Stock-Based Compensation

9 Months Ended

Jun. 30, 2011

Stock-Based Compensation [Abstract]

Stock-Based Compensation

2. Stock-Based Compensation

     The following table reflects stock-based compensation expense recorded during the three and nine months ended June 30, 2011 and 2010 (in thousands):

	Three months ended				Nine months ended
	June 30,				June 30,
	2011		2010		2011		2010
Stock options	$	—	$	42	$	—	$	127
Restricted stock		1,476		1,170		4,843		4,439
Employee stock purchase plan		119		116		368		323
	$	1,595	$	1,328	$	5,211	$	4,889

     The Company uses the Black-Scholes valuation model for estimating the fair value of the stock options granted. The fair value per share of restricted stock is equal to the number of shares granted and the excess of the quoted price of the Company’s common stock over the exercise price of the restricted stock on the date of grant. 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. Actual results, and future changes in estimates, may differ substantially from the Company’s current estimates. Restricted stock with market-based vesting criteria is valued using a lattice model.

During the three months ended March 31, 2011, the Company granted 366,000 shares of restricted stock to members of senior management of which 183,000 shares vest over the service period and the remaining 183,000 shares vest upon the achievement of certain financial performance goals which will be measured at the end of fiscal year 2013. Total compensation on these awards is a maximum of $4.5 million. Awards subject to service criteria are being recorded to expense ratably over the vesting period. Awards subject to performance criteria are expensed over the related service period when attainment of the performance condition is considered probable. The total amount of compensation recorded will depend on the Company’s achievement against performance targets. Changes to the projected attainment against performance targets during the vesting period may result in an adjustment to the amount of cumulative compensation recorded as of the date the estimate is revised.

Stock Option Activity

     The following table summarizes stock option activity for the nine months ended June 30, 2011:

				Weighted-
				Average	Weighted		Aggregate
	Number of			Remaining	Average		Intrinsic Value
	Options			Contractual Term	Exercise Price		(In Thousands)
Outstanding at September 30, 2010		764,621			$	18.94
Exercised		(1,554	)			3.62
Forfeited/expired		(386,930	)			23.23
Outstanding at June 30, 2011		376,137		1.2 years	$	14.59	$	78
Vested at June 30, 2011		376,137		1.2 years	$	14.59	$	78
Options exercisable at June 30, 2011		376,137		1.2 years	$	14.59	$	78

     The aggregate intrinsic value in the table above represents the total intrinsic value, based on the Company’s closing stock price of $10.86 as of June 30, 2011, which would have been received by the option holders had all option holders exercised their options as of that date.

     No stock options were granted during the three and nine months ended June 30, 2011 and 2010. The total intrinsic value of options exercised during the three and nine months ended June 30, 2011 was $0 and $15,000, respectively. The total intrinsic value of options exercised during the three and nine months ended June 30, 2010 was $3,000. The total cash received from employees as a result of employee stock option exercises during the three and nine months ended June 30, 2011 was $0 and $6,000, respectively. The total cash received from employees as a result of employee stock option exercises during the three and nine months ended June 30, 2010 was $19,000.

     As of June 30, 2011 there was no future compensation cost related to stock options as all outstanding stock options have vested.

Restricted Stock Activity

     A summary of the status of the Company’s restricted stock as of June 30, 2011 and changes during the nine months ended June 30, 2011 is as follows:

	Nine months ended
	June 30, 2011
				Weighted
				Average
				Grant-Date
	Shares			Fair Value
Outstanding at September 30, 2010		1,313,203		$	9.40
Awards granted		880,000			11.61
Awards vested		(620,920	)		11.74
Awards canceled		(113,126	)		8.56
Outstanding at June 30, 2011		1,459,157		$	10.13

     The fair value of restricted stock awards vested during the three months ended June 30, 2011 and 2010 was $0.9 million. The fair value of restricted stock awards vested during the nine months ended June 30, 2011 and 2010 was $7.3 million and $6.4 million, respectively.

     As of June 30, 2011, the unrecognized compensation cost related to nonvested restricted stock is $11.2 million and will be recognized over an estimated weighted average amortization period of 2.0 years.

Employee Stock Purchase Plan

     There were no shares purchased under the employee stock purchase plan during the three months ended June 30, 2011 and 2010. There were 103,684 shares purchased under the employee stock purchase plan during the nine months ended June 30, 2011 for aggregate proceeds of $0.7 million. There were 116,160 shares purchased under the employee stock purchase plan during the nine months ended June 30, 2010 for aggregate proceeds of $0.6 million.