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Share-based Compensation and Other Benefit Plans | 12 Months Ended
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Jun. 30, 2014
Share-based Compensation and Other Benefit Plans | I. Share-based Compensation and Other Benefit Plans: Equity incentive plan: The Company’s 2010 Equity Incentive Plan (the 2010 Plan) provides for the granting of incentive and nonqualified stock options, restricted stock, restricted stock units, performance shares, performance units and stock appreciation rights. There are 3.0 million shares of common stock authorized for grant under the 2010 Plan. At June 30, 2014, there were 2.3 million shares of common stock available for grant under the 2010 Plan. The maximum term of incentive options granted under the 2010 Plan is ten years. The 2010 Plan replaced the Company’s 1998 Nonqualified Stock Option Plan (the 1998 Plan) and 1997 Incentive Stock Option Plan (the 1997 Plan). The 2010 Plan, the 1998 Plan and the 1997 Plan (collectively, the Plans) are administered by the Board of Directors and its Compensation Committee, which determine the persons who are to receive awards under the Plans, the number of shares subject to each award and the term and exercise price of each award. The number of shares of common stock subject to outstanding awards at June 30, 2014 under the 2010 Plan, the 1998 Plan and the 1997 Plan were 656,000, 151,000, and 9,000, respectively. Stock option activity under the Plans for the three years ended June 30, 2014, consists of the following (shares in thousands):
|  | Shares |  |  | Weighted Average Exercise Price |  |  | Weighted Avg. Contractual Life (Yrs.) |  |  | Aggregate Intrinsic Value
Outstanding at June 30, 2011 |  |  | 499 |  |  | $ | 64.15 |  |  |  |  |  |  |
Granted |  |  | 95 |  |  |  | 71.94 |  |  |  |  |  |  |
Forfeited |  |  | (2 | ) |  |  | 76.15 |  |  |  |  |  |  |
Exercised |  |  | (17 | ) |  |  | 50.98 |  |  |  |  |  |  |
Outstanding at June 30, 2012 |  |  | 575 |  |  |  | 65.78 |  |  |  |  |  |  |
Granted |  |  | 175 |  |  |  | 67.80 |  |  |  |  |  |  |
Exercised |  |  | (22 | ) |  |  | 51.17 |  |  |  |  |  |  |
Outstanding at June 30, 2013 |  |  | 728 |  |  |  | 66.70 |  |  |  |  |  |  |
Granted |  |  | 251 |  |  |  | 80.88 |  |  |  |  |  |  |
Forfeited |  |  | (26 | ) |  |  | 76.23 |  |  |  |  |  |  |
Exercised |  |  | (142 | ) |  |  | 59.07 |  |  |  |  |  |  |
Outstanding at June 30, 2014 |  |  | 811 |  |  | $ | 72.11 |  |  |  | 5.4 |  |  | $16.6 million
Exercisable at June 30: |  |  |  |  |  |  |  |  |  |  |  |  |  |
2012 |  |  | 403 |  |  | $ | 62.67 |  |  |  |  |  |  |
2013 |  |  | 497 |  |  |  | 65.04 |  |  |  |  |  |  |
2014 |  |  | 534 |  |  |  | 69.49 |  |  |  | 5.1 |  |  | $12.3 million
The fair values of options granted under the Plans were estimated on the date of grant using the Black-Scholes option-pricing model with the following assumptions used:
|  | Year Ended June 30, |
|  | 2014 |  |  | 2013 |  |  | 2012 |
Dividend yield |  |  | 1.5% |  |  |  | 1.8% |  |  |  | 1.5% |
Expected volatility |  |  | 18%-22% |  |  |  | 18%-23% |  |  |  | 22%-23% |
Risk-free interest rates |  |  | 1.4%-2.1% |  |  |  | 0.4%-1.4% |  |  |  | 0.9%-2.0% |
Expected lives |  |  | 6 years |  |  |  | 5 years |  |  |  | 6 years |
The dividend yield is based on the Company’s historical annual cash dividend divided by the market value of the Company’s common stock. The expected annualized volatility is based on the Company’s historical stock price over a period equivalent to the expected life of the option granted. The risk-free interest rate is based on U.S. Treasury constant maturity interest rates with a term consistent with the expected life of the options granted. The weighted average fair value of options granted during fiscal 2014, 2013 and 2012 was $14.77, $9.72 and $14.14, respectively. The total intrinsic value of options exercised during fiscal 2014, 2013 and 2012 were $3.7 million, $0.4 million and $0.3 million, respectively. The total fair value of options vested during fiscal 2014, 2013 and 2012 were $2.2 million, $1.5 million and $1.6 million, respectively. In fiscal 2014 and fiscal 2013, 26,355 and 15,000 restricted common stock shares were granted at weighted average grant date fair values of $86.60 and $67.46 per share, respectively. Non-vested restricted common stock shares at June 30, 2014 and 2013 were 36,355 and 15,000, respectively. In fiscal 2014, 5,000 restricted stock units were granted at a weighted average grant date fair value of $86.25. The restricted stock units vest over a three year period. Stock-based compensation cost of $3.5 million, $1.9 million and $1.6 million was included in selling, general and administrative expense in fiscal 2014, 2013 and 2012, respectively. As of June 30, 2014, there was $5.5 million of unrecognized compensation cost related to non-vested stock options, non-vested restricted stock units and non-vested restricted stock which will be expensed in fiscal 2015 through 2018. The weighted average period over which the compensation cost is expected to be recognized is 1.2 years. Profit sharing and savings plans: The Company has profit sharing and savings plans for its U.S. employees, which conform to IRS provisions for 401(k) plans. The Company may make profit sharing contributions at the discretion of the Board of Directors. The Company has recorded an expense for contributions to the plans of $0.7 million and $0.8 million for the years ended June 30, 2014 and 2012, respectively. No contribution was charged to operations for fiscal 2013. The Company operates defined contribution pension plans for its U.K. employees. The Company has recorded an expense for contributions to the plans of $0.6 million, $0.6 million and $0.5 million for the years ended June 30, 2014, 2013 and 2012, respectively. Performance incentive programs: In fiscal 2014, under certain employment agreements and a Management Incentive Plan available to executives officers and certain management personnel, the Company recorded cash bonuses of $0.9 million and granted options for 216,000 shares of common stock, 5,000 restricted stock units and 17,855 shares of restricted common stock. In fiscal 2013 and 2012, under certain employment agreements with executive officers and an executive Incentive Bonus Plan, the Company recorded cash bonuses of $0.3 million and $31,000 and granted options for 132,852 and 22,932 shares of common stock for the years ended June 30, 2013 and 2012, respectively. In addition, in fiscal 2013, 15,000 restricted common stock shares were issued to an executive officer.

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- Definition The entire disclosure for an entity's employee compensation and benefit plans, including, but not limited to, postemployment and postretirement benefit plans, defined benefit pension plans, defined contribution plans, non-qualified and supplemental benefit plans, deferred compensation, share-based compensation, life insurance, severance, health care, unemployment and other benefit plans. + References No definition available. + Details
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