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Stockholders' Equity
 12 Months Ended
Jul. 31, 2011
Stockholders' Equity  
Stockholders' Equity

J.     STOCKHOLDERS' EQUITY

In fiscal 2010, the Company purchased 3,980,000 shares of its common stock at $29.00 per share and held them as treasury stock at a total cost of $115,420. The shares were repurchased by the Company from the Estate of Wade F. B. Thompson (the "Estate") in a private transaction. The late Wade F. B. Thompson was the Company's former Chairman, President and Chief Executive Officer. The repurchase transaction was evaluated and approved by members of the Company's Board of Directors who are not affiliated with the Estate. At the time of the repurchase, the shares represented 7.2% of the Company's common stock outstanding. The Company used available cash to purchase the shares.

The Board approved the Thor Industries, Inc. 2010 Equity and Incentive Plan (the "2010 Equity and Incentive Plan") on October 25, 2010 and the 2006 Equity Incentive Plan (the "2006 Equity Incentive Plan") on October 16, 2006. These plans were subsequently approved by shareholders at the 2010 and 2006 annual meetings. These plans are designed, among other things, to replace the Company's 1999 Stock Option Plan (the "1999 Plan") and the Company's 1997 Restricted Stock Plan (the "1997 Plan"). Upon approval of the 2006 Equity Incentive Plan, the 1999 Plan and the 1997 Plan were frozen. As a result, there will be no further grants pursuant to either the 1999 Plan or the 1997 Plan. However, outstanding grants under both plans remain outstanding, subject to the respective terms and conditions of the plans. The maximum number of shares issuable under the 2010 Equity and Incentive Plan is 2,000,000 and under the 2006 Equity Incentive Plan is 1,100,000. Awards may be in the form of options (incentive stock options and non-statutory stock options), restricted stock, restricted stock units, performance compensation awards and stock appreciation rights. Options expire 10 years from the date of grant and are vested evenly over 3 to 5 years from the date of grant.

Stock Options – A summary of option activity under the 1999 Plan, the 2010 Equity and Incentive Plan and the 2006 Equity Incentive Plan is as follows:

 

                                                     
    2011     2010     2009  
    Shares    

Weighted-
Average
Exercise Price

     Shares     Weighted-
Average
Exercise Price		       Shares       Weighted-
Average
Exercise Price		  

Outstanding at beginning of year

     1,381,725          $ 30.20        513,561      $ 23.47        514,561      $ 23.48   

Exercised

     (78,500)            13.33        (586)        26.91        (1,000)        26.91   

Canceled

     –            –        (1,250)        27.40        –        –   

Granted

     130,000            27.72        870,000        34.17        –        –   
   

 

 

        

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Outstanding at end of year

         1,433,225          $ 30.90        1,381,725      $ 30.20        513,561      $ 23.47   
   

 

 

        

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Vested and expected to vest at end of year

     833,225          $ 27.82          1,381,725      $ 30.20        513,561      $ 23.47   
   

 

 

        

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Exercisable at end of year

     609,891          $         27.84        445,057      $         22.99        380,227      $         22.39   
   

 

 

        

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

The weighted average remaining contractual life for outstanding options and exercisable options at July 31, 2011, was 7.53 and 5.62 years, respectively.

The aggregate intrinsic value of options outstanding and exercisable as of July 31, 2011, 2010 and 2009 is as follows:

 

                         
    2011     2010     2009  

Aggregate intrinsic value of options outstanding and expected to vest

     $ 647        $ 2,350        $ 1,509   

Aggregate intrinsic value of options exercisable

     $         647        $       2,263        $       1,509   

 

The fair value of each option award is estimated on the date of grant using the Black-Scholes option-pricing model. Assumptions utilized in the model are evaluated when awards are granted. Forfeiture assumptions are revised as necessary to reflect experience. The fair value of the stock options is based upon the market price of the underlying common stock as of the date of the grant, reduced by the present value of estimated future dividends and risk-free interest rates. The risk-free rate for periods within the contractual life of the option is based on the U.S. treasury security rate estimated for the expected life of the options at the date of grant. Expected volatilities are based on the historical volatility of the Company's stock. The expected term of the options represents the period of time that options granted are expected to be outstanding and is estimated using the Company's historical exercise and termination behavior.

The weighted average fair value of options granted in fiscal 2011 and fiscal 2010 were $10.80 and $14.69, respectively, as calculated by the Black-Scholes method. There were no option grants during fiscal 2009. The assumptions used in determining the fair value of the options granted during fiscal 2011 and fiscal 2010 are as follows:

 

                                 
Grant Date  

July 19, 2011

    

March 14, 2011

    

July 20, 2010

    

April 28, 2010

  

Expected volatility

     46%        46%        45%        45%   

Expected life of grant

     6 years        6 years        6 years        6 years   

Risk-free interest rate

     1.8%        2.3%        2.2%        3.1%   

Expected dividend rate

     1.8%        1.2%        0.9%        0.9%   

In fiscal years 2011, 2010 and 2009, the Company recorded expenses of $2,707, $1,375 and $589, respectively, for stock option awards. At July 31, 2011, there was $2,431 of total unrecognized compensation costs related to stock options that is expected to be recognized over a weighted average period of 4.06 years.

Cash received from stock option exercises for the fiscal years ended July 31, 2011, 2010 and 2009 was $1,047, $16 and $27, respectively. The total intrinsic value of stock options exercised in fiscal years 2011, 2010 and 2009 was $1,551, $3 and $0, respectively.

The Company recognized a tax benefit related to stock based compensation expense of $1,172, $481 and $226 in fiscal 2011, 2010 and 2009, respectively.

Exercises of options are satisfied with the issuance of new shares from authorized shares.

Stock Awards – The Company's 1997 Restricted Stock Plan allowed for the granting of up to 600,000 shares of restricted stock to select executives. Restrictions expire 50% after five years following the date of issue and the balance after six years.

A summary of stock award activity under this Plan is as follows:

 

                                                 
    2011     2010     2009  
   

Shares

    

Weighted

Average Grant

Date Fair Value

    

Shares

    

Weighted

Average Grant

Date Fair Value

    

Shares

    

Weighted

Average Grant

Date Fair Value

  

Nonvested, Beginning of year

                 –          $            –        4,000              $        26.91        32,000              $    19.22       

Granted

                 –        –        –        –        –        –       

Vested

                 –        –              (4,000)        26.91          (28,000)        18.12       

Forfeited

                 –        –        –        –        –        –       
   

 

 

            

 

 

            

 

 

          

Nonvested, End of year

                 –          $            –        –              $                –        4,000              $    26.91       
   

 

 

            

 

 

            

 

 

          

In fiscal 2011, 2010 and 2009 the Company recorded expense for restricted stock awards of $0, $12, and $68, respectively. At July 31, 2011, there was no unrecognized compensation costs related to restricted stock awards.

The total fair value of restricted stock vested during fiscal year 2011, 2010 and 2009 was $0, $113 and $480, respectively.