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Stock-Based Compensation | 9 Months Ended
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Mar. 31, 2012
Stock-Based Compensation [Abstract] |
Stock-Based Compensation | Note 7 – Stock-Based Compensation Our shareholders approved the adoption of and subsequent amendments to the Lancaster Colony Corporation 2005 Stock Plan (the “2005 Plan”). The 2005 Plan reserved 2,000,000 common shares for issuance to our employees and directors, and all awards granted under the 2005 Plan will be exercisable at prices not less than fair market value as of the date of the grant. The vesting period for awards granted under the 2005 Plan varies as to the type of award granted, but generally these awards have a maximum term of five years. Stock-Settled Stock Appreciation Rights We use periodic grants of stock-settled stock appreciation rights (“SSSARs”) as a vehicle for rewarding certain employees with long-term incentives for their efforts in helping to create long-term shareholder value. We calculate the fair value of SSSARs grants using the Black-Scholes option-pricing model. Our policy is to issue shares upon SSSARs exercise from new shares that had been previously authorized. In February 2012 and 2011, we granted SSSARs to various employees under the terms of the 2005 Plan. The following table summarizes information relating to each of these grants:
|  |  | 2012 |  | 2011
| SSSARs granted.............................................................................................. |  | 185 |  | 94
| Weighted average fair value per right......................................................... |  | $ 9.08 |  | $ 10.12
| Assumptions used in fair value calculations: |  |  |  |
| Risk-free interest rate............................................................................... |  | 0.41% |  | 1.27%
| Dividend yield........................................................................................... |  | 2.11% |  | 2.28%
| Volatility factor of the expected market price of our common stock.......................................................................................... |  | 24.31% |  | 28.78%
| Weighted average expected life in years.............................................. |  | 2.76 |  | 3.11
| Estimated forfeiture rate............................................................................... |  | 4.00% |  | 4.00%
For each of these grants, the volatility factor was estimated based on actual historical volatility of our stock for a time period equal to the term of the SSSARs. The expected average life was determined based on historical exercise experience for this type of grant. The SSSARs from each of these grants vest one-third on the first anniversary of the grant date, one-third on the second anniversary of the grant date and one-third on the third anniversary of the grant date. We recognize compensation expense over the requisite service period. Compensation cost was reflected in Cost of Sales or Selling, General and Administrative Expenses based on the grantees’ salaries expense classification and was allocated to each segment appropriately. We recorded tax benefits and gross windfall tax benefits related to SSSARs. These windfall tax benefits were included in the financing section of the Condensed Consolidated Statements of Cash Flows. The following table summarizes SSSARs compensation expense and tax benefits recorded:
|  | Three Months Ended March 31 |  | Nine Months Ended March 31
|  | 2012 |  | 2011 |  | 2012 |  | 2011
| Compensation expense................................................. | $ 453 |  | $ 289 |  | $ 1,099 |  | $ 843
| Tax benefits..................................................................... | $ 159 |  | $ 101 |  | $ 385 |  | $ 295
| Intrinsic value of exercises............................................ | $ 138 |  | $ 326 |  | $ 281 |  | $ 344
| Gross windfall tax benefits............................................ | $ 58 |  | $ 117 |  | $ 122 |  | $ 123
The total fair values of SSSARs vested are as follows:
|  |  | Nine Months Ended March 31
|  |  | 2012 |  | 2011
| Fair value of vested rights............................................................................. |  | $ 1,107 |  | $ 1,095
The following table summarizes the activity relating to SSSARs granted under the 2005 Plan for the nine months ended March 31, 2012:
|  | Number of Rights |  | Weighted Average Exercise Price |  | Weighted Average Remaining Contractual Life in Years |  | Aggregate Intrinsic Value
| Outstanding at beginning of period....................... | 324 |  | $ 53.98 |  |  |  |
| Exercised............................................................... | (41) |  | $51.10 |  |  |  |
| Granted.................................................................. | 185 |  | $68.12 |  |  |  |
| Forfeited................................................................ | (1) |  | $ 58.79 |  |  |  |
| Outstanding at end of period................................ | 467 |  | $ 59.82 |  | 3.71 |  | $ 3,403
| Exercisable and vested at end of period............ | 167 |  | $ 51.71 |  | 2.58 |  | $ 2,459
| Vested and expected to vest at end of period.... | 455 |  | $ 59.71 |  | 3.69 |  | $ 3,371
At March 31, 2012, there was approximately $2.5 million of unrecognized compensation cost related to SSSARs that we will recognize over a weighted-average period of approximately 2.27 years. Restricted Stock We use periodic grants of restricted stock as a vehicle for rewarding our nonemployee directors and certain employees with long-term incentives for their efforts in helping to create long-term shareholder value. In February 2012 and 2011, we granted shares of restricted stock to various employees under the terms of the 2005 Plan. The following table summarizes information relating to each of these grants:
|  |  | 2012 |  | 2011
| Restricted stock granted................................................................................ |  | 25 |  | 7
| Grant date fair value..................................................................................... |  | $ 1,693 |  | $ 390
| Closing stock price on grant date................................................................ |  | $ 68.12 |  | $ 57.78
| Estimated forfeiture rate............................................................................... |  | 4.00% |  | 4.00%
The restricted stock under each of these grants vests on the third anniversary of the grant date. Under the terms of the grants, employees receive dividends on unforfeited restricted stock regardless of their vesting status. An additional 5,650 shares of restricted stock that were granted to various employees in February 2009 vested during the third quarter of 2012. In November 2011, we granted a total of 7,427 shares of restricted stock to our seven nonemployee directors under the terms of the 2005 Plan. The restricted stock had a grant date fair value of approximately $0.5 million based on a per share closing stock price of $65.97. This restricted stock vests over a one-year period, and all of these shares are expected to vest. Dividends earned on the stock during the vesting period will be paid to the directors at the time the stock vests. Compensation expense related to the restricted stock award will be recognized over the requisite service period. An additional 8,155 shares of restricted stock that were granted to our seven nonemployee directors in November 2010 vested during the second quarter of 2012, and the directors were paid the related dividends. We recognize compensation expense over the requisite service period. Compensation cost was reflected in Cost of Sales or Selling, General and Administrative Expenses based on the grantees’ salaries expense classification and was allocated to each segment appropriately. We recorded tax benefits and gross windfall tax benefits related to restricted stock. Windfall tax benefits, if any, were included in the financing section of the Condensed Consolidated Statements of Cash Flows. The following table summarizes restricted stock compensation expense and tax benefits recorded:
|  | Three Months Ended March 31 |  | Nine Months Ended March 31
|  | 2012 |  | 2011 |  | 2012 |  | 2011
| Compensation expense........................................... | $ 343 |  | $ 270 |  | $ 892 |  | $ 906
| Tax benefits............................................................... | $ 120 |  | $ 94 |  | $ 312 |  | $ 317
| Gross windfall tax benefits...................................... | $ 56 |  | $ 145 |  | $ 71 |  | $ 145
The total fair values of restricted stock vested are as follows:
|  |  | Nine Months Ended March 31 |
|  |  | 2012 |  | 2011 |
| Fair value of vested shares........................................................................... |  | $ 645 |  | $ 1,258 |
The following table summarizes the activity relating to restricted stock granted under the 2005 Plan for the nine-month period ended March 31, 2012:
|  |  | Number of Shares |  | Weighted Average Grant Date Fair Value
| Unvested restricted stock at beginning of period.................................... |  | 44 |  | $ 54.86
| Granted..................................................................................................... |  | 32 |  | $ 67.63
| Vested........................................................................................................ |  | (14) |  | $ 46.75
| Forfeited................................................................................................... |  | - |  | $ -
| Unvested restricted stock at end of period............................................ |  | 62 |  | $ 63.26
At March 31, 2012, there was approximately $2.5 million of unrecognized compensation expense related to restricted stock that we will recognize over a weighted-average period of approximately 2.19 years.

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- Definition The entire disclosure for compensation-related costs for equity-based compensation, which may include disclosure of policies, compensation plan details, allocation of equity compensation, incentive distributions, equity-based arrangements to obtain goods and services, deferred compensation arrangements, employee stock ownership plan details and employee stock purchase plan details. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Staff Accounting Bulletin (SAB) -Number Topic 14 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 718 -SubTopic 10 -Section 50 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=6415400&loc=d3e5070-113901 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 505 -SubTopic 50 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=6406099&loc=d3e25284-112666 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 718 -SubTopic 10 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=6415400&loc=d3e5047-113901 Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher AICPA -Name Statement of Position (SOP) -Number 93-6 -Paragraph 53 -LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy. Reference 6: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 718 -SubTopic 40 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=6418621&loc=d3e17540-113929 Reference 7: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 123R -Paragraph 64, 65, A240 -LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy. Reference 8: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 718 -SubTopic 10 -Section 50 -Paragraph 4 -URI http://asc.fasb.org/extlink&oid=6415400&loc=d3e5444-113901 + Details
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