XML 32 R20.htm IDEA: XBRL DOCUMENT
v3.21.2

Note 14 - Share-based Compensation | 3 Months Ended
--- | ---
Sep. 30, 2021
Notes to Financial Statements |
Share-based Payment Arrangement [Text Block] |
(14) | Share-Based Compensation
We recognized total share-based compensation expense of $0.3 million during the three months ended September 30, 2021 and 2020, respectively. These amounts have been included in the consolidated statements of comprehensive income within SG&A. As of September 30, 2021, $3.4 million of total unrecognized compensation expense related to non-vested equity awards is expected to be recognized over a weighted average period of 2.7 years. There was no share-based compensation capitalized for the three months ended September 30, 2021 and 2020, respectively. At September 30, 2021, there were 1,245,400 shares of common stock available for future issuance pursuant to the Ethan Allen Interiors Inc. Stock Incentive Plan (the “Plan”), which provides for the grant of stock options, restricted stock, and stock units. Stock Option Activity Employee Stock Option Grants. There were no stock option awards granted to employees during the three months ended September 30, 2021 and 2020. Non-Employee Stock Option Grants. The Plan also provides for the grant of share-based awards, including stock options, to non-employee directors of the Company. During the first quarter of fiscal 2022, we granted 25,410 stock options at an exercise price of $23.61 to our existing non-employee directors. In the prior year first quarter, we granted 37,008 stock options at an exercise price of $12.97. These stock options vest in three equal annual installments beginning on the first anniversary of the date of grant so long as the director continues to serve on our Board. All options granted to directors have an exercise price equal to the fair market value of our common stock on the date of grant and remain exercisable for a period of up to ten years, subject to continuous service on our Board. As of September 30, 2021, $0.2 million of total unrecognized compensation expense related to non-vested stock options is expected to be recognized over a weighted average remaining period of 2.2 years. Restricted Stock Unit Activity During the first three months of fiscal 2022, we granted 51,100 non-performance based restricted stock units ("RSUs"), with a weighted average grant date fair value of $20.71. The RSUs granted to employees entitle the holder to receive the underlying shares of common stock as the unit vests over the relevant vesting period. The RSUs do not entitle the holder to receive dividends declared on the underlying shares while the RSUs remain unvested and vest in four equal annual installments on the anniversary of the date of grant. We granted 38,000 RSUs during the first three months of fiscal 2021, with a weighted average grant date fair value of $9.58. During the first quarter of fiscal 2022, 19,000 RSUs vested. These awards were previously granted in August 2020. As of September 30, 2021, a total of 100,100 RSUs were outstanding at a weighted average grant date fair value of $15.12. Total unrecognized compensation expense related to non-vested restricted stock units as of September 30, 2021, was $1.4 million, and is expected to be recognized over a weighted average remaining period of 3.3 years. Performance Stock Unit Activity Payout of performance stock unit (“PSU”) grants depend on the attainment of certain financial and shareholder-return goals over a specific performance period, which is generally three fiscal years. The number of awards that will vest, as well as unearned and canceled awards, depend on the achievement of certain financial and shareholder-return goals over the three-year performance periods, and will be settled in shares if service conditions are met, requiring employees to remain employed with us through the end of the three-year performance periods. During the first three months of fiscal 2022 we granted 90,367 PSUs with a weighted average grant date fair value of $17.15 compared with 117,338 RSUs at a weighted average grant date fair value of $8.76 in the prior year first quarter. We estimate, as of the date of grant, the fair value of PSUs with a discounted cash flow model, using as model inputs the risk-free rate of return as the discount rate, dividend yield for dividends not paid during the restriction period, and a discount for lack of marketability for a one-year post-vest holding period. The lack of marketability discount used is the present value of a future put option using the Chaffe model. During the first quarter of fiscal 2022, 35,124 PSUs, that were previously granted in July 2018, vested. As of September 30, 2021, a total of 419,752 PSUs were outstanding at a weighted average grant date fair value of $16.22. Our unrecognized compensation expense as of September 30, 2021, related to PSUs, was $1.8 million based on the current estimates of the number of awards that will vest, and is expected to be recognized over a weighted average remaining period of 2.3 years.

X
- Definition The entire disclosure for share-based payment arrangement. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 718 -URI http://asc.fasb.org/topic&trid=2228938 + Details
Name: | us-gaap_DisclosureOfCompensationRelatedCostsShareBasedPaymentsTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- References No definition available. + Details
Name: | us-gaap_DisclosureTextBlockAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration