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STOCK-BASED COMPENSATION | 12 Months Ended
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Jun. 30, 2017
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] |
STOCK-BASED COMPENSATION | The Company grants long-term equity-based awards under the 2016 Long Term Incentive Plan (the 2016 Plan). The 2016 Plan, which was approved by the Company's shareholders at its 2016 Annual Meeting, 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 units (PSUs), as well as cash-based performance grants, to employees and non-employee directors of the Company. Under the 2016 Plan, a maximum of 3,500,000 shares were approved for issuance. The 2016 Plan incorporates a fungible share design, under which full value awards (such as RSUs and PSUs) count against the shares reserved for issuance at a rate 2.4 times higher than appreciation awards (such as SARs and stock options). As of June 30, 2017, a maximum of 4,324,855 shares were available for grant under the 2016 Plan. All unvested awards are subject to forfeiture in event of termination of employment, unless accelerated. SAR and RSU awards granted under the 2016 Plan generally include various acceleration terms, including upon retirement 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 awards under the Amended and Restated 2004 Long Term Incentive Plan (the "2004 Plan"), although the 2004 Plan terminated in October 2016 and no additional awards have since been or will be made under the 2004 Plan. The 2004 Plan provided 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. The Company also has outstanding stock options under the 2000 Stock Option Plan (the "2000 Plan"), although the 2000 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 2016 Plan, 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 2017, 2016 and 2015 were as follows:
|  | 2017 |  | 2016 |  | 2015
SARs |  | $ | 3.68 |  |  | $ | 3.51 |  |  | $ | 6.16 |
RSAs & RSUs |  | 11.73 |  |  | 11.18 |  |  | 15.95 |
PSUs |  | 12.28 |  |  | 12.11 |  |  | 15.15 |
The fair value of SARs granted are estimated on the date of grant using the Black-Scholes-Merton (BSM) option valuation model. The significant assumptions used in determining the estimated fair value of SARs granted during fiscal years 2017, 2016 and 2015 were as follows:
|  | 2017 |  | 2016 |  | 2015
Risk-free interest rate |  | 1.99% |  | 1.71% |  | 1.53 - 1.84%
Expected term (in years) |  | 6.50 |  | 6.00 |  | 6.00
Expected volatility |  | 31.50% |  | 30.00% |  | 38.00 - 44.00%
Expected dividend yield |  | 0% |  | 0% |  | 0%
The risk free interest rate is determined based on the U.S. Treasury rates approximating the expected life of the 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 awards 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 recorded in G&A was as follows:
|  | 2017 |  | 2016 |  | 2015
SARs |  | $ | 3,533 |  |  | $ | 2,774 |  |  | $ | 2,652 |
RSAs, RSUs, & PSUs |  | 9,609 |  |  | 7,023 |  |  | 5,995 |
Total stock-based compensation expense |  | $ | 13,142 |  |  | $ | 9,797 |  |  | $ | 8,647 |
Total compensation cost for stock-based payment arrangements for fiscal year 2017 includes $5.4 million related to the termination of former executive officers. Stock Appreciation Rights & Stock Options: SARs and stock options granted under the 2016 Plan, 2004 Plan and 2000 Plan generally vest ratably over a three to five year 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 April 2017 grant to the Chief Executive Officer, which vests in full after two years. 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, 2016 |  | 2,209 |  |  | 98 |  |  | $ | 16.39 |  |  |  |  |
Granted |  | 1,000 |  |  | — |  |  | 11.15 |  |  |  |  |  |
Forfeited/Expired |  | (243 | ) |  | (44 | ) |  | 19.33 |  |  |  |  |  |
Exercised |  | (82 | ) |  | — |  |  | 10.84 |  |  |  |  |  |
Outstanding balance at June 30, 2017 |  | 2,884 |  |  | 54 |  |  | $ | 14.47 |  |  | 7.3 |  | $ | — |
Exercisable at June 30, 2017 |  | 1,571 |  |  | 54 |  |  | $ | 17.06 |  |  | 5.7 |  | $ | — |
Unvested awards, net of estimated forfeitures |  | 1,294 |  |  | — |  |  | $ | 11.26 |  |  | 9.4 |  | $ | — |
As of June 30, 2017, there was $3.7 million of unrecognized expense related to SARs and stock options that is to be recognized over a weighted-average period of 1.7 years. Restricted Stock Awards & Restricted Stock Units: RSAs and RSUs granted to employees under the 2016 Plan and 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 Chief Executive Officer has an outstanding RSU grant that vests upon the achievement of a specified value for the Company's stock over a specified period of time. RSUs granted to non-employee directors under the 2016 Plan and 2004 Plan generally vest in equal monthly amounts over a one year period from the Company's previous annual shareholder meeting date and distributions 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, 2016 |  | 122 |  |  | 908 |  |  | $ | 14.91 |  |  |
Granted |  | — |  |  | 517 |  |  | 11.73 |  |  |
Forfeited |  | — |  |  | (82 | ) |  | 13.78 |  |  |
Vested |  | (121 | ) |  | (534 | ) |  | 14.91 |  |  |
Outstanding balance at June 30, 2017 |  | 1 |  |  | 809 |  |  | $ | 12.77 |  |  | $ | 8,326 |
Vested at June 30, 2017 |  | 1 |  |  | 203 |  |  | $ | 14.69 |  |  | $ | 2,103 |
Unvested awards, net of estimated forfeitures |  | — |  |  | 565 |  |  | $ | 12.07 |  |  | $ | 5,802 |
As of June 30, 2017, there was $3.7 million of unrecognized expense related to RSAs and RSUs that is expected to be recognized over a weighted-average period of 1.8 years. Performance Share Units: PSUs are grants of restricted stock units which are earned based on the achievement of performance goals established by the Compensation Committee over a performance period. 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, 2016 |  | 556 |  |  | $ | 13.00 |  |  | $ | 7,679 |
Granted |  | 393 |  |  | 12.28 |  |  |  |
Forfeited |  | (508 | ) |  | 12.68 |  |  |  |
Vested |  | — |  |  | — |  |  |  |
Outstanding balance at June 30, 2017 |  | 441 |  |  | $ | 12.74 |  |  | $ | 4,531 |
Vested at June 30, 2017 |  | — |  |  | $ | — |  |  | $ | — |
Unvested awards, net of estimated forfeitures |  | 412 |  |  | $ | 12.74 |  |  | $ | 4,230 |
_______________________________________________________________________________
(1) | Includes actual or expected payout rates as set forth in the performance criteria.
In connection with the termination of former executive officers, the Company settled certain PSUs for cash of $3.2 million during fiscal year 2017. PSUs granted in fiscal year 2017 have a performance period of three years, after which they will vest to the extent earned. Future compensation expense for these unvested awards could reach a maximum of $2.8 million to be recognized over 2.1 years, if the maximum performance metrics are achieved. PSUs granted in fiscal years 2016 and 2015 had a performance period of one year. They have been earned and will vest three years from the initial grant date. As of June 30, 2017, there was $0.6 million of expense related to the fiscal 2016 and 2015 PSUs that is expected to be recognized over a weighted-average period of 1.0 year.

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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=65895303&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=68057994&loc=d3e25284-112666 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 718 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SAB Topic 14) -URI http://asc.fasb.org/extlink&oid=27013229&loc=d3e301413-122809 Reference 4: 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 5: 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 6: 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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