XML 25 R14.htm IDEA: XBRL DOCUMENT
v3.21.2

Stock Based Compensation (Text Block) | 3 Months Ended
--- | ---
Sep. 30, 2021
Share-based Payment Arrangement [Abstract] |
Share-based Payment Arrangement [Text Block] | STOCK-BASED COMPENSATION Our operating income for the three months ended September 30, 2021 and 2020 included $6,071 and $4,625 of stock-based compensation costs, respectively. Stock Options On November 10, 2015, the Company adopted the 2015 Equity Incentive Plan ("2015 EIP") for its employees and non-employee directors. The plan allows for grants of stock options, stock appreciation rights, restricted stock shares or units, and performance shares or units. The maximum number of shares authorized for issuance under the plan is 3,000. For stock options, terms and vesting periods of the options are determined by the Compensation Committee of the Board of Directors when granted. The option period must expire not more than ten years from the option grant date. The options granted under this plan are exercisable beginning three years after the grant date at an exercise price equal to 100% of the fair market value of the stock at the grant date. The options terminate upon surrender of the option, ninety days after termination of employment, upon the expiration of one year following notification of a deceased optionee, or ten years after grant. A summary of option plan activity under this plan is as follows:
| Number of Shares |  | Weighted Average Exercise Price |  | Aggregate Intrinsic Value
Outstanding July 1, 2021 | 22 |  |  | $ | 87.27 |  |  |
Granted | — |  |  | — |  |  |
Forfeited | — |  |  | — |  |  |
Exercised | — |  |  | — |  |  |
Outstanding September 30, 2021 | 22 |  |  | $ | 87.27 |  |  | $ | 1,665 |
Vested and Expected to Vest September 30, 2021 | 22 |  |  | $ | 87.27 |  |  | $ | 1,665 |
Exercisable September 30, 2021 | 22 |  |  | $ | 87.27 |  |  | $ | 1,665 |
At September 30, 2021, there was no compensation cost yet to be recognized related to outstanding options. For options currently exercisable, the weighted average remaining contractual term (remaining period of exercisability) as of September 30, 2021 was 4.75 years. The Company issues unit awards under the 2015 EIP. The following table summarizes non-vested performance and restricted stock unit awards as of September 30, 2021:
| Units |  | Weighted Average Grant Date Fair Value |  | Aggregate Intrinsic Value
Outstanding July 1, 2021 | 294 |  |  | $ | 160.22 |  |  |
Granted | 80 |  |  | 194.21 |  |  |
Vested | (14) |  |  | 150.65 |  |  |
Forfeited | (39) |  |  | 199.28 |  |  |
Outstanding September 30, 2021 | 321 |  |  | $ | 164.27 |  |  | $ | 52,619 |
The 80 unit awards granted in fiscal 2022 had service requirements and performance targets, with 32 having only service requirements. The unit awards with only service requirements were valued at the weighted-average fair value of the non-vested units based on the fair market value of the Company’s equity shares on the grant date, less the present value of expected future dividends to be declared during the vesting period, consistent with the methodology for calculating compensation expense on such awards. The remaining 48 unit awards granted in fiscal 2022 have performance targets along with service requirements. 19 of the remaining performance and service requirement unit awards were valued at grant by estimating 100% payout at release and using the fair market value of the Company equity shares on the grant date, less the present value of expected future dividends to be declared during the vesting period. The payout at release of approximately half of these unit awards will be determined based on the Company's compound annual growth rate (CAGR) for revenue (excluding adjustments) for the three-year vesting period compared against goal thresholds as defined in the award agreement. The performance payout at release of the other half of these unit awards will be determined based on the expansion of the Company's non-GAAP operating margin over the three-year vesting period compared against goal thresholds as defined in the award agreement. 29 of the remaining performance and service requirement unit awards were valued at grant using a Monte Carlo pricing model as of the measurement date customized to the specific provisions of the Company’s plan design. Per the Company's award vesting and settlement provisions, the awards that utilized a Monte Carlo pricing model were valued at grant on the basis of Total Shareholder Return (TSR) in comparison to the custom peer group comprised of participants approved by the Compensation Committee of the Company's Board of Directors for fiscal year 2022. The Monte Carlo inputs used in the model to estimate fair value at the measurement date and resulting values for these performance unit awards are as follows.
Fiscal year 2022 Monte Carlo award inputs: |  |  |  |  |
Volatility | 28.55 | % |  |  |  |
Risk free interest rate | 0.32 | % |  |  |  |
Annual dividend based on most recent quarterly dividend | $ | 1.84 |  |  |  |  |
Beginning TSR | 65 | % |  |  |  |
At September 30, 2021, there was $28,904 of compensation expense, excluding forfeitures, that has yet to be recognized related to non-vested restricted stock unit awards, which will be recognized over a weighted average period of 1.53 years.

X
- Definition The entire disclosure for share-based payment arrangement. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 718 -URI http://asc.fasb.org/topic&trid=2228938 + Details
Name: | us-gaap_DisclosureOfCompensationRelatedCostsShareBasedPaymentsTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- References No definition available. + Details
Name: | us-gaap_DisclosureOfCompensationRelatedCostsSharebasedPaymentsAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration