XML 66 R36.htm IDEA: XBRL DOCUMENT v3.19.2
Share-Based Compensation (Tables)
 12 Months Ended
Jun. 30, 2019
Share-based Payment Arrangement, Noncash Expense [Abstract]  
Disclosure of Share-based Compensation Arrangements by Share-based Payment Award Total share-based compensation included as a component of selling, general and administrative expenses in our Consolidated Income Statements was as follows:

 
Fiscal Year Ended June 30,
 
2019
 
2018
 
2017
 
(in thousands)
Share-based compensation related to:
 
 
 
 
 
Equity classified stock options
$
868

 
$
1,184

 
$
1,356

Equity classified restricted stock
5,254

 
5,275

 
5,246

Total share-based compensation
$
6,122

 
$
6,459

 
$
6,602
Weighted Average Assumptions for the Options Granted During the Following Fiscal Years
The Company used the following weighted-average assumptions for the options granted during the following fiscal years:

 
Fiscal Year Ended June 30,
 
2019
 
2018
 
2017
Expected term
4 years

 
5 years

 
5 years

Expected volatility
32.93
%
 
30.70
%
 
30.88
%
Risk-free interest rate
2.84
%
 
2.17
%
 
1.84
%
Dividend yield
0.00
%
 
0.00
%
 
0.00
%
Weighted-average fair value per option
$
11.86

 
$
10.60

 
$
11.26
Stock Option Plans
A summary of activity under our stock option plans is presented below:

 
Fiscal Year Ended June 30, 2019
 
Options
 
Weighted-
Average
Exercise
Price
 
Weighted-
Average
Remaining
Contractual
Life
 
Aggregate
Intrinsic
Value
Outstanding, beginning of year
897,120

 
$
37.33

 
 
 
 
Granted during the period
2,110

 
39.35

 
 
 
 
Exercised during the period
(43,975
)
 
33.21

 
 
 
 
Canceled, forfeited, or expired during the period
(4,560
)
 
34.35

 
 
 
 
Outstanding, end of year
850,695

 
37.57

 
5.05
 
$
259,658

Vested and expected to vest at June 30, 2019
850,220

 
37.57

 
5.05
 
$
259,467

Exercisable, end of year
748,263

 
$
37.91

 
4.61
 
$
257,612
Unvested Shares
A summary of the status of the Company’s shares subject to unvested options is presented below:
 
Fiscal Year Ended June 30, 2019
 
Options
 
     Weighted     
Average
Exercise
Price
 
Weighted
Average
Grant
    Date Fair-    
Value
Unvested, beginning of year
211,566

 
$
35.69

 
$
10.54

Granted
2,110

 
39.35

 
11.86

Vested
(106,684
)
 
36.45

 
10.33

Canceled or forfeited
(4,560
)
 
34.35

 
10.62

Unvested, end of year
102,432

 
$
35.03

 
$
10.78
Stock Options Outstanding The following table summarizes information about stock options outstanding and exercisable as of June 30, 2019:

 
 
Options Outstanding
 
Options Exercisable
Range of Exercise Prices
 
Shares
  Outstanding   
 
Weighted
Average
Remaining
  Contractual  
Life
 
    Weighted    
Average
Exercise
Price
 
Number
  Exercisable   
 
    Weighted    
Average
Exercise
Price
$22.27 - $26.38
 
25,000

 
0.43
 
24.57

 
25,000

 
24.57

$26.38 - $30.49
 
19,731

 
3.44
 
29.80

 
19,731

 
29.80

$30.49 - $34.60
 
153,236

 
6.90
 
34.17

 
80,251

 
34.18

$34.60 - $38.71
 
371,169

 
4.67
 
37.04

 
343,832

 
37.04

$38.71 - $42.82
 
281,559

 
5.06
 
41.81

 
279,449

 
41.83

 
 
850,695

 
5.05
 
$
37.57

 
748,263

 
$
37.91
Restricted Stock Outstanding
During the fiscal year ended June 30, 2019, the Company granted 210,359 shares of restricted stock to employees and non-employee directors, all of which were issued in the form of RSUs or PUs:

 
Fiscal Year Ended June 30, 2019
 
Shares
granted
 
Date granted
 
Grant date
fair value
 
Vesting period
Employees
 
 
 
 
 
 
 
Certain employees based on performance
127,506

 
December 3, 2018
 
$
39.35

 
Annually over 3 years
Certain employees based on performance(1)
27,192

 
January 29, 2019
 
$
37.27

 
January 1, 2019 through December 31, 2020
Certain employees based on performance(2)
35,261

 
January 29, 2019
 
$
37.27

 
January 1, 2019 through December 31, 2021
 
 
 
 
 
 
 
 
Non-Employee Directors(3)
 
 
 
 
 
 
 
Certain Directors
20,400

 
December 3, 2018
 
$
39.35

 
6 months

(1) The RSU's granted to non-executive employees on January 29, 2019 contains both service and performance-based vesting conditions for the period January 1, 2019 through December 31, 2020 (the "performance cycle") as determined by the Compensation Committee of the Company's Board of Directors. The total number for target shares granted could differ from the actual shares vested at the conclusion of the respective performance cycle. See the Company's proxy statement for more information about these grants.
(2) The RSU's granted to executive officers on January 29, 2019 contain performance-based vesting conditions for the period January 1, 2019 through December 31, 2020 and service-based vesting conditions for the period January 1, 2019 through December 31, 2021 (collectively the "performance cycle") as determined by the Compensation Committee of the Company's Board of Directors. The total number for target shares granted could differ from the actual shares vested at the conclusion of the respective performance cycle. See the Company's proxy statement for more information about these grants.
(3) Under the 2013 Long-Term Incentive Plan, non-employee directors receive annual awards of restricted stock, as opposed to stock options. The number of shares of restricted stock to be granted is established from time to time by the Board of Directors. Currently, the number of shares of restricted stock awarded annually to each non-employee director generally is determined by dividing $100,000 by the equity award value of the common stock on the date of grant, as defined in the 2013 Long-Term Incentive Plan. The equity award value means the value per share based on a 45-day averaging of the fair market value of the common stock over a specified period of time, or the fair market value of the common stock on a specified date. These awards will generally vest in full on the day that is six months after the date of grant or upon the earlier occurrence of (i) the director’s termination of service as a director by reason of death, disability or retirement or (ii) a change in control by the Company. The compensation expense associated with these awards will be recognized on a pro-rata basis over this period.

A summary of the status of the Company’s outstanding restricted stock is presented below:

 
Fiscal Year Ended June 30, 2019
 
Shares
 
Weighted-Average
Grant Date Fair
Value
Outstanding, beginning of year
253,519

 
$
35.93

Granted during the period
210,359

 
38.73

Vested during the period
(133,196
)
 
37.01

Cancelled, forfeited, or expired during the period
(9,797
)
 
37.23

Outstanding, end of year
320,885

 
$
37.28