Stock-Based Compensation

The Company may issue restricted stock units and restricted stock awards (collectively "restricted stock units") and stock options which vest upon the satisfaction of a performance condition and/or a service condition. In addition, the Company issues shares to participating employees pursuant to an employee stock purchase plan.

The following table reflects stock-based compensation expense, excluding amounts related to discontinued operations, recorded during the three and nine months ended June 30, 2015 and 2014 (in thousands):



	Three Months Ended June 30,				Nine Months Ended June 30,
	2015		2014		2015		2014
Restricted stock units	$	2,289	$	2,149	$	9,173	$	8,442
Employee stock purchase plan	113		109		337		334
Total stock-based compensation	$	2,402	$	2,258	$	9,510	$	8,776

The fair value per share of a restricted stock unit is equal to the quoted price of the Company’s common stock on the date of grant. The expense related to these awards is being recorded ratably over the vesting period, net of estimated forfeitures. In addition, for stock-based awards where vesting is dependent upon achieving certain operating performance goals, the Company estimates the likelihood of achieving the performance goals against previously established performance targets in accordance with the Company's long-term equity incentive plan.

The Company grants restricted stock units that vest over a required service period and awards for which vesting is dependent upon achieving certain operating performance goals. Restricted stock units granted with performance goals also have a required service period. The following table reflects restricted stock units granted, including 8,500 of time-based awards related to the discontinued operation, during the nine months ended June 30, 2015 and 2014:



	Total Units	Time-Based Units	Stock Grants	Performance-Based Units
Nine months ended June 30, 2015	1,484,781	568,750	69,281	846,750
Nine months ended June 30, 2014	1,517,057	600,750	77,557	838,750

Time-Based Grants

Units granted with a required service period typically have three year vesting schedules in which, subject to the award holder meeting service requirements, one-third vest at the first anniversary of the date of grant, one-third vest at the second anniversary of the date of grant and one-third vest at the third anniversary of the date of grant.

Stock Grants

The Company granted 69,281 shares and 77,557 shares during the nine months ended June 30, 2015 and 2014, respectively, to the Company’s Board of Directors, which vested immediately.

Performance-Based Grants

Performance-based units are earned based on the achievement of performance criteria established by the Company’s Human Resources and Compensation Committee and the Board of Directors. The criteria for performance-based awards are weighted and have threshold, target and maximum performance goals.

Performance-based awards granted in fiscal year 2014 included provisions that allowed participants to earn 100% of the targeted number of performance-based awards if the Company’s performance met targets and up to a maximum of 200% of the performance-based awards if the Company’s performance significantly exceeded the target. Performance below the minimum threshold resulted in award forfeiture. The measurement of achievement against the performance goals for performance-based units granted in fiscal year 2014 occurred at the end of fiscal year 2014 to determine the number of earned units eligible for subsequent vesting, in which one-half of the earned units vest at the second anniversary of the date of grant and one-half of the earned units vest at the third anniversary of the date of grant, subject to the award holder meeting service requirements.

The Company significantly exceeded the fiscal year 2014 financial goals associated with the performance-based awards which were granted in the first quarter of fiscal year 2014. Under the terms of the awards, a total of 1,297,546 units could vest, subject to award holders satisfying the service requirement, which is an increase of 458,796 units over the target grant. Units granted to the employees of the Granville-Phillips business were forfeited upon completion of the sale.

Performance-based awards granted in fiscal year 2015 include provisions similar to fiscal 2014 awards that allow participants to earn threshold, target and maximum awards ranging from 0% of the award for performance below the minimum threshold, 100% of the award for performance at target and up to a maximum of 200% of the award if the Company’s performance significantly exceeds the target goals.

Sixty percent of the performance-based units granted in fiscal year 2015 have certain performance goals that will be measured at the end of fiscal year 2015 to determine the number of earned units, of which one-half will vest at the second anniversary of the date of grant and one-half will vest at the third anniversary of the date of grant, subject to the award holder meeting service requirements. Forty percent of the performance-based units granted in fiscal year 2015 have certain performance goals to be measured over a three year period at the end of fiscal year 2017 with any earned units vesting at the third anniversary of the date of the grant, subject to award holders satisfying the service requirements.

Stock Option Activity

The following table summarizes stock option activity for the nine months ended June 30, 2015:



	Number of Options		Weighted- Average Remaining Contractual Term	Weighted Average Exercise Price		Aggregate Intrinsic Value (In Thousands)
Outstanding at September 30, 2014	5,550			$	13.20
Forfeited/expired	(5,550	)		13.20
Outstanding at June 30, 2015	—		0.0 years	$	—	$	—
Vested at June 30, 2015	—		0.0 years	$	—	$	—
Options exercisable at June 30, 2015	—		0.0 years	$	—	$	—

No stock options were granted during the three and nine months ended June 30, 2015 or 2014. There were no stock option exercises during the three and nine months ended June 30, 2015 or 2014.

As of June 30, 2015, there was no future compensation cost related to stock options as there were no stock options outstanding.

Restricted Stock Unit Activity

The following table summarizes restricted stock unit activity for the nine months ended June 30, 2015:



	Restricted Stock Units		Weighted Average Grant-Date Fair Value
Outstanding at September 30, 2014	2,726,485		$	11.05
Restricted stock units granted	1,484,781		11.93
Restricted stock units vested	(672,453	)	11.91
Restricted stock units canceled	(266,736	)	10.60
Outstanding at June 30, 2015	3,272,077		$	11.91

The fair value of restricted stock units which vested during each of the three month periods ended June 30, 2015 and 2014 was $0.2 million. The fair value of restricted stock units which vested during the nine months ended June 30, 2015 and 2014 was $8.0 million and $5.1 million, respectively.

As of June 30, 2015, the unrecognized compensation cost related to restricted stock units that are expected to vest is $14.2 million and will be recognized over an estimated weighted average service period of 1.6 years.

Employee Stock Purchase Plan

There were no shares purchased under the employee stock purchase plan during the three months ended June 30, 2015 and 2014. A total of 96,415 shares were purchased under the employee stock purchase plan during the nine months ended June 30, 2015 for aggregate proceeds of $0.9 million. A total of 115,132 shares were purchased under the employee stock purchase plan during nine months ended June 30, 2014 for aggregate proceeds of $1.0 million.