Stock-Based Compensation | 6 Months Ended |
Mar. 31, 2014 |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ' |
Stock-Based Compensation | ' |
Stock-Based Compensation |
The Company may issue stock options and restricted stock 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 six months ended March 31, 2014 and 2013 (in thousands): |
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| Three months ended | | Six months ended |
March 31, | March 31, |
| 2014 | | 2013 | | 2014 | | 2013 |
Restricted stock | $ | 3,683 | | | $ | 2,341 | | | $ | 6,293 | | | $ | 4,672 | |
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Employee stock purchase plan | 112 | | | 117 | | | 225 | | | 244 | |
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| $ | 3,795 | | | $ | 2,458 | | | $ | 6,518 | | | $ | 4,916 | |
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The fair value per share of restricted stock is equal to the quoted price of the Company’s common stock on the date of grant, net of estimated forfeitures. The expense related to these awards is being recorded ratably over the vesting period. 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. |
During the six months ended March 31, 2014, the Company granted 1,409,557 shares of restricted stock to members of senior management of which 601,432 shares vest over the service period. The vesting of the remaining 808,125 shares will vary based on the achievement of certain financial performance goals which will be measured at the end of fiscal year 2014, and a continuing required service period. Total compensation expense on both of these awards is a maximum of $19.2 million, net of cancellations. Changes to the projected attainment against performance targets during fiscal 2014 may result in an adjustment to the amount of cumulative compensation recorded as of the date the estimate is revised. Of the 1,409,557 shares of restricted stock that the Company granted, 8,500 shares were granted to Granville-Phillips employees. |
During the six months ended March 31, 2013, the Company granted 1,224,000 shares of restricted stock to members of senior management of which 546,625 shares vest over a required service period. The vesting of the remaining 677,375 shares depended upon the achievement of certain financial performance goals which were measured at the end of fiscal year 2013, and a continuing required service period. Based on the Company’s results for fiscal 2013 relative to the financial performance goals established in the grant, 460,615 of the 677,375 shares were earned. These awards will vest over the remaining service period. Total compensation expense on the awards granted during the six months ended March 31, 2013 is a maximum of $7.3 million, net of cancellations. However, the final compensation expense related to these awards is dependent on the award holders completing the remaining service period. Of the 1,224,000 shares of restricted stock that the Company granted, 29,380 shares were granted to Granville-Phillips employees. |
Stock Option Activity |
The following table summarizes stock option activity for the six months ended March 31, 2014: |
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| Number of | | Weighted- | | Weighted | | Aggregate | | | |
Options | Average | Average | Intrinsic Value | | | |
| Remaining | Exercise Price | (In Thousands) | | | |
| Contractual Term | | | | | |
Outstanding at September 30, 2013 | 15,540 | | | | | $ | 15.86 | | | | | | |
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Outstanding at March 31, 2014 | 15,540 | | | 0.3 years | | $ | 15.86 | | | $ | — | | | | |
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Vested at March 31, 2014 | 15,540 | | | 0.3 years | | $ | 15.86 | | | $ | — | | | | |
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Options exercisable at March 31, 2014 | 15,540 | | | 0.3 years | | $ | 15.86 | | | $ | — | | | | |
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Based on the Company’s closing stock price of $10.93 as of March 31, 2014, there was no intrinsic value to the option holders. |
No stock options were granted during the three or six months ended March 31, 2014 or 2013. There were no stock option exercises in the three or six months ended March 31, 2014. The total intrinsic value of options exercised during the three and six months ended March 31, 2013 was $19,000. The total cash received from participants as a result of stock option exercises during the three and six months ended March 31, 2013 was $67,000. |
As of March 31, 2014, there was no future compensation cost related to stock options as all outstanding stock options have vested. |
Restricted Stock Activity |
The following table summarizes restricted stock activity for the six months ended March 31, 2014: |
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| Shares | | Weighted | | | | | | | | | |
Average | | | | | | | | | |
Grant-Date | | | | | | | | | |
Fair Value | | | | | | | | | |
Outstanding at September 30, 2013 | 2,915,413 | | | $ | 11.25 | | | | | | | | | | |
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Awards granted | 1,409,557 | | | 9.46 | | | | | | | | | | |
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Awards vested | (522,023 | ) | | 9.37 | | | | | | | | | | |
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Awards canceled | (767,962 | ) | | 10.63 | | | | | | | | | | |
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Outstanding at March 31, 2014 | 3,034,985 | | | $ | 10.9 | | | | | | | | | | |
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The fair value of restricted stock awards vested during the three months ended March 31, 2014 and 2013 was $1.8 million and $3.1 million, respectively. The fair value of restricted stock awards vested during the six months ended March 31, 2014 and 2013 was $4.9 million and $6.0 million, respectively. |
As of March 31, 2014, the unrecognized compensation cost related to restricted stock that is expected to vest is $15.7 million and will be recognized over an estimated weighted average service period of 1.8 years. |
Employee Stock Purchase Plan |
A total of 115,132 shares were purchased under the employee stock purchase plan during the three and six months ended March 31, 2014 for aggregate proceeds of $1.0 million. A total of 115,751 shares were purchased under the employee stock purchase plan during the three and six months ended March 31, 2013 for aggregate proceeds of $1.0 million. |