XML 143 R19.htm IDEA: XBRL DOCUMENT
v2.4.0.8

Stock-Based Compensation | 12 Months Ended
--- | ---
Jun. 30, 2013
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] |
Stock-Based Compensation | Stock-Based Compensation Total stock-based compensation expense for the twelve months ended June 30, 2013, June 30, 2012, and June 30, 2011 was $3.8 million, $3.5 million and $2.4 million, respectively. Measured but unrecognized stock-based compensation expense at June 30, 2013 was $9.1 million, of which $8.5 million related to nonvested deferred shares and $0.6 million related to stock options. These amounts are expected to be recognized as expense over a weighted average period of 1.9 years. The recognized tax benefit related to the stock-based compensation expense for the 12 months ended June 30, 2013, June 30, 2012 and June 30, 2011 totaled $1.6 million, $1.3 million and $0.9 million, respectively. Plan Information Matrix Service Company's 2012 Stock and Incentive Compensation Plan ("2012 Plan") provides stock-based and cash-based incentives for officers, other key employees and directors. Stock options, restricted stock, restricted stock units, stock appreciation rights and performance shares can be issued under this plan. All future grants of stock awards will be made through the 2012 Plan. Upon approval of the 2012 Plan by the Company's stockholders, the 2004 Stock Incentive Plan ("2004 Plan") was frozen with the exception of normal vesting, forfeiture and other activity associated with awards previously granted under the 2004 Plan. Awards totaling 2,300,000 shares and 1,300,000 shares have been authorized under the 2004 and 2012 Plans, respectively. At June 30, 2013, there were approximately 1,078,000 shares available for grant under the 2012 Plan. Stock Options Stock options are granted at the market value of the Company’s common stock on the grant date and expire after 10 years. The Company’s policy is to issue shares upon the exercise of stock options from its treasury shares, if available. The Company did not award any new stock options in fiscal 2013. Stock option activity and related information for the year ended June 30, 2013 is as follows:
|  | Number of Options |  | Weighted-Average Remaining Contractual Life |  | Weighted-Average Exercise Price |  | Aggregate Intrinsic Value
|  |  |  | (Years) |  |  |  | (In thousands)
Outstanding at June 30, 2012 |  | 491,040 |  |  | 5.5 |  | $ | 9.29 |  |  |
Granted |  | — |  |  |  |  | $ | — |  |  |
Exercised |  | (97,840 | ) |  |  |  | $ | 8.94 |  |  | $ | 616 |
Cancelled |  | (1,200 | ) |  |  |  | $ | 10.19 |  |  |
Outstanding at June 30, 2013 |  | 392,000 |  |  | 5.5 |  | $ | 9.38 |  |  | $ | 2,430 |
Vested or expected to vest at June 30, 2013 |  | 387,703 |  |  | 5.4 |  | $ | 9.37 |  |  | $ | 2,409 |
Exercisable at June 30, 2013 |  | 167,800 |  |  | 1.5 |  | $ | 8.29 |  |  | $ | 1,223 |
The Company uses the Black-Scholes option pricing model to estimate grant date fair value for each stock option granted. Expected volatility is based on the historic volatility of the Company’s stock. The risk-free rate is based on the applicable United States Treasury Note rate. The expected life of the option is based on historical and expected future exercise behavior. Assumptions used to calculate the fiscal 2012 grant date fair value and the fair value calculated was as follows:
| 2012
Grant date fair value | $5.61
Risk-free interest rate | 0.88%
Expected volatility | 66.19%
Expected life in years | 5.00
Expected dividend yield | —
The total intrinsic value of stock options exercised during fiscal 2013, 2012, and 2011 was $0.6 million, $0.1 million and $0.2 million, respectively. The following table summarizes information about stock options at June 30, 2013:
|  | Stock Options Outstanding |  | Stock Options Exercisable
Range of Exercise Price |  | Options Outstanding |  | Weighted- Average Exercise Price |  | Weighted- Average Remaining Contractual Life |  | Options Exercisable |  | Weighted- Average Exercise Price |  | Weighted- Average Remaining Contractual Life
|  |  |  |  |  | (Years) |  |  |  |  |  | (Years)
$4.60 – $ 5.49 |  | 65,700 |  |  | $ | 4.83 |  |  | 1.5 |  | 65,700 |  |  | $ | 4.83 |  |  | 1.5
8.93 – 12.20 |  | 326,300 |  |  | 10.29 |  |  | 6.2 |  | 102,100 |  |  | 10.52 |  |  | 1.5
$4.60 – $12.20 |  | 392,000 |  |  | $ | 9.38 |  |  | 5.5 |  | 167,800 |  |  | $ | 8.29 |  |  | 1.5
Nonvested Deferred Shares The Company has issued nonvested deferred shares under the following types of arrangements:
• | Time based awards—Employee awards generally vest in four or five year equal annual installments beginning one year after the grant date. Director awards cliff vest on the earlier of three years or upon retirement from the Board.
• | Market based awards—These awards are in the form of perfomance units which vest 3 years after the grant date only if the Company’s common stock achieves certain levels when compared to the total shareholder return of a peer group of companies as selected by the Compensation Committee of the Board of Directors. The payout is pro-rated and can range from zero to 200% of the original award. These awards are settled entirely in stock. As of June 30, 2013, there are approximately 228,000 performance units that are scheduled to vest in fiscal 2016.
All awards vest upon the death or disability of the participant or upon a change of control of the Company. The grant date fair value of the time based awards is determined by the market value of the Company's common stock on the grant date. The grant date fair value of the market based awards is calculated using a Monte Carlo model. For the fiscal 2013 grant, the model estimated the fair value of the award based on approximately 100,000 simulations of the future prices of the Company's common stock compared to the future prices of the common stock of its peer companies based on historical volatilities. The model also took into account the expected dividends over the performance period. Nonvested deferred share activity for the twelve months ended June 30, 2013 is as follows:
|  | Shares |  | Weighted Average Grant Date Fair Value per Share
Nonvested shares at June 30, 2012 |  | 970,994 |  |  | $ | 10.75 |
Shares granted |  | 503,268 |  |  | $ | 10.96 |
Shares vested and released |  | (367,449 | ) |  | $ | 11.15 |
Shares cancelled |  | (76,153 | ) |  | $ | 9.24 |
Nonvested shares at June 30, 2013 |  | 1,030,660 |  |  | $ | 10.71 |
There were 364,600 and 405,500 deferred shares granted in fiscal 2012 and 2011 with average grant date fair values of $9.99 and $10.57, respectively. There were 367,449, 184,149 and 126,428 deferred shares that vested and were released in fiscal 2013, 2012 and 2011 with weighted average fair values of $10.69, $10.23 and $9.52 per share, respectively.

X
- Details
Name: | us-gaap_DisclosureOfCompensationRelatedCostsSharebasedPaymentsAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- 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 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 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 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 5: 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 6: 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 Reference 7: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Staff Accounting Bulletin (SAB) -Number Topic 14 Reference 8: 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. + Details
Name: | us-gaap_DisclosureOfCompensationRelatedCostsShareBasedPaymentsTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration