XML 48 R13.htm IDEA: XBRL DOCUMENT v2.4.0.6
Stock-Based Compensation
 9 Months Ended
Mar. 31, 2013
Stock-Based Compensation [Abstract]  
Stock-Based Compensation

7. Stock-Based Compensation

Stock-based compensation expense recognized, together with the income tax benefits recognized, is as follows (in thousands):

  Three Months Ended Nine Months Ended
  March 31, March 31,
    2013   2012   2013   2012
Stock-based compensation included in indirect costs and                
selling expenses:                
Restricted stock and restricted stock unit (RSU)                
expense $ 349 $ 3,430 $ 5,830 $ 9,656
Non-qualified stock option and stock settled stock                
appreciation right (SSAR) expense   144   422   564   1,439
Total stock-based compensation expense $ 493 $ 3,852 $ 6,394 $ 11,095
 
Income tax benefit recognized for stock-based                
compensation expense $ 201 $ 1,483 $ 2,417 $ 4,360

Under the terms of its 2006 Stock Incentive Plan (the 2006 Plan), the Company may issue, among others, non-qualified stock options, restricted stock, RSUs, SSARs, and performance awards, collectively referred to herein as equity instruments. During the periods presented all equity instrument grants were made in the form of RSUs. Other than performance-based RSUs which contain a market-based element, the fair value of RSU grants were determined based on the closing price of a share of the Company's common stock on the date of grant. The fair value of RSUs with market-based vesting features was also measured on the grant date, but was done so using a binomial lattice model.

Annual grants under the 2006 Plan are generally made to the Company's key employees during the first quarter of the Company's fiscal year and to members of the Company's Board of Directors during the second quarter of the Company's fiscal year. In addition, the Company may issue, with the approval of its Chief Executive Officer, equity instruments to other employees, including strategic new hires.

In September 2012, the Company made its annual grant to its key employees consisting of 238,810 Performance Restricted Stock Units (PRSUs). The final number of such performance-based RSUs which would be considered earned by the participants and eventually vest is based on the achievement of a specified Net After Tax Profit (NATP) for the year ending June 30, 2013 and on the average share price of Company stock for the 90 day period ending September 14, 2013 as compared to the average share price for the 90 day period ended September 14, 2012. No PRSUs will be earned if the specified NATP for the fiscal year ending June 30, 2013 is not met. During the three months ended March 31, 2013, the Company determined it was probable that the Company would not achieve the specified NATP for the year ending June 30, 2013. The result of not achieving the specified NATP would be that no PRSUs would be earned for this grant. Upon making this determination, the Company reversed all stock-based compensation associated with this grant of which $1.5 million had been recognized during the six months ended December 31, 2012.

On February 21, 2013, the Company made a one-time grant of 300,000 RSUs to its newly appointed Chief Executive Officer. These RSUs will vest in three equal annual increments beginning on the third anniversary of his employment, dependent upon continuing service as an employee of the Company.

The total number of shares authorized by shareholders for grants under the 2006 Plan and its predecessor plan is 12,450,000 as of March 31, 2013. The aggregate number of grants that may be made may exceed this approved amount as forfeited SSARs, stock options, restricted stock and RSUs, and vested but unexercised SSARs and stock options that expire, become available for future grants. As of March 31, 2013, cumulative grants of 12,903,198 equity instruments underlying the shares authorized have been awarded, and 3,789,320 of these instruments have been forfeited.

Activity related to SSARs/non-qualified stock options and RSUs/restricted shares during the nine months ended March 31, 2013 is as follows:

  SSARs/        
  Non-qualified     RSUs/  
  Stock Options     Restricted Shares  
Outstanding, June 30, 2012 1,683,698     1,651,321  
Granted —     596,789  
Exercised/Issued (594,808 )   (280,685 )
Forfeited/Lapsed (564,844 )   (645,368 )
Outstanding, March 31, 2013 524,046     1,322,057  
Weighted average grant date fair value for RSUs/restricted shares          
granted during the nine months ended March 31, 2013     $ 59.12  

 

As of March 31, 2013, there was $0.2 million of total unrecognized compensation cost related to SSARs and stock options scheduled to be recognized over a weighted average period of 0.4 years, and $33.9 million of total unrecognized compensation cost related to restricted shares and RSUs scheduled to be recognized over a weighted-average period of 3.5 years.