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Share Capital, Option Plans And Share-Based Payments | 3 Months Ended
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Sep. 30, 2014
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] |
Share Capital, Option Plans And Share-Based Payments | SHARE CAPITAL, OPTION PLANS AND SHARE-BASED PAYMENTS Dividends Stock Dividend On January 23, 2014, we announced that our Board of Directors approved a two-for-one stock-split of our outstanding Common Shares. The two-for-one stock-split was implemented by way of a stock dividend whereby shareholders received one Common Share for each Common Share held. The record date for the stock dividend was February 7, 2014 and the payment date was February 18, 2014. As a result of the two-for-one stock-split, all historical per share data, number of Common Shares outstanding and share-based compensation awards are presented on a post stock-split basis. Cash Dividends For the three months ended September 30, 2014, pursuant to the Company’s dividend policy, we declared total non-cumulative dividends of $0.1725 per Common Share, in the amount of $21.0 million, which we paid during the same period. For the three months ended September 30, 2013, pursuant to the Company’s dividend policy, we declared total non-cumulative dividends of $0.15 per Common Share, in the amount of $17.7 million, which we paid during the same period. Share Capital Our authorized share capital includes an unlimited number of Common Shares and an unlimited number of Preference Shares. No Preference Shares have been issued. Treasury Stock During the three months ended September 30, 2014 and 2013, we did not repurchase any of our Common Shares for potential reissuance under our Long Term Incentive Plans (LTIP) or otherwise. During the three months ended September 30, 2014 and 2013, we did not reissue any Common Shares from treasury stock. Share-Based Payments Total share-based compensation expense for the periods indicated below is detailed as follows:
|  | Three Months Ended September 30,
|  | 2014 |  | 2013
Stock options |  | $ | 2,569 |  |  | $ | 1,357 |
Performance Share Units (issued under LTIP) |  | 591 |  |  | 2,168 |
Restricted Share Units (issued under LTIP) |  | 743 |  |  | 604 |
Restricted Share Units (other) |  | 75 |  |  | 216 |
Deferred Share Units (directors) |  | 471 |  |  | 267 |
Total share-based compensation expense |  | $ | 4,449 |  |  | $ | 4,612 |
Summary of Outstanding Stock Options As of September 30, 2014, options to purchase an aggregate of 4,187,409 Common Shares were outstanding and 3,437,482 Common Shares were available for issuance under our stock option plans. Our stock options generally vest over four years and expire between seven and ten years from the date of the grant. The exercise price of the options is set at an amount that is not less than the closing price of our Common Shares on the NASDAQ on the trading day immediately preceding the applicable grant date. A summary of activity under our stock option plans for three months ended September 30, 2014 is as follows:
| Options |  | Weighted- Average Exercise Price |  | Weighted- Average Remaining Contractual Term (years) |  | Aggregate Intrinsic Value ($’000s)
Outstanding at June 30, 2014 | 4,273,226 |  |  | $ | 36.35 |  |  |  |  |
Granted | 397,100 |  |  | 56.33 |  |  |  |  |
Exercised | (246,745 | ) |  | 25.35 |  |  |  |  |
Forfeited or expired | (236,172 | ) |  | 37.04 |  |  |  |  |
Outstanding at September 30, 2014 | 4,187,409 |  |  | $ | 38.85 |  |  | 5.33 |  | $ | 69,752 |
Exercisable at September 30, 2014 | 768,459 |  |  | $ | 23.38 |  |  | 3.21 |  | $ | 24,625 |
We estimate the fair value of stock options using the Black-Scholes option-pricing model, consistent with the provisions of ASC Topic 718, “Compensation—Stock Compensation” (Topic 718) and SEC Staff Accounting Bulletin No. 107. The option-pricing models require input of subjective assumptions, including the estimated life of the option and the expected volatility of the underlying stock over the estimated life of the option. We use historical volatility as a basis for projecting the expected volatility of the underlying stock and estimate the expected life of our stock options based upon historical data. We believe that the valuation technique and the approach utilized to develop the underlying assumptions are appropriate in calculating the fair value of our stock option grants. Estimates of fair value are not intended, however, to predict actual future events or the value ultimately realized by employees who receive equity awards. For the periods indicated, the weighted-average fair value of options and weighted-average assumptions were as follows:
|  | Three Months Ended September 30,
|  | 2014 |  | 2013
Weighted–average fair value of options granted |  | $ | 14.30 |  |  | $ | 7.75 |
Weighted-average assumptions used: |  |  |  |
Expected volatility |  | 32 | % |  | 32 | %
Risk–free interest rate |  | 1.51 | % |  | 1.19 | %
Expected dividend yield |  | 1.15 | % |  | 1.80 | %
Expected life (in years) |  | 4.34 |  |  | 4.36 |
Forfeiture rate (based on historical rates) |  | 5 | % |  | 5 | %
Average exercise share price |  | $ | 56.33 |  |  | $ | 33.17 |
As of September 30, 2014, the total compensation cost related to the unvested stock option awards not yet recognized was approximately $33.2 million, which will be recognized over a weighted-average period of approximately 3 years. No cash was used by us to settle equity instruments granted under share-based compensation arrangements. We have not capitalized any share-based compensation costs as part of the cost of an asset in any of the periods presented. For the three months ended September 30, 2014, cash in the amount of $6.3 million was received as the result of the exercise of options granted under share-based payment arrangements. The tax benefit realized by us during the three months ended September 30, 2014 from the exercise of options eligible for a tax deduction was $0.5 million. For the three months ended September 30, 2013, cash in the amount of $1.2 million was received as the result of the exercise of options granted under share-based payment arrangements. The tax benefit realized by us during the three months ended September 30, 2013 from the exercise of options eligible for a tax deduction was $0.1 million. Long-Term Incentive Plans We incentivize our executive officers, in part, with long term compensation pursuant to our LTIP. The LTIP is a rolling three year program that grants eligible employees a certain number of target Performance Share Units (PSUs) and/or RSUs. Target PSUs become vested upon the satisfaction of certain financial and/or operational performance criteria (the Performance Conditions) that are determined at the time of the grant. Target RSUs become vested when an eligible employee remains employed throughout the vesting period. LTIP grants that have recently vested, or have yet to vest, are described below. LTIP grants will be referred to in this Quarterly Report on Form 10-Q based upon the year in which the grants are expected to vest and be settled. Grants made in Fiscal 2012 under the LTIP (collectively referred to as Fiscal 2014 LTIP) took effect in Fiscal 2012 starting on February 3, 2012. Awards made under the Fiscal 2014 LTIP will be issued in the second quarter of Fiscal 2015 in accordance with our insider trading policy, which states, in part, that stock awards may not be issued while a "trading window" is closed. We expect to settle the Fiscal 2014 LTIP awards in stock. Grants made in Fiscal 2013 under the LTIP (collectively referred to as Fiscal 2015 LTIP) took effect in Fiscal 2013 starting on November 2, 2012 for the RSUs and December 3, 2012 for the PSUs. The Performance Conditions for vesting of the PSUs are based solely upon market conditions. RSUs granted are employee service-based awards and vest over the life of the Fiscal 2015 LTIP. We expect to settle the Fiscal 2015 LTIP awards in stock. Grants made in Fiscal 2014 under the LTIP (collectively referred to as Fiscal 2016 LTIP) took effect in Fiscal 2014 starting on November 1, 2013. The Performance Conditions for vesting of the PSUs are based solely upon market conditions. RSUs granted on November 1, 2013 are employee service-based awards and vest over the life of the Fiscal 2016 LTIP. We expect to settle the Fiscal 2016 LTIP awards in stock. Grants made in Fiscal 2015 under the LTIP (collectively referred to as Fiscal 2017 LTIP), consisting of PSUs and RSUs, took effect in Fiscal 2015 starting on September 4, 2014. The Performance Conditions for vesting of the PSUs are based solely upon market conditions. The RSUs are employee service-based awards and vest over the life of the Fiscal 2017 LTIP. We expect to settle the Fiscal 2017 LTIP awards in stock. PSUs and RSUs granted under the LTIPs have been measured at fair value as of the effective date, consistent with Topic 718, and will be charged to share-based compensation expense over the remaining life of the plan. Stock options granted under the LTIPs have been measured using the Black-Scholes option-pricing model, consistent with Topic 718. We estimate the fair value of PSUs using the Monte Carlo pricing model and RSUs have been valued based upon their grant date fair value. Expected and actual stock compensation expense for each of the above mentioned LTIP plans is as follows:
|  |  |  |  |  |  | Three Months Ended September 30,
Grants Made Under LTIP | Equity Instrument | Grant Date | End Date |  | Expected Total LTIP Expense |  | 2014 |  | 2013
Fiscal 2013 LTIP | PSU | 10/29/2010 | 9/15/2013 |  | 6,489 |  |  | — |  |  | 215 |
Fiscal 2014 LTIP | PSU | 2/3/2012 | 9/15/2014 |  | 7,838 |  |  | 420 |  |  | 1,370 |
Fiscal 2015 LTIP | PSU | 12/3/2012 | 9/15/2015 |  | 2,313 |  |  | (1 | ) |  | 583 |
Fiscal 2015 LTIP | RSU | 11/2/2012 | 9/15/2015 |  | 3,804 |  |  | 211 |  |  | 604 |
Fiscal 2016 LTIP | PSU | 11/1/2013 | 9/15/2016 |  | 1,638 |  |  | 85 |  |  | — |
Fiscal 2016 LTIP | RSU | 11/1/2013 | 9/15/2016 |  | 4,162 |  |  | 329 |  |  | — |
Fiscal 2017 LTIP | PSU | 9/4/2014 | 9/15/2017 |  | 3,701 |  |  | 87 |  |  | — |
Fiscal 2017 LTIP | RSU | 9/4/2014 | 9/15/2017 |  | 8,645 |  |  | 203 |  |  | — |
|  |  |  |  | $ | 38,590 |  |  | $ | 1,334 |  |  | $ | 2,772 |
Of the total expected LTIP expense of $38.6 million noted in the table above, $20.7 million has been recognized to date and the remaining expected total compensation cost of $17.9 million is expected to be recognized over a weighted average period of 2.3 years. Restricted Share Units (RSUs) On September 8, 2014, we granted 12,500 RSUs to our Chief Financial Officer, in accordance with his employment agreement. The RSUs will vest equally over three years. We expect to settle the awards in stock. Deferred Stock Units (DSUs) During the three months ended September 30, 2014, we granted 398 DSUs to certain non-employee directors (three months ended September 30, 2013—486 on a post stock-split basis). The DSUs were issued under our Deferred Share Unit Plan. DSUs granted as compensation for directors fees vest immediately, whereas all other DSUs granted vest at our next annual general meeting following the granting of the DSUs. No DSUs are payable by us until the director ceases to be a member of the Board. Employee Share Purchase Plan (ESPP) During the three months ended September 30, 2014, cash in the amount of approximately $0.8 million was received from employees that will be used to purchase Common Shares in future periods (three months ended September 30, 2013—$0.7 million)

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- Definition The entire disclosure for accounts comprising shareholders' equity, comprised of portions attributable to the parent entity and noncontrolling interest, including other comprehensive income, and compensation-related costs for equity-based compensation. Includes, but is not limited to, disclosure of policies, compensation plan details, equity-based arrangements to obtain goods and services, deferred compensation arrangements, and employee stock purchase plan details. + References No definition available. + Details
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