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Stock-Based Compensation | 12 Months Ended
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Jun. 30, 2018
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] |
Stock-Based Compensation | Stock-Based Compensation Total stock-based compensation expense for the fiscal years ended June 30, 2018, June 30, 2017, and June 30, 2016 was $8.6 million, $7.5 million and $6.3 million, respectively. Measured but unrecognized stock-based compensation expense at June 30, 2018 was $12.9 million, all of which related to nonvested deferred shares which are expected to be recognized as expense over a weighted average period of 1.7 years. The Company recognized excess tax expense of $0.5 million related to stock-based compensation vesting for the fiscal year ended June 30, 2018 and recognized excess tax benefits of $0.5 million and $3.2 million for the fiscal years ended June 30, 2017 and June 30, 2016, respectively. Plan Information In November 2016, the Company's stockholders approved the Matrix Service Company 2016 Stock and Incentive Compensation Plan (the "2016 Plan"), which provides stock-based and cash-based incentives for officers, directors and other key employees. Stock options, restricted stock, restricted stock units, stock appreciation rights, performance shares and cash-based awards can be issued under this plan. Upon approval of the 2016 Plan, the 2012 Stock and Incentive Compensation Plan ("2012 Plan") was frozen with the exception of normal vesting and other activity associated with awards previously granted under the 2012 Plan. However, shares awarded under the 2012 Plan that are subsequently forfeited or net settled for tax withholding purposes are returned to the treasury share pool and become available for grant under the 2016 Plan. The 2012 Plan was preceded by the 2004 Stock Incentive Plan ("2004 Plan"), which was frozen upon approval of the 2012 Plan with the exception of normal vesting, forfeiture and other activity associated with awards previously granted under the 2004 Plan. Awards totaling 1,800,000 shares have been authorized under the 2016 Plan. At June 30, 2018 there were 1,145,949 shares available for grant under the 2016 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 years 2018, 2017, or 2016. Stock option activity and related information for the fiscal year ended June 30, 2018 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, 2017 |  | 97,250 |  |  | 4.4 |  | $ | 10.19 |  |  | $ | — |
Granted |  | — |  |  |  |  | — |  |  |
Exercised |  | (31,050 | ) |  |  |  | $ | 10.19 |  |  | $ | 287 |
Canceled |  | — |  |  |  |  | — |  |  |
Outstanding at June 30, 2018 |  | 66,200 |  |  | 3.4 |  | $ | 10.19 |  |  | $ | 540 |
Vested at June 30, 2018 |  | 66,200 |  |  | 3.4 |  | $ | 10.19 |  |  | $ | 540 |
Exercisable at June 30, 2018 |  | 66,200 |  |  | 3.4 |  | $ | 10.19 |  |  | $ | 540 |
The total intrinsic value of stock options exercised during fiscal 2017 and 2016 was $0.3 million and $0.7 million, respectively. 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 equal annual installments beginning one year after the grant date. Director awards vest one year after the grant date.
• | Market-based awards—These awards are in the form of performance units which vest 3 years after the grant date only if the Company’s common stock achieves certain levels of total shareholder return 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 can range from zero to 200% of the original award depending on the Company's relative total shareholder return during the performance period. These awards are settled in stock. As of June 30, 2018, there are approximately 183,000, and 275,000 performance units that are scheduled to vest in fiscal 2020, and fiscal 2021, respectively, assuming target performance. There were approximately 127,000 performance units that were scheduled to vest in fiscal 2019 at target performance, but total shareholder return during the performance period did not meet the threshold performance and the performance units were forfeited.
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 stock options is determined based on the Black-Scholes option pricing model. The grant date fair value of the market-based awards is calculated using a Monte Carlo model. For the fiscal 2018 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 of the peer companies over the performance period. Nonvested deferred share activity for the fiscal year ended June 30, 2018 is as follows:
|  | Shares |  | Weighted Average Grant Date Fair Value per Share
Nonvested shares at June 30, 2017 |  | 995,353 |  |  | $ | 21.65 |
Shares granted |  | 715,539 |  |  | $ | 13.64 |
Shares vested and released |  | (253,241 | ) |  | $ | 19.60 |
Shares canceled |  | (91,604 | ) |  | $ | 31.42 |
Nonvested shares at June 30, 2018 |  | 1,366,047 |  |  | $ | 17.18 |
There were 516,969 and 370,490 deferred shares granted in fiscal 2017 and 2016 with average grant date fair values of $19.80 and $20.77, respectively. There were 396,530 and 631,443 deferred shares that vested and were released in fiscal 2017 and 2016 with weighted average fair values of $18.24 and $22.34 per share, respectively.

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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://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 718 -URI http://asc.fasb.org/topic&trid=2228938 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 505 -SubTopic 50 -URI http://asc.fasb.org/subtopic&trid=2208855 + Details
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