expected to be recognized. The total intrinsic value of options exercised during the three months ended December 31, 2011 and 2010 was $0.3 million, respectively.

At the 2012 annual meeting of shareholders, the Company's shareholders will vote on an amendment to the stock option plan that increases the maximum number of shares that may be issued under the stock option plan from 2,250,000 to 3,250,000 shares. During the three months ended December 31, 2011, 925,000 shares were approved by the Company's board of directors to be awarded at a weighted average price of $25.71 with a weighted average remaining term of 8.61 years that are subject to cancellation, if shareholders do not approve the amendment.

Restricted Stock Plan

The Company sponsors a restricted stock plan for its directors, officers and employees. As of December 31, 2011, 49,351 shares were authorized for future grant under our restricted stock plan. Awards that expire or are canceled generally become available for issuance again under the plan. The Company utilizes newly issued shares of common stock to make restricted stock grants.

The following is a summary of restricted stock activity through December 31, 2011:

	Shares Available for Grant		Number of Shares Outstanding		Weighted Average Grant Date Fair Value		Weighted Average Remaining Term (in years)	Aggregate Intrinsic  Value ($ millions)
Balances as of September 30, 2011	290,963		299,118		$	17.71	1.92	$	6.2
Granted	(241,612	)	241,612		$	24.70
Vested			(74,938	)	$	13.76
Balances as of December 31, 2011	49,351		465,792		$	19.37	2.39	$	11.0

The total compensation cost not yet recognized of $9.1 million as of December 31, 2011 has a weighted-average period of 2.39 years over which the compensation expense is expected to be recognized. Compensation expense is amortized on a straight-line basis over the vesting period. Restricted stock grants are included in the Company’s total issued and outstanding common shares.

The Company's current restricted stock program expired on January 31, 2012. At the 2012 annual meeting of shareholders, the Company's shareholders will vote on a proposal to adopt a new restricted stock program which would authorize the Company to issue up to 1.5 million restricted shares.