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Stock Based Compensation And Incentive Performance Plans | 12 Months Ended
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Jun. 30, 2014
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] |
Stock Based Compensation And Incentive Performance Plans | STOCK BASED COMPENSATION AND INCENTIVE PERFORMANCE PLANS The Company has two shareholder-approved plans, the Amended and Restated 2002 Long-Term Incentive and Stock Award Plan and the 2000 Directors Stock Plan, under which the Company’s officers, senior management, other key employees, consultants and directors may be granted options to purchase the Company’s common stock or other forms of equity-based awards. 2002 Long-Term Incentive and Stock Award Plan, as amended. In November 2002, our stockholders approved the 2002 Long-Term Incentive and Stock Award Plan. An aggregate of 1,600,000 shares of common stock were originally reserved for issuance under this plan. At various Annual Meetings of Stockholders, including the 2013 Annual Meeting, the plan was amended to increase the number of shares issuable to 14,000,000 shares. The plan provides for the granting of stock options, stock appreciation rights, restricted stock, restricted share units, performance shares, performance share units and other equity awards to employees, directors and consultants. Awards denominated in shares of common stock other than options and stock appreciation rights will be counted against the available share limit as 2.07 shares for every one share covered by such award. All of the options granted to date under the plan have been incentive or non-qualified stock options providing for the exercise price equal to the fair market price at the date of grant. Effective December 1, 2005, stock option awards granted under the plan expire 7 years after the date of grant; options granted prior to this date expired 10 years after the date of grant. Options and other stock-based awards vest in accordance with provisions set forth in the applicable award agreements. No awards shall be granted under this plan after November 19, 2023. There were no options granted under this plan in fiscal years 2014, 2013 or 2012. There were 193,880, 645,127 and 258,923 shares of restricted stock and restricted share units granted under this plan during fiscal years 2014, 2013 and 2012, respectively. Included in these grants during fiscal years 2014, 2013 and 2012 were 176,560, 613,600 and 150,699, respectively, of restricted stock and restricted share units granted under the Company’s long-term incentive programs, of which 37,340, 449,016 and 75,361, respectively, are subject to the achievement of minimum performance goals established under those programs (see “Long-term Incentive Plan,” below) or market conditions. At June 30, 2014, 1,253,673 options and 594,543 unvested restricted stock and restricted share units were outstanding under this plan and there were 5,093,742 shares available for grant under this plan. 2000 Directors Stock Plan, as amended. In May 2000, our stockholders approved the 2000 Directors Stock Plan. The plan originally provided for the granting of stock options to non-employee directors to purchase up to an aggregate of 750,000 shares of our common stock. In December 2003, the plan was amended to increase the number of shares issuable to 950,000 shares. In March 2009, the plan was amended to permit the granting of restricted stock, restricted share units and dividend equivalents and was renamed. All of the options granted to date under this plan have been non-qualified stock options providing for the exercise price equal to the fair market price at the date of grant. Effective December 1, 2005, stock option awards granted under the plan expire 7 years after the date of grant; options granted prior to this date expire 10 years after the date of grant. No awards shall be granted under this plan after December 1, 2015. There were no options granted under this plan in fiscal years 2014, 2013, or 2012. There were 14,000, 24,750, and 40,000 shares of restricted stock granted under this plan during fiscal years 2014, 2013 and 2012, respectively. At June 30, 2014, 22,500 options and 34,829 unvested restricted shares were outstanding and there were 12,045 shares available for grant under this plan. At June 30, 2014 there were also 60,972 options outstanding that were granted under the prior Celestial Seasonings plan. Although no further awards can be granted under those plans, the options outstanding continue in accordance with the terms of the respective plans and grants. There were 7,072,304 shares of Common Stock reserved for future issuance in connection with stock based awards as of June 30, 2014. Compensation cost and related income tax benefits recognized in the Consolidated Statements of Income for stock based compensation plans were as follows:
| Fiscal Year ended June 30,
| 2014 |  | 2013 |  | 2012
Compensation cost (included in selling, general and administrative expense) | $ | 12,448 |  |  | $ | 13,010 |  |  | $ | 8,290 |
Related income tax benefit | $ | 4,787 |  |  | $ | 4,969 |  |  | $ | 3,019 |
Stock Options A summary of our stock option activity for the three fiscal years ended June 30, 2014 is as follows:
| 2014 | Weighted Average Exercise Price |  | 2013 | Weighted Average Exercise Price |  | 2012 | Weighted Average Exercise Price
Outstanding at beginning of year | 1,778,752 |  | $18.88 |  | 2,580,433 |  | $18.00 |  | 3,497,752 |  | $17.35
Exercised | (441,307 | ) | $16.59 |  | (795,281 | ) | $16.05 |  | (914,119 | ) | $15.51
Canceled and expired | (300 | ) | $16.01 |  | (6,400 | ) | $14.87 |  | (3,200 | ) | $16.11
Outstanding at end of year | 1,337,145 |  | $19.65 |  | 1,778,752 |  | $18.88 |  | 2,580,433 |  | $18.00
Options exercisable at end of year | 1,337,145 |  | $19.65 |  | 1,735,427 |  | $18.90 |  | 2,289,642 |  | $18.55
| Fiscal Year ended June 30,
| 2014 |  | 2013 |  | 2012
Intrinsic value of options exercised | $ | 29,778 |  |  | $ | 39,562 |  |  | $ | 23,798 |
Cash received from stock option exercises | $ | 7,320 |  |  | $ | 12,763 |  |  | $ | 14,179 |
Tax benefit recognized from stock option exercises | $ | 11,584 |  |  | $ | 14,468 |  |  | $ | 8,811 |
For options outstanding and exercisable at June 30, 2014, the aggregate intrinsic value (the difference between the closing stock price on the last day of trading in the year and the exercise price) was $92,380 and the weighted average remaining contractual life was 2.1 years. At June 30, 2014 there was no unrecognized compensation expense related to stock option awards. Restricted Stock Awards of restricted stock may be either grants of restricted stock or restricted share units that are issued at no cost to the recipient. For restricted stock grants, at the date of grant the recipient has all rights of a stockholder, subject to certain restrictions on transferability and a risk of forfeiture. For restricted share units, legal ownership of the shares is not transferred to the employee until the unit vests. Restricted stock and restricted share unit grants vest in accordance with provisions set forth in the applicable award agreements, which may include performance criteria for certain grants. The compensation cost of these awards is determined using the fair market value of the Company’s common stock on the date of the grant. Compensation expense for restricted stock awards with a service condition is recognized on a straight-line basis over the vesting term. Compensation expense for restricted stock awards with a performance condition is recorded when the achievement of the performance criteria is probable and is recognized over the performance and vesting service periods. A summary of our restricted stock and restricted share units activity for the three fiscal years ended June 30, 2014 is as follows:
| 2014 |  | Weighted Average Grant Date Fair Value (per share) |  | 2013 |  | Weighted Average Grant Date Fair Value (per share) |  | 2012 |  | Weighted Average Grant Date Fair Value (per share)
Non-vested restricted stock and restricted share units – beginning of year | 773,568 |  |  | $42.44 |  | 487,409 |  |  | $29.94 |  | 407,231 |  |  | $22.43
Granted | 112,396 |  |  | $82.77 |  | 561,532 |  |  | $45.60 |  | 235,824 |  |  | $35.47
Vested | (238,145 | ) |  | $38.17 |  | (265,819 | ) |  | $26.23 |  | (136,031 | ) |  | $17.51
Forfeited | (18,447 | ) |  | $57.44 |  | (9,554 | ) |  | $38.73 |  | (19,615 | ) |  | $26.71
Non-vested restricted stock and restricted share units – end of year | 629,372 |  |  | $50.87 |  | 773,568 |  |  | $42.44 |  | 487,409 |  |  | $29.94
| Fiscal Year ended June 30,
| 2014 |  | 2013 |  | 2012
Fair value of restricted stock and restricted share units granted | $ | 9,303 |  |  | $ | 25,606 |  |  | $ | 8,364 |
Fair value of shares vested | $ | 19,905 |  |  | $ | 16,547 |  |  | $ | 5,098 |
Tax benefit recognized from restricted shares vesting | $ | 7,535 |  |  | $ | 6,253 |  |  | $ | 1,914 |
On July 3, 2012, the Company entered into a Restricted Stock Agreement (the “Agreement”) with Irwin D. Simon, the Company’s Chairman, President and Chief Executive Officer. The Agreement provides for a grant of 400,000 shares of restricted stock (the “Shares”), the vesting of which is both market and time-based. The market condition is satisfied in increments of 100,000 Shares upon the Company’s common stock achieving four share price targets. On the last day of any forty-five (45) consecutive trading day period during which the average closing price of the Company’s common stock on the NASDAQ Global Select Market equals or exceeds the following prices: $62.50, $72.50, $82.50 and $100.00, respectively, the market condition for each increment of 100,000 Shares will be satisfied. The market conditions must be satisfied prior to June 30, 2017. Once each market condition has been satisfied, a tranche of 100,000 Shares will vest in equal amounts annually over a five-year period. Except in the case of a change of control, termination without cause, death or disability (each as defined in Mr. Simon’s Employment Agreement), the unvested Shares are subject to forfeiture unless Mr. Simon remains employed through the applicable market and time vesting periods. The grant date fair value for each tranche was separately estimated based on a Monte Carlo simulation that calculated the likelihood of goal attainment and the time frame most likely for goal attainment. The total grant date fair value of the Shares was estimated to be $16,151, which was expected to be recognized over a weighted-average period of approximately 4.0 years. On September 28, 2012, August 27, 2013, and December 13, 2013, the first, second, and third market conditions, respectively, were satisfied. As such, the first three tranches of 100,000 Shares are expected to vest in equal amounts over the five-year period commencing on the first anniversary of the date the market condition for the respective tranche was satisfied. At June 30, 2014, $16,042 of unrecognized stock-based compensation expense, net of estimated forfeitures, related to non-vested restricted stock awards, inclusive of the Shares, is expected to be recognized over a weighted-average period of approximately 2.2 years. Long-Term Incentive Plan The Company maintains a long-term incentive program (the “LTI Plan”). The LTI Plan currently consists of two two-year performance-based long-term incentive plans (the “2013-2014 LTIP” and the “2014-2015 LTIP”) that provide for a combination of equity grants and performance awards that can be earned over each two year period. Participants in the LTI Plan include our executive officers, including the Chief Executive Officer, and certain other key executives. The Compensation Committee administers the LTI Plan and is responsible for, among other items, establishing the target values of awards to participants and selecting the specific performance factors for such awards. Following the end of each performance period, the Compensation Committee determines, at its sole discretion, the specific payout to each participant. Such awards may be paid in cash and/or unrestricted shares of the Company’s common stock at the discretion of the Compensation Committee, provided that any such stock-based awards shall be issued pursuant to and be subject to the terms and conditions of the Amended and Restated 2002 Long-Term Incentive and Stock Award Plan, as in effect and as amended from time to time. Upon the adoption of the 2013-2014 LTIP and the 2014-2015 LTIP, the Compensation Committee granted an initial award to each participant in the form of equity-based instruments (restricted stock or restricted share units), for a portion of the individual target awards (the “Initial Equity Grants”). These Initial Equity Grants are subject to time vesting requirements and a portion are also subject to the achievement of minimum performance goals. The Initial Equity Grants are expensed over the respective vesting periods on a straight-line basis. The payment of the actual awards earned at the end of the applicable performance period, if any, will be reduced by the value of the Initial Equity Grants. The Compensation Committee determined that the target values set under the LTI Plan covering the 2012 and 2013 fiscal years (the “2012-2013 LTIP”) were achieved and approved the payment of awards to the participants. After deducting the value of the Initial Equity Grants, the awards related to the 2012-2013 LTIP totaled $7,356 (which were settled by the issuance of 95,484 unrestricted shares of the Company’s common stock in the first quarter of fiscal 2014). The Company has recorded expense (in addition to the stock based compensation expense associated with the Initial Equity Grants) of $9,495, $7,460 and $8,743 for the fiscal years ended June 30, 2014, 2013 and 2012 respectively, related to LTI plans.

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- Definition Tabular disclosure of components of a stock option or other award plan under which equity-based compensation is awarded to employees, typically comprised of the amount of unearned compensation (deferred compensation cost), compensation expense, and changes in the quantity and fair value of the shares (or other type of equity) granted, exercised, forfeited, and issued and outstanding pertaining to that plan. Disclosure may also include nature and general terms of such arrangements that existed during the period and potential effects of those arrangements on shareholders, effect of compensation cost arising from equity-based payment arrangements on the income statement, method of estimating the fair value of the goods or services received, or the fair value of the equity instruments granted, during the period, cash flow effects resulting from equity-based payment arrangements and, for registrants that accelerate vesting of out of the money share options, reasons for the decision to accelerate. + 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 + Details
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