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Employee Stock Compensation | 9 Months Ended
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Oct. 31, 2012
Disclosure Of Compensation Related Costs, Share-Based Payments [Abstract] |
Disclosure of Compensation Related Costs, Share-based Payments [Text Block] |
8. | Employee Stock Compensation
Shares of our common stock may currently be awarded under our 2012 stock incentive plan and a nonemployee director option plan. Upon the approval of the 2012 plan by stockholders of the Company in June 2012, the ability to make grants under the 2009 restricted stock plan was terminated. The 2012 plan has the structure and includes all of the components described below:
|  | Nature and terms
Restricted Stock Plan - employees |  | Long-term incentive compensation-three-year plan. Employees are granted potential share awards at the beginning of the three-year cycle at baseline and maximum amounts. The level of award and final vesting is based on the Board of Director’s opinion as to the performance of the Company and management in the entire three year cycle. All vesting is three-year “cliff” vesting - there is no partial vesting. The valuation is based on the stock price at the grant date and amortized to expense over the three-year period.
Restricted Stock Plan – Directors |  | Long-term incentive compensation-three-year plan. Directors are granted potential share awards at the beginning of the three-year cycle at baseline and maximum amounts. The level of award and final vesting is based on the Board of Director’s opinion as to the performance of the Company and management in the entire three-year cycle. All vesting is three-year “cliff” vesting-there is no partial vesting. The valuation is based on the stock price at the grant date and amortized to expense over the three-year period.
Matching award program |  | All participating employees are eligible to receive one share of restricted stock awarded for each two shares of Lakeland stock purchased on the open market. Such restricted shares are subject to three-year time vesting. The valuation is based on the stock price at the grant date and amortized to expense over the three-year period.
Bonus in stock program - employees |  | All participating employees are eligible to elect to receive any cash bonus in shares of restricted stock. Such restricted shares are subject to two-year time vesting. The valuation is based on the stock price at the grant date and amortized to expense over the two-year period. Since the employee is giving up cash for unvested shares, the amount of shares awarded is 133% of the cash amount based on the grant date stock price.
Director fee in stock program |  | All directors are eligible to elect to receive any director fees in shares of restricted stock. Such restricted shares are subject to two- year time vesting. The valuation is based on the stock price at the grant date and amortized to expense over the two-year period. Since the director is giving up cash for unvested shares, the amount of shares awarded is 133% of the cash amount based on the grant date stock price.
Non-employee director stock option plan |  | The plan provides for an automatic one-time grant of options to purchase 5,000 shares of common stock to each nonemployee director newly elected or appointed. Options are granted at not less than fair market value, become exercisable commencing six months from the date of grant and expire six years from the date of grant. In addition, all nonemployee directors re-elected to the Company’s Board of Directors at any annual meeting of the stockholders will automatically be granted additional options to purchase 1,000 shares of common stock on that date.
Equity Incentive Plans On June 17, 2009, the stockholders of the Company authorized the issuance of 253,000 shares under a restricted stock plan (the “2009 Equity Incentive Plan”). Under the 2009 Equity Incentive Plan, eligible employees and directors were eligible to be awarded performance-based restricted shares of the company common stock. The amount recorded as expense for the performance-based grants of restricted stock are based upon an estimate made at the end of each reporting period as to the most probable outcome of this plan at the end of the three-year performance period (e.g., baseline, maximum or zero). In addition to the grants with vesting based solely on performance, certain awards pursuant to the plan have a time-based vesting requirement, under which awards vest from two to three years after grant issuance, subject to continuous employment and certain other conditions. Restricted stock has no voting rights until fully vested and issued, and the underlying shares are not considered to be issued and outstanding until vested. Under the 2009 Equity Incentive Plan, the Company has issued 104,989 fully vested shares as of October 31, 2012. The Company has granted up to a maximum of 35,989 restricted stock awards as of October 31, 2012. All of these restricted stock awards are nonvested at October 31, 2012 and have a weighted average grant date fair value of $8.36. The Company recognizes expense related to performance-based awards over the requisite service period using the straight-line attribution method based on the outcome that is probable. On June 20, 2012, the stockholders of the Company authorized 310,000 shares under the Company’s 2012 Stock Incentive Plan the (“2012 Equity Incentive Plan”). Under the 2012 Incentive Plan, eligible employees and directors may be awarded restricted stock, restricted stock units, performance shares, performance units and other share-based awards. The amount recorded as expense for the performance-based grants of restricted stock are based upon an estimate made at the end of each reporting period as to the most probable outcome of this plan at the end of the three-year performance period (e.g., baseline, maximum or zero). In addition to the grants with vesting based solely on performance, certain awards pursuant to the plan have a time-based vesting requirement, under which awards vest from two to three years after grant issuance, subject to continuous employment and certain other conditions. Restricted stock has no voting rights until fully vested and issued, and the underlying shares are not considered to be issued and outstanding until vested. Under the 2012 Equity Incentive Plan, the Company has granted 222,621 restricted stock awards as of October 31, 2012, assuming all maximum awards are achieved. All of these restricted stock awards are nonvested at October 31, 2012 (161,121 shares at “baseline”), and have a weighted average grant date fair value of $6.43. The Company recognizes expense related to performance-based awards over the requisite service period using the straight-line attribution method based on the outcome that is probable. As of October 31, 2012, unrecognized stock-based compensation expense related to restricted stock awards totaled $51,437 pursuant to the 2009 Equity Incentive Plan and $1,261,762 pursuant to the 2012 Equity Incentive Plan, before income taxes, based on the maximum performance award level, less what has been charged to expense on a cumulative basis through October 31, 2012, which was set at baseline. Such unrecognized stock-based compensation expense related to restricted stock awards totaled $51,437 for the 2009 Equity Incentive Plan and $865,702 for the 2012 Equity Incentive Plan at the baseline performance level. The cost of these nonvested awards is expected to be recognized over a weighted-average period of three years. The Board has estimated its current performance level to be at the baseline level, and expenses have been recorded accordingly. The performance based awards are not considered stock equivalents for earnings per share (“EPS”) calculation purposes. The following table represents our stock options granted, exercised and forfeited during the nine-months ended October 31, 2012.
Stock Options |  | Number of Shares |  |  | Weighted Average Exercise Price per Share |  |  | Weighted Average Remaining Contractual Term |  |  | Aggregate Intrinsic Value |
Outstanding at January 31, 2012 |  |  | 18,200 |  |  | $ | 7.31 |  |  |  | 3.38 years |  |  | $ | 10,230 |
Granted during the nine months ended October 31, 2012 |  |  | 10,000 |  |  | $ | 6.44 |  |  |  | 5.66 years |  |  | $ | 100 |
Forfeited during the nine months ended October 31, 2012 |  |  | 4,200 |  |  | $ | 10.67 |  |  |  | — |  |  |  | — |
Outstanding at October 31, 2012 |  |  | 24,000 |  |  | $ | 7.47 |  |  |  | 4.20 years |  |  | $ | 1,300 |
Exercisable at October 31, 2012 |  |  | 24,000 |  |  | $ | 7.47 |  |  |  | 4.20 years |  |  | $ | 1,300 |
Reserved for future issuance: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Directors’ Plan |  |  | 21,300 |  |  |  |  |  |  |  |  |  |  |  |  |
There were no exercises during the nine-months ended October 31, 2012. Stock-Based Compensation The Company recognized total stock-based compensation costs of $349,530 and $499,493 for the nine-months ended October 31, 2012 and 2011, respectively, of which $0 and $4,253 result from the 2006 Equity Plan, $124,342 and $476,692 result from the 2009 Equity Incentive Plan, $204,663 and $0 result from the 2012 Equity Incentive Plan and $20,525 and $18,548, from the Directors Option Plan, for the nine-months ended October 31, 2012 and 2011, respectively. These amounts are reflected in selling, general and administrative expenses. The total income tax benefit recognized for stock-based compensation arrangements was $127,578 and $182,315 for the nine-months ended October 31, 2012 and 2011, respectively.
Shares under 2009 Plan |  | Outstanding unvested grants at maximum at beginning of FY13 |  |  | Granted during FY13 through October 31, 2012 |  |  | Becoming Vested during FY13 through October 31, 2012 |  |  | Forfeited during FY13 through October 31, 2012 |  |  | Outstanding unvested grants at maximum at October 31, 2012 |
Restricted stock grants - employees |  |  | 129,536 |  |  |  | — |  |  |  | 79,313 |  |  |  | 50,223 |  |  |  | — |
Restricted stock grants - directors |  |  | 63,184 |  |  |  | — |  |  |  | 45,232 |  |  |  | 17,952 |  |  |  | — |
Matching award program |  |  | 3,500 |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 3,500 |
Bonus in stock - employees |  |  | 25,801 |  |  |  | 3,289 |  |  |  | 3,000 |  |  |  | — |  |  |  | 26,090 |
Retainer in stock - directors |  |  | 5,572 |  |  |  | 1,116 |  |  |  | — |  |  |  | — |  |  |  | 6,688 |
Total restricted stock plan |  |  | 227,593 |  |  |  | 4,405 |  |  |  | 127,545 |  |  |  | 68,175 |  |  |  | 36,278 |
Weighted average grant date fair value |  | $ | 8.04 |  |  | $ | 8.82 |  |  | $ | 8.03 |  |  | $ | 8.00 |  |  | $ | 8.27 |
Shares under 2012 Plan |  | Outstanding unvested grants at maximum at beginning of FY13 |  |  | Granted during FY13 through October 31, 2012 |  |  | Becoming Vested during FY13 through October 31, 2012 |  |  | Forfeited during FY13 through October 31, 2012 |  |  | Outstanding unvested grants at maximum at October 31, 2013 |
Restricted stock grants - employees |  |  | — |  |  |  | 164,500 |  |  |  | — |  |  |  | — |  |  |  | 164,500 |
Restricted stock grants - directors |  |  | — |  |  |  | 49,500 |  |  |  | — |  |  |  | — |  |  |  | 49,500 |
Matching award program |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |
Bonus in stock – employees |  |  | — |  |  |  | 4,331 |  |  |  | — |  |  |  | — |  |  |  | 4,331 |
Retainer in stock – directors |  |  | — |  |  |  | 4,290 |  |  |  | — |  |  |  | — |  |  |  | 4,290 |
Total restricted stock plan |  |  | — |  |  |  | 222,621 |  |  |  | — |  |  |  | — |  |  |  | 222,621 |
Weighted average grant date fair value |  |  | — |  |  | $ | 6.43 |  |  |  | — |  |  |  | — |  |  | $ | 6.43

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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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