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Share-Based Compensation | 12 Months Ended
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Jun. 30, 2024
Share-Based Payment Arrangement [Abstract] |
Share-Based Compensation | Share-Based Compensation The Company has two share-based compensation plans: the Amended and Restated Stock-Based Incentive Compensation Plan for Officers and Key Employees (the "Omnibus Plan") and the Stock-Based Compensation Plan for Non-Employee Directors ("Director's Plan"). The Company recognizes compensation cost based on the fair value of the awards on the date of grant. The compensation cost is recognized over the requisite service period of the award, which is generally the shorter of the vesting period that the holder is required to provide service, or the period from the grant date to the date on which the employee is eligible to retire or the Director has a separation from service event. Upon the employee's retirement, as defined in the Omnibus Plan, or the Director's separation from service, as defined in the Director's Plan, outstanding awards are subject to certain accelerated vesting terms. Awards granted under the share-based compensation plans are paid from shares held in treasury and newly issued shares. The total compensation cost that has been charged against income related to these share-based compensation plans was $19.8 million, $16.4 million and $10.8 million for the fiscal years ended June 30, 2024, 2023 and 2022, respectively. Omnibus Plan The Omnibus Plan provides that the Board of Directors or a designated committee may grant stock options, restricted stock and restricted stock units, and determine the terms and conditions of each grant. The Omnibus Plan provides the Chief Executive Officer with limited authority to grant awards. As of June 30, 2024, 3,419,252 shares were available for awards which may be granted under this plan. Director's Plan The Director's Plan provides for the granting of stock options and stock units to non-employee directors. As of June 30, 2024, 171,911 shares were available for awards which may be granted under this plan. Stock Options (all plans) Stock options granted under the plans above are granted with an exercise price equal to at least the fair market value of the Company's common stock on the date of grant. The options are typically exercisable after one to three years of service and expire no longer than ten years from the grant date. The fair value of stock options awarded in fiscal years 2024, 2023 and 2022 was estimated on the date of each grant using a Black-Scholes option pricing model with the following weighted-average assumptions:
|  | Years Ended June 30,
|  | 2024 |  | 2023 |  | 2022
Expected volatility |  | 55.4 | % |  | 54.0 | % |  | 51.6 | %
Dividend yield |  | 1.1 | % |  | 2.2 | % |  | 2.4 | %
Risk-free interest rate |  | 4.6 | % |  | 4.0 | % |  | 1.1 | %
Expected term (in years) |  | 5.0 |  | 5.0 |  | 5.0
The assumptions are based on multiple factors, including historical exercise patterns of employees in relatively homogeneous groups with respect to exercise and post-vesting employment termination behaviors, expected future exercising patterns for these same homogeneous groups and the implied volatility of our stock price based on historical performance for the same expected term of the options granted. The risk-free interest rate is based on the U.S. Treasury yield curve in effect at the time of each grant.
|  | Number of Awards |  | Weighted Average Exercise Price |  | Weighted Average Remaining Contractual Term |  | Aggregate Intrinsic Value ($ in millions)
Outstanding at June 30, 2021 |  | 2,075,753 |  |  | $ | 43.47 |  |  |  |  |
Granted |  | 36,444 |  |  | $ | 34.43 |  |  |  |  |
Exercised |  | (891) |  |  | $ | 39.70 |  |  |  |  |
Forfeited |  | (69,656) |  |  | $ | 40.52 |  |  |  |  |
Expired |  | (79,061) |  |  | $ | 54.49 |  |  |  |  |
Outstanding at June 30, 2022 |  | 1,962,589 |  |  | $ | 42.96 |  |  |  |  |
Granted |  | 27,956 |  |  | $ | 36.24 |  |  |  |  |
Exercised |  | (117,621) |  |  | $ | 42.39 |  |  |  |  |
Withheld |  | (1,136) |  |  | $ | 44.90 |  |  |  |  |
Forfeited |  | (2,097) |  |  | $ | 42.16 |  |  |  |  |
Expired |  | (61,517) |  |  | $ | 49.67 |  |  |  |  |
Outstanding at June 30, 2023 |  | 1,808,174 |  |  | $ | 42.67 |  |  |  |  |
Granted |  | 11,014 |  |  | $ | 70.64 |  |  |  |  |
Exercised |  | (835,532) |  |  | $ | 45.06 |  |  |  |  |
Withheld |  | (369,042) |  |  | $ | 39.81 |  |  |  |  |
Forfeited |  | (1,028) |  |  | $ | 70.64 |  |  |  |  |
Outstanding at June 30, 2024 |  | 613,586 |  |  | $ | 41.61 |  |  | 3.6 years |  | $ | 41.7 |
Exercisable at June 30, 2024 |  | 603,600 |  |  | $ | 41.13 |  |  | 3.5 years |  | $ | 41.3 |
Outstanding and Exercisable Options
Exercise Price Range |  | Number Outstanding at June 30, 2024 |  | Weighted Average Remaining Contractual Term (in Years) |  | Weighted Average Exercise Price |  | Number Exercisable at June 30, 2024 |  | Weighted Average Exercise Price
$18.26 - $20.00 |  | 50,142 |  |  | 6.3 |  | $ | 18.26 |  |  | 50,142 |  |  | $ | 18.26 |
$20.01 - $30.00 |  | — |  |  | 0.0 |  | $ | — |  |  | — |  |  | $ | — |
$30.01 - $40.00 |  | 160,379 |  |  | 3.6 |  | $ | 37.13 |  |  | 160,379 |  |  | $ | 37.13 |
$40.01 - $50.00 |  | 311,969 |  |  | 3.0 |  | $ | 42.58 |  |  | 311,969 |  |  | $ | 42.58 |
$50.01 - $60.00 |  | 81,110 |  |  | 3.1 |  | $ | 57.59 |  |  | 81,110 |  |  | $ | 57.59 |
$60.01 - $70.64 |  | 9,986 |  |  | 9.3 |  | $ | 70.64 |  |  | — |  |  | $ | — |
|  | 613,586 |  |  |  |  | $ | 41.61 |  |  | 603,600 |  |  | $ | 41.13 |
The weighted average grant date fair value of options awarded during fiscal years 2024, 2023 and 2022 was $34.06, $15.55 and $12.39, respectively. Share-based compensation charged against income related to stock options for the fiscal years ended June 30, 2024, 2023 and 2022 was $0.4 million, $0.5 million and $0.6 million, respectively. As of June 30, 2024, $0.1 million of compensation cost related to nonvested stock options will be recognized over a weighted average remaining life of 0.3 years. Of the options outstanding at June 30, 2024, 384,642 relate to the Omnibus Plan and 228,944 relate to the Directors' Plan. Restricted Stock Unit Awards (Omnibus Plan) Restricted stock unit awards are granted to employees with performance and/or service conditions. Dividend equivalents are accrued for earned restricted stock unit awards and will only be paid upon satisfaction of the terms and conditions applicable to the underlying restricted stock units. The fair value of the restricted stock unit awards is determined based on the close price of the Company's stock on the grant date. Performance-based restricted stock unit awards are earned dependent upon how certain performance goals are achieved during a specified performance period according to the terms determined at the date of the grant. These shares typically vest upon expiration of the performance period. Compensation cost is determined and charged to expense beginning in the performance period through the vesting period. Time-based restricted stock unit awards typically vest one to three years from the date of grant. Compensation cost related to time-based stock unit awards is recognized over the vesting period of the award. Amounts charged to compensation expense for restricted stock unit awards were $9.8 million, $8.6 million and $8.0 million for the fiscal years ended June 30, 2024, 2023 and 2022, respectively. As of June 30, 2024, $7.6 million of compensation cost related to restricted stock unit awards remains to be recognized over a weighted average remaining life of 1.5 years.
|  | Number of Awards |  | Weighted Average Grant Date Fair Value
Restricted Award Balance at June 30, 2021 |  | 496,325 |  |  | $ | 29.44 |
Time-based granted |  | 281,533 |  |  | $ | 35.76 |
Vested |  | (216,656) |  |  | $ | 32.71 |
Forfeited |  | (45,538) |  |  | $ | 32.35 |
Restricted Award Balance at June 30, 2022 |  | 515,664 |  |  | $ | 31.27 |
Time-based granted |  | 285,268 |  |  | $ | 39.01 |
Vested |  | (246,306) |  |  | $ | 31.37 |
Forfeited |  | (31,880) |  |  | $ | 35.23 |
Restricted Award Balance at June 30, 2023 |  | 522,746 |  |  | $ | 35.18 |
Time-based granted |  | 191,909 |  |  | $ | 61.42 |
Vested |  | (273,296) |  |  | $ | 32.67 |
Forfeited |  | (40,262) |  |  | $ | 45.19 |
Restricted Award Balance at June 30, 2024 |  | 401,097 |  |  | $ | 48.44 |
The Company granted performance-based awards in fiscal years 2024, 2023 and 2022 within the Omnibus Plan. The awards are granted at a target number of shares. These awards are earned dependent upon how certain performance goals are achieved during a specified performance period according to the terms determined at the date of the grant. The actual number of shares awarded may range from a minimum of 0 percent of the target shares to a maximum of 200 percent of the target shares. Participants do not have any rights to dividends (or equivalents) during the performance period. These shares typically vest upon expiration of the performance period. Compensation cost is determined and charged to expense beginning in the performance period through the vesting period. In fiscal years 2024, 2023 and 2022 expense of $8.3 million, $6.1 million and $1.1 million was recognized for these awards, respectively. Compensation cost in fiscal year 2024 reflects higher performance attainment compared to fiscal years 2023 and 2022. Director Stock Units According to the provisions of the Director's Plan, on the date of each annual stockholders' meeting or on such other regularly scheduled date as the Board of Directors may determine from time to time in light of the Company's prevailing practices for the grant of equity awards to employees, each Director shall be granted, in place of cash compensation, a number of stock units determined by dividing 50 percent of the Director's annual retainer by the fair market value of the Company's common stock on that date. These stock units vest on the first anniversary of the grant date, provided that one-quarter of the units granted within the one year period preceding separation from service (for reasons other than cause, a change in control, death or disability) will vest for every three months of service following the grant date. At the Director's election, the remaining 50 percent of the annual retainer and 100 percent of committee chair fees may be paid in stock units in lieu of cash. These units are immediately vested. In addition to the grant of retainer stock units described above, each Director may be granted annually an additional award of stock units as the Board may determine by resolution. These stock units vest on the first anniversary of the grant date, provided that one-quarter of the units granted within the one-year period preceding separation from service (for reasons other than cause, a change in control, death or disability) will vest for every three months of service following the grant date. Additional units are credited to each Director on a quarterly basis to reflect dividend equivalents on the Company's common stock. In the case of separation from service due to death or disability, all stock units shall immediately vest. Following a Director's separation from service, or such other elected distribution date or event, the number of stock units credited to the Director's account will be converted to an equivalent number of the Company's common stock.
|  | Number of Units |  | Weighted Average Grant Date Fair Value
Outstanding at June 30, 2021 |  | 353,365 |  |  | $ | 35.54 |
Granted |  | 37,234 |  |  | $ | 33.62 |
Distributed |  | (81,136) |  |  | $ | 33.28 |
Dividend equivalents |  | 7,770 |  |  | $ | — |
Outstanding at June 30, 2022 |  | 317,233 |  |  | $ | 31.89 |
Granted |  | 38,433 |  |  | $ | 34.93 |
Distributed |  | (54,057) |  |  | $ | 35.85 |
Dividend equivalents |  | 5,962 |  |  | $ | — |
Outstanding at June 30, 2023 |  | 307,571 |  |  | $ | 30.75 |
Granted |  | 21,590 |  |  | $ | 71.01 |
Distributed |  | (11,653) |  |  | $ | 36.14 |
Forfeited |  | (1,912) |  |  | $ | 70.64 |
Dividend equivalents |  | 3,223 |  |  | $ | — |
Outstanding at June 30, 2024 |  | 318,819 |  |  | $ | 33.85 |
Compensation cost is determined using the grant date fair value and charged to expense over the vesting period of one year. This amounted to $1.3 million, $1.2 million and $1.1 million for the fiscal years ended June 30, 2024, 2023 and 2022, respectively. As of June 30, 2024, $0.3 million of compensation cost related to director stock units remains to be recognized over a weighted average remaining life of 0.3 years.

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