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EQUITY-BASED INCENTIVE AWARDS: | 12 Months Ended
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Sep. 30, 2013
EQUITY-BASED INCENTIVE AWARDS: |
EQUITY-BASED INCENTIVE AWARDS: | 13. EQUITY-BASED INCENTIVE AWARDS: Omnibus Plan The Company has an Omnibus Incentive Plan ("the Omnibus Plan") which provides for equity incentives to employees. The Omnibus Plan was designed with the intent of encouraging employees to acquire a vested interest in the growth and performance of the Company. The Omnibus Plan permits the issuance of up to 150,000 shares of the Company's common stock in the form of stock options, restricted stock awards, restricted stock units, performance share awards as well as awards such as stock appreciation rights, performance units, performance shares, bonus shares, and dividend share awards payable in the form of common stock or cash. The number of shares issuable under the Omnibus Plan is subject to customary adjustments in the event of stock splits, stock dividends, and certain other distributions on the Company's common stock. At September 2013, awards with respect to a total of 130,726 shares, net of forfeitures, had been awarded pursuant to the Omnibus Plan and awards with respect to another 19,274 shares may be awarded under the plan. Stock Options The Company issued 8,000 and 6,500 incentive stock options to various employees pursuant to the provisions of the Company's Omnibus Plan during fiscal 2013 and fiscal 2012, respectively. These awards vest over service periods ranging from three to five years and had an estimated fair value at the time of award of approximately $0.1 million in both fiscal 2013 and fiscal 2012 using the Black-Scholes option pricing model. The following assumptions were used in connection with the Black-Scholes option pricing calculation:
|  | Stock Option Pricing Assumptions |
--- | --- | --- | ---
|  | 2013 |  | 2012 |
Risk-free interest rate |  |  | 1.46 | % |  | 2.39 | %
Dividend yield |  |  | 1.10 | % |  | 1.10 | %
Expected volatility |  |  | 25.00 | % |  | 27.90 | %
Expected life in years |  |  | 6 |  |  | 6 |
The stock options issued by the Company expire ten years from the grant date and include graded vesting schedules ranging between three and five years. Stock options issued and outstanding at September 2013 are summarized as follows:
|  |  |  |  |  |  |  |  |  | Exercisable |
--- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | ---
|  | Exercise Price |  | Number Outstanding |  | Remaining Weighted-Average Contractual Life |  | Weighted-Average Exercise Price |  | Number Exercisable |  | Weighted-Average Exercise Price |
Fiscal 2007 |  | $18.00 |  |  | 25,000 |  | 3.20 years |  | $ | 18.00 |  |  | 25,000 |  | $ | 18.00 |
Fiscal 2010 |  | $51.50 |  |  | 5,500 |  | 6.58 years |  | $ | 51.50 |  |  | 3,300 |  | $ | 51.50 |
Fiscal 2012 |  | $53.80 - $65.97 |  |  | 6,500 |  | 8.09 years |  | $ | 54.74 |  |  | 1,300 |  | $ | 54.74 |
Fiscal 2013 |  | $62.33 |  |  | 8,000 |  | 9.07 years |  | $ | 62.33 |  |  | — |  | $ | — |
|  |  |  |  | 45,000 |  |  |  | $ | 35.28 |  |  | 29,600 |  | $ | 23.35 |
The following is a summary of stock option activity during fiscal 2013:
|  | Number of Shares |  | Weighted Average Exercise Price |
--- | --- | --- | --- | --- | ---
Outstanding at September 2012 |  |  | 37,042 |  | $ | 29.43 |
Granted |  |  | 8,000 |  |  | 62.33 |
Exercised |  |  | (42 | ) |  | 28.80 |
Forfeited/Expired |  |  | — |  |  | — |
Outstanding at September 2013 |  |  | 45,000 |  | $ | 35.28 |
Net income before income taxes included compensation expense related to the amortization of the Company's stock option awards of $0.1 million during fiscal 2013 and less than $0.1 million in fiscal 2012. At September 2013, total unamortized compensation expense related to stock options was approximately $0.2 million. This unamortized compensation expense is expected to be amortized over approximately the next 36 months. The aggregate intrinsic value of stock options outstanding was approximately $2.1 million and $1.3 million at September 2013 and September 2012, respectively. The aggregate intrinsic value of stock options exercisable was approximately $1.7 million and $1.2 million at September 2013 and September 2012, respectively. The total intrinsic value of stock options was less than $0.1 million in both fiscal 2013 and fiscal 2012. The total fair value of stock options vested during fiscal 2013 and fiscal 2012 was $0.2 million and $0.1 million, respectively. Restricted Stock Units At September 2013, the Compensation Committee of the Board of Directors had authorized and approved the following restricted stock unit awards to members of the Company's management team pursuant to the provisions of the Company's Omnibus Plan:
|  | Restricted Stock Units(1) |  | Restricted Stock Units(2) |  | Restricted Stock Units(3)
--- | --- | --- | --- | --- | --- | ---
Date of award: |  | November 22, 2010 |  | October 26, 2011 |  | October 23, 2012
Original number of awards issued: |  | 12,000 |  | 15,900 |  | 15,000
Service period: |  | 36 months |  | 36 months |  | 36 months
Estimated fair value of award at grant date: |  | $864,000 |  | $855,000 |  | $935,000
Awards outstanding at September 2013 |  | 4,000 |  | 10,600 |  | 15,000
Fair value of non-vested awards at September 2013: |  | $328,000 |  | $868,000 |  | $1,228,000
(1) 8,000 of the restricted stock unit awards were vested as of September 2013. The remaining 4,000 restricted stock units will vest on November 22, 2013. (2) 5,300 of the restricted stock units were vested as of September 2013. The remaining 10,600 restricted stock units will vest in equal amounts on October 25, 2013 and October 25, 2014. (3) The 15,000 restricted stock units will vest in equal amounts on October 23, 2013, October 23, 2014 and October 23, 2015. There is no direct cost to the recipients of the restricted stock units, except for any applicable taxes. The recipients of the restricted stock units are entitled to the customary adjustments in the event of stock splits, stock dividends, and certain other distributions on the Company's common stock. All cash dividends and/or distributions payable to restricted stock recipients will be held in escrow until all the conditions of vesting have been met. The restricted stock units provide that the recipients can elect, at their option, to receive either common stock in the Company, or a cash settlement based upon the closing price of the Company's shares, at the time of vesting. Based on these award provisions, the compensation expense recorded in the Company's Condensed Statement of Operations reflects the straight-line amortized fair value based on the period end closing price. Net income before income taxes included compensation expense related to the amortization of the Company's restricted stock unit awards of approximately $1.2 million and $1.4 million during fiscal 2013 and fiscal 2012, respectively. The tax benefit related to this compensation expense was approximately $0.5 million in both fiscal 2013 and 2012, respectively. The total intrinsic value of restricted stock units vested during fiscal 2013 and fiscal 2012 was approximately $1.4 million and $1.0 million, respectively. Total unamortized compensation expense for these awards based on the September 2013 closing price was approximately $1.3 million. This unamortized compensation expense, plus any changes in the fair value of the awards through the settlement date, are expected to be amortized over approximately the next 19 months (the weighted-average period). The following summarizes restricted stock unit activity under the Omnibus Plan during fiscal 2013:
|  | Number of Shares |  | Weighted Average Fair Value |
--- | --- | --- | --- | --- | ---
Nonvested restricted stock units at September 2012 |  |  | 36,700 |  | $ | 65.00 |
Granted |  |  | 15,000 |  | $ | 62.33 |
Vested |  |  | (22,100 | ) | $ | 62.86 |
Expired |  |  | — |  | $ | — |
Nonvested restricted stock units at September 2013 |  |  | 29,600 |  | $ | 81.89 |

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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 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 Accounting Standards Codification -Topic 718 -SubTopic 40 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=6418621&loc=d3e17540-113929 Reference 5: 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 6: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Staff Accounting Bulletin (SAB) -Number Topic 14 + Details
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