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STOCK-BASED COMPENSATION | 12 Months Ended
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Jun. 30, 2015
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] |
STOCK-BASED COMPENSATION | The Company grants long-term equity-based awards under the Amended and Restated 2004 Long Term Incentive Plan (the "2004 Plan"). The 2004 Plan provides for the granting of nonqualified stock options, equity-based stock appreciation rights (SARs), restricted stock awards (RSAs), restricted stock units (RSUs) and stock-settled performance share units (PSUs), as well as cash-based performance grants, to employees and non-employee directors of the Company. Under the 2004 Plan, a maximum of 6,750,000 shares were approved for issuance. In October 2013, the 2004 Plan was amended to limit the aggregate RSAs, RSUs and PSUs that are available for grant to 3,465,701. As of June 30, 2015, a maximum of 2,465,276 shares of RSAs, RSUs and PSUs were available for grant under the 2004 Plan. All unvested awards are subject to forfeiture in the event of termination of employment, unless accelerated. SAR and RSU awards granted subsequent to July 1, 2012 generally include various acceleration terms for participants aged sixty-two years or older or who are aged fifty-five or older and have fifteen years of continuous service. The Company also has outstanding stock options under the 2000 Stock Option Plan (the "2000 Plan"), although the plan terminated in 2010 and no additional awards have since been or will be made under the 2000 Plan. The 2000 Plan allowed the Company to grant both incentive and nonqualified stock options and replaced the Company's 1991 Stock Option Plan. Under the 2004 Plan and the 2000 Plan, stock-based awards are granted at an exercise price or initial value equal to the fair market value on the date of grant. Using the fair value of each grant on the date of grant, the weighted average fair values per stock-based compensation award granted during fiscal years 2015, 2014 and 2013 were as follows:
|  | 2015 |  | 2014 |  | 2013
Stock options & SARs |  | $ | 6.16 |  |  | $ | 6.00 |  |  | $ | 6.63 |
RSAs & RSUs |  | 15.95 |  |  | 15.50 |  |  | 17.40 |
PSUs |  | 15.15 |  |  | 15.73 |  |  | 18.33 |
The fair value of stock options and SARs granted prior to June 30, 2013 was estimated on the date of grant using a lattice option valuation model. Effective July 1, 2013, the Company changed from the lattice option valuation model to the Black-Scholes-Merton (BSM) option valuation model for valuing SARs. The Company elected to make the change in valuation methodology because the Company's historical grants of SARs lacked complex vesting conditions or maximum payout limitations on the value of the awards. The Company does not expect a material difference in future valuations as a result of the change in models. The fair value of market-based RSUs granted during fiscal year 2013 was estimated on the date of grant using a Monte Carlo simulation model. The significant assumptions used in determining the estimated fair value of stock options, SARs and market-based RSUs granted during fiscal years 2015, 2014 and 2013 were as follows:
|  | 2015 |  | 2014 |  | 2013
Risk-free interest rate |  | 1.53 - 1.84% |  | 1.67 - 1.96% |  | 0.66 - 0.87%
Expected term (in years) |  | 6.00 |  | 6.00 |  | 6.00
Expected volatility |  | 38.00 - 44.00% |  | 44.00% |  | 44.00 - 47.00%
Expected dividend yield |  | 0% |  | 1.52 - 1.61% |  | 1.33 - 1.46%
The risk free rate of return is determined based on the U.S. Treasury rates approximating the expected life of the stock options and SARs granted. Expected volatility is established based on historical volatility of the Company's stock price. Estimated expected life was based on an analysis of historical stock options granted data which included analyzing grant activity including grants exercised, expired and canceled. The expected dividend yield is determined based on the Company's annual dividend amount as a percentage of the strike price at the time of the grant. The Company uses historical data to estimate pre-vesting forfeiture rates. Stock-based compensation expense was as follows:
|  | 2015 |  | 2014 |  | 2013
SARs & stock options |  | $ | 2,652 |  |  | $ | 2,145 |  |  | $ | 1,986 |
RSAs, RSUs, & PSUs |  | 5,995 |  |  | 4,255 |  |  | 3,895 |
Total stock-based compensation expense within General and Administrative expense |  | 8,647 |  |  | 6,400 |  |  | 5,881 |
Less: Income tax benefit(1) |  | — |  |  | — |  |  | (2,235 | )
Total stock-based compensation expense, net of tax |  | $ | 8,647 |  |  | $ | 6,400 |  |  | $ | 3,646 |
_______________________________________________________________________________
(1) | During fiscal year 2014, the Company recorded a valuation allowance against the majority of its deferred tax assets. Any subsequent stock-based compensation expense was not tax effected.
Stock Appreciation Rights & Stock Options: SARs and stock options granted under the 2004 Plan and 2000 Plan generally vest ratably over a three to five years period on each of the annual grant date anniversaries and expire ten years from the grant date. SARs granted subsequent to fiscal year 2012 vest ratably over a three year period with the exception of the January 2015 grant which vests entirely after five years and expires seven years from the grant date. Activity for all of our outstanding SARs and stock options is as follows:
|  | Shares (in thousands) |  | Weighted Average Exercise Price |  | Weighted- Average Remaining Contractual Life |  | Aggregate Intrinsic Value (in thousands)
|  | SARs |  | Stock Options |  |  |
Outstanding balance at June 30, 2014 |  | 1,140 |  |  | 252 |  |  | $ | 20.80 |  |  |  |  |  |
Granted |  | 814 |  |  | — |  |  | 15.99 |  |  |  |  |  |
Forfeited/Expired |  | (189 | ) |  | (73 | ) |  | 24.26 |  |  |  |  |  |
Exercised |  | (10 | ) |  | — |  |  | 15.66 |  |  |  |  |  |
Outstanding balance at June 30, 2015 |  | 1,755 |  |  | 179 |  |  | $ | 19.16 |  |  | 6.9 |  | 287 |
Exercisable at June 30, 2015 |  | 609 |  |  | 179 |  |  | $ | 21.62 |  |  | 5.5 |  | 19 |
Unvested awards, net of estimated forfeitures |  | 1,069 |  |  | — |  |  | $ | 17.59 |  |  | 7.9 |  | 245 |
The total cash proceeds and income tax benefit associated with the exercise of SARs and stock options during fiscal years 2015, 2014 and 2013 were immaterial. As of June 30, 2015, there was $4.2 million of unrecognized expense related to SARs and stock options that is to be recognized over a weighted-average period of 2.9 years. Restricted Stock Awards & Restricted Stock Units: RSAs and RSUs granted to employees under the 2004 Plan generally vest ratably over a three to five year period on each of the annual grant date anniversaries or vest entirely after a three or five year period. In addition, the Company has an outstanding RSU August 2012 grant to its Chief Executive Officer that vests upon the achievement of a specified value for the Company's stock over a specified period of time. The January 2015 grant to the Chief Executive Officer vests entirely after five years. RSUs granted to non-employee directors under the 2004 Plan generally vest in equal monthly amounts over a one year period from the Company's previous annual shareholder meeting date. Distributions on vested RSUs granted to non-employee directors are deferred until the director's board service ends. Activity for all of our RSAs and RSUs is as follows:
|  | Shares/Units (in thousands) |  | Weighted Average Grant Date Fair Value |  | Aggregate Intrinsic Value (in thousands)
|  | RSAs |  | RSUs |  |
Outstanding balance at June 30, 2014 |  | 186 |  |  | 512 |  |  | $ | 16.34 |  |  |  |
Granted |  | — |  |  | 478 |  |  | 15.95 |  |  |  |
Forfeited |  | (19 | ) |  | (72 | ) |  | 15.42 |  |  |  |
Vested |  | (34 | ) |  | (109 | ) |  | 16.32 |  |  |  |
Outstanding balance at June 30, 2015 |  | 133 |  |  | 809 |  |  | $ | 15.86 |  |  | $ | 14,830 |
Vested at June 30, 2015 |  | — |  |  | 129 |  |  | $ | 16.10 |  |  | $ | 2,029 |
Unvested awards, net of estimated forfeitures |  | 132 |  |  | 639 |  |  | $ | 16.31 |  |  | $ | 12,149 |
As of June 30, 2015, there was $7.8 million of unrecognized expense related to RSAs and RSUs that is expected to be recognized over a weighted-average period of 2.8 years. Performance Share Units: PSUs represent shares potentially issuable in the future. Issuance is based upon the relative achievement of the Company's performance goals related to the Company achieving specified levels of same-store sales and earnings before interest, taxes, depreciation and amortization, adjusted ("adjusted EBITDA"). The fiscal year 2015 PSUs vest after three years from the grant date upon achievement of the performance criteria. Activity for all of our PSUs is as follows:
|  | Shares/Units (in thousands) |  | Weighted Average Grant Date Fair Value |  | Aggregate Intrinsic Value (in thousands)(1)
|  | PSUs |  |
Outstanding balance at June 30, 2014 |  | 307 |  |  | $ | 15.73 |  |  |  |
Granted |  | 199 |  |  | 15.15 |  |  |  |
Forfeited |  | (207 | ) |  | 14.09 |  |  |  |
Vested |  | — |  |  | — |  |  |  |
Outstanding balance at June 30, 2015 |  | 299 |  |  | $ | 15.28 |  |  | $ | 5,020 |
Vested at June 30, 2015 |  | — |  |  | $ | — |  |  | $ | — |
Unvested awards, net of estimated forfeitures |  | 179 |  |  | $ | 15.15 |  |  | $ | 4,656 |
_______________________________________________________________________________
(1) | Includes actual or expected payout rates as set forth in the performance criteria.
During fiscal year 2015, the Company granted PSUs which were earned over the fiscal year 2015 performance period. As of June 30, 2015, there was $2.5 million of unrecognized expense related to the fiscal year 2015 PSU shares granted that is expected to be recognized over a weighted-average period of 2.2 years. During fiscal year 2014, the Company granted certain PSUs which were not earned during the one year performance period. Other PSUs granted during fiscal year 2014 had a performance period of three years. As of June 30, 2015, the Company did not expect the three year performance period PSUs to be earned. Future compensation expense for these unvested awards could reach a maximum of $1.7 million to be recognized over 1.2 years, if the target performance metrics are earned.

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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 40 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=6418621&loc=d3e17540-113929 Reference 2: 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=51659978&loc=d3e25284-112666 Reference 3: 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 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 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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