Share-based Compensation | 9 Months Ended |
Dec. 31, 2014 |
Share-based Compensation [Abstract] | |
Share-based Compensation | Share-based Compensation |
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We may grant non-qualified stock options, incentive stock options, stock-settled stock appreciation rights, restricted shares, and restricted share units for up to 3.0 million common shares under our 2011 Stock Incentive Plan (the 2011 Plan). The maximum number of shares subject to stock options or SSARs that may be granted to an individual in a calendar year is 800,000 shares, and the maximum number of shares subject to restricted shares or restricted share units that may be granted to an individual in a calendar year is 400,000 shares. The maximum aggregate number of restricted shares or restricted share units that may be granted under the 2011 Plan is 1.0 million. |
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We have a shareholder-approved 2006 Stock Incentive Plan (the 2006 Plan) and a 2000 Stock Incentive Plan that still have vested awards outstanding. Awards are no longer being granted from these incentive plans. |
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We may distribute authorized but unissued shares or treasury shares to satisfy share option and appreciation right exercises or restricted share and performance share awards. |
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We record compensation expense related to stock options, SSARs, restricted shares, and performance shares granted to certain employees and non-employee directors based on the fair value of the awards on the grant date. The fair value of restricted share and performance share awards is based on the closing price of our common shares on the grant date. The fair value of stock option and SSARs awards is estimated on the grant date using the Black-Scholes-Merton option pricing model, which includes assumptions regarding the risk-free interest rate, dividend yield, life of the award, and the volatility of our common shares. |
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The following table summarizes the share-based compensation expense for options, SSARs, restricted and performance awards included in the Condensed Consolidated Statements of Operations: |
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| Three months ended | | Nine months ended |
| December 31, | | December 31, |
(In thousands) | 2014 | | 2013 | | 2014 | | 2013 |
Product development | $ | 259 | | | $ | 194 | | | $ | 669 | | | $ | 550 | |
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Sales and marketing | 42 | | | 38 | | | 74 | | | 88 | |
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General and administrative | 460 | | | 411 | | | 1,085 | | | 886 | |
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Total share-based compensation expense | 761 | | | 643 | | | 1,828 | | | 1,524 | |
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Stock Options |
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The following table summarizes the activity during the nine months ended December 31, 2014 for stock options awarded under the 2006 Plan and the 2000 Stock Incentive Plan: |
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| Number | | Weighted- | | Remaining | | Aggregate | | | |
of | Average | Contractual | Intrinsic | | | |
Options | Exercise | Term | Value | | | |
| Price | | | | | |
(In thousands, except share and per share data) | | | (per share) | | (in years) | | | | | |
Outstanding at April 1, 2014 | 627,500 | | | $ | 15.26 | | | | | | | | |
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Granted | — | | | — | | | | | | | | |
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Exercised | (15,000 | ) | | 13.76 | | | | | | | | |
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Cancelled/expired | (30,000 | ) | | 13.11 | | | | | | | | |
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Outstanding and exercisable at December 31, 2014 | 582,500 | | | $ | 15.41 | | | 1.4 | | $ | — | | | | |
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A total of 8,065 shares, net of 6,935 shares withheld to cover the applicable exercise price of the award, were issued from treasury shares to settle stock options exercised during the first nine months of fiscal 2015. |
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Stock-Settled Stock Appreciation Rights |
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SSARs are rights granted to an employee to receive value equal to the difference in the price of our common shares on the date of the grant and on the date of exercise. This value is settled in common shares of Agilysys. |
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The following table summarizes the activity during the nine months ended December 31, 2014 for SSARs awarded under the 2011 Plan: |
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| Number | | Weighted- | | Remaining | | Aggregate | | | |
of Rights | Average | Contractual | Intrinsic | | | |
| Exercise | Term | Value | | | |
| Price | | | | | |
(In thousands, except share and per share data) | | | (per right) | | (in years) | | | | | |
Outstanding at April 1, 2014 | 320,236 | | | $ | 9.05 | | | | | | | | |
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Granted | 115,020 | | | 14.41 | | | | | | | | |
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Exercised | (16,078 | ) | | 7.75 | | | | | | | | |
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Forfeited | (11,835 | ) | | 7.46 | | | | | | | | |
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Expired | (13,333 | ) | | 7.46 | | | | | | | | |
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Outstanding at December 31, 2014 | 394,010 | | | $ | 10.76 | | | 5.2 | | $ | 929 | | | | |
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Exercisable at December 31, 2014 | 165,745 | | | $ | 8.63 | | | 4.5 | | $ | 657 | | | | |
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As of December 31, 2014, total unrecognized stock based compensation expense related to non-vested SSARs was $0.9 million, which is expected to be recognized over a weighted-average vesting period of 1.74 years. |
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A total of 5,463 shares, net of 1,446 shares withheld to cover the employee’s minimum applicable income taxes, were issued from treasury shares to settle SSARs exercised during the nine months ended December 31, 2014. The shares withheld were returned to treasury shares. |
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Restricted Shares |
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We granted shares to certain of our Directors, executives and key employees under the 2011 Plan, the vesting of which is service-based. The following table summarizes the activity during the nine months ended December 31, 2014 for restricted shares awarded under the 2011 Plan: |
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| Number | | Weighted- | | | | | | | | | |
of Shares | Average | | | | | | | | | |
| Grant- | | | | | | | | | |
| Date Fair | | | | | | | | | |
| Value | | | | | | | | | |
(In thousands, except share and per share data) | | | (per share) | | | | | | | | | |
Outstanding at April 1, 2014 | 139,501 | | | $ | 10.72 | | | | | | | | | | |
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Granted | 357,773 | | | 13.82 | | | | | | | | | |
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Vested | (16,840 | ) | | 8.64 | | | | | | | | | | |
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Forfeited | (18,894 | ) | | 13.25 | | | | | | | | | | |
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Outstanding at December 31, 2014 | 461,540 | | | $ | 13.08 | | | | | | | | | | |
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The weighted-average grant date fair value of the restricted shares is determined based upon the closing price of our common shares on the grant date. As of December 31, 2014, total unrecognized stock based compensation expense related to non-vested restricted stock was $4.3 million, which is expected to be recognized over a weighted-average vesting period of 2.21 years. |
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Performance Shares |
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The following table summarizes the activity during the nine months ended December 31, 2014 for performance shares awarded under the 2011 Plan: |
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| Number | | Weighted- | | | | | | | | | |
of | Average | | | | | | | | | |
Shares | Grant- | | | | | | | | | |
| Date Fair | | | | | | | | | |
| Value | | | | | | | | | |
(In thousands, except share and per share data) | | | (per share) | | | | | | | | | |
Outstanding at April 1, 2014 | 17,728 | | | $ | 8.64 | | | | | | | | | | |
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Granted | — | | | — | | | | | | | | | | |
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Outstanding at December 31, 2014 | 17,728 | | | $ | 8.64 | | | | | | | | | | |
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The weighted-average grant date fair value of the performance shares is determined based upon the closing price of our common shares on the grant date and assumed that performance goals would be met at target. As of December 31, 2014, total unrecognized stock based compensation expense related to non-vested performance shares was $0.1 million, which is expected to be recognized over a weighted-average vesting period of 0.3 years. |