| Stock-Based Compensation Plans | (6) Stock-Based Compensation Plans.
Participation in FRP Plans The Company's directors, officers
and key employees are eligible to participate in FRP's 2000 Stock Option Plan and the 2006 Stock Option Plan under which options
for shares of common stock were granted to directors, officers and key employees. All related compensation expense has been fully
allocated to the Company (rather than FRP) and included in corporate expenses. Corporate expense also reflects an offsetting credit
for the Transition Services Agreement allocation to FRP. Patriot Incentive Stock Plan In January, 2015 the Board of Directors
of the Company adopted the Patriot Transportation Holding, Inc. Incentive Stock Plan. Grants were issued based upon all outstanding
FRP options held by company directors, officers and key employees on January 30, 2015 with the same remaining terms. The number
of common shares available for future issuance was 34,308 at June 30, 2018. Subsequent to the Spin-off, the realized
tax benefit pertaining to options exercised and the remaining compensation cost of options previously granted prior to the Spin-off
will be recognized by FRP or Patriot based on the employment location of the related employee or director. In December 2016, the Company approved
and issued a long-term performance incentive to an officer in the form of stock appreciation rights. The Company granted 80,000
stock appreciation rights. The market price was $23.13 on the date of grant and the executive will get a cash award at age 65 based
upon the stock price at that date compared to the stock price at the date of grant but in no event will the award be less than
$500,000. The Company plans to expense the fair value of the award over the 9.1 year vesting period to the officer’s attainment
of age 65. The Company recorded the following
stock compensation expense in its consolidated statements of income (in thousands):
Three Months ended Nine months ended
June 30, June 30,
2018 2017 2018 2017
Stock option grants $ 56 52 166 388
Annual director stock award — — 368 368
$ 56 52 534 756 A summary of Company stock options is presented
below (in thousands, except share and per share amounts):
Weighted Weighted Weighted
Number Average Average Average
of Exercise Remaining Grant Date
Options Shares Price Term (yrs) Fair Value
Outstanding at
October 1, 2017 151,591 $ 22.18 6.3 $ 1,271
Granted 33,960 $ 18.57 $ 240
Exercised (5,801 ) 21.44 (53 )
Outstanding at
June 30, 2018 179,750 $ 21.52 6.4 $ 1,458
Exercisable at
June 30, 2018 105,015 $ 22.03 4.9 $ 847
Vested during
nine months ended
June 30, 2018 30,844 $ 231 The aggregate intrinsic value of exercisable
Company options was $98,397 and the aggregate intrinsic value of all outstanding in-the-money options was $181,373 based on the
Company’s market closing price of $21.01 on June 29, 2018 less exercise prices. The realized tax benefit from Patriot option
exercises during the first nine months of fiscal 2018 was $225,000 including $223,000 pertaining to FRP options exercised that
were granted prior to the Spin-off to persons employed by Patriot. The unrecognized compensation expense of Patriot options granted
as of June 30, 2018 was $503,000, which is expected to be recognized over a weighted-average period of 3.4 years. |
