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STOCK-BASED COMPENSATION | 12 Months Ended
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Jun. 30, 2020
Share-based Payment Arrangement [Abstract] |
STOCK-BASED COMPENSATION | STOCK-BASED COMPENSATIONThe Company grants long-term equity-based awards under the 2018 Long Term Incentive Plan (the 2018 Plan). The 2018 Plan, which was approved by the Company's shareholders at its 2018 Annual Meeting, provides for the granting of nonqualified stock options, equity-based stock appreciation rights (SARs), RSAs, RSUs and PSUs, as well as cash-based performance grants, to employees and non-employee directors of the Company. Under the 2018 Plan, a maximum of 3,818,895 shares are approved for issuance. The 2018 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 2.0 times higher than appreciation awards (such as SARs and stock options). As of June 30, 2020, a maximum of 3,774,266 shares were available for grant under the 2018 Plan. All unvested awards are subject to forfeiture in event of termination of employment, unless accelerated. SAR and RSU awards granted under the 2018 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 15 years of continuous service. The Company also has outstanding awards under the 2016 Long Term Incentive Plan (the 2016 Plan), although the 2016 Plan terminated in October 2018 and no additional awards have since been or will be made under the 2016 Plan. The 2016 Plan provided for the granting of SARs, RSAs, RSUs and PSUs, as well as cash-based performance grants, to employees and non-employee directors of the Company. 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, SARs, RSAs, RSUs and PSUs, as well as cash-based performance grants, to employees and non-employee directors of the Company. Under the 2018 Plan, 2016 Plan and the 2004 Plan, stock-based awards are granted at an exercise price or initial value equal to the fair market value on the date of grant. There were no SARs granted in fiscal year 2020. 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 2020, 2019 and 2018 were as follows:
|  | Fiscal Years |  |  |  |
|  | 2020 |  | 2019 |  | 2018
RSUs (1) |  | $ | 16.48 |  |  | $ | 21.12 |  |  | $ | 13.43 |
PSUs (1) |  | 12.09 |  |  | 14.05 |  |  | 15.74 |
_______________________________________________________________________________ (1)The fair value of market-based RSUs and PSUs granted are estimated on the date of grant using a Monte Carlo valuation model. The significant assumptions used in determining the estimated fair value of the market-based awards granted during fiscal years 2020, 2019 and 2018 were as follows:
|  | Fiscal Years |  |  |  |
|  | 2020 |  | 2019 |  | 2018
Risk-free interest rate |  | 1.43 | % |  | 2.31 - 2.68% |  | 1.66 - 2.59%
Expected volatility |  | 33.9 | % |  | 34.2 - 34.6% |  | 33.4 - 37.1%
Expected dividend yield |  | — | % |  | — | % |  | — | %
The risk free interest rate is determined based on the U.S. Treasury rates approximating the expected life of the market-based RSUs and PSUs granted. Expected volatility is established based on historical volatility of the Company's stock price. The Company uses historical data to estimate pre-vesting forfeiture rates. Stock-based compensation expense was as follows:
|  | Fiscal Years |  |  |  |
|  | 2020 |  | 2019 |  | 2018
|  | (Dollars in thousands) |  |  |  |
SARs |  | $ | — |  |  | $ | 1,497 |  |  | $ | 2,252 |
RSAs, RSUs, & PSUs |  | 3,275 |  |  | 7,506 |  |  | 6,017 |
Total stock-based compensation expense (recorded in G&A) |  | 3,275 |  |  | 9,003 |  |  | 8,269 |
Less: Income tax benefit (1) |  | (688) |  |  | (1,891) |  |  | (1,736) |
Total stock-based compensation expense, net of tax |  | $ | 2,587 |  |  | $ | 7,112 |  |  | $ | 6,533 |
_______________________________________________________________________________ (1)Federal statutory income tax rate of 21% utilized in fiscal years 2020, 2019 and 2018. The Company recorded a stock compensation benefit of $1.6 million in fiscal year 2020 related to performance awards that did not meet the vesting requirements. Stock Appreciation Rights & Stock Options: SARs and stock options granted under the 2018 Plan, 2016 Plan and the 2004 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 vested in full after two years. Activity for all the Company's 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, 2019 |  | 1,321 |  |  | 10 |  |  | $ | 11.97 |  |  |  |  |
Granted |  | — |  |  | — |  |  | — |  |  |  |  |
Forfeited/Expired |  | (36) |  |  | (9) |  |  | 16.69 |  |  |  |  |
Exercised |  | — |  |  | (1) |  |  | 18.61 |  |  |  |  |
Outstanding balance at June 30, 2020 |  | 1,285 |  |  | — |  |  | $ | 11.79 |  |  | 6.08 |  | $ | (4,639) |
Exercisable at June 30, 2020 |  | 1,285 |  |  | — |  |  | $ | 11.79 |  |  | 6.08 |  | $ | (4,639) |
Unvested awards, net of estimated forfeitures |  | — |  |  | — |  |  | $ | — |  |  | — |  |  | $ | — |
Restricted Stock Units: RSUs granted to employees under the 2018 Plan, 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. RSUs granted to non-employee directors under the 2018 Plan, 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 the Company's RSUs is as follows:
|  | Shares/Units (in thousands) |  | Weighted Average Grant Date Fair Value |  | Aggregate Intrinsic Value (in thousands)
|  | RSUs |  |  |  |
Outstanding balance at June 30, 2019 |  | 850 |  |  | $ | 16.42 |  |  |
Granted |  | 257 |  |  | 16.48 |  |  |
Forfeited |  | (166) |  |  | 17.29 |  |  |
Vested |  | (235) |  |  | 11.88 |  |  |
Outstanding balance at June 30, 2020 |  | 706 |  |  | $ | 17.72 |  |  | $ | 5,775 |
Vested at June 30, 2020 |  | 263 |  |  | $ | 15.94 |  |  | $ | 2,151 |
Unvested awards, net of estimated forfeitures |  | 381 |  |  | $ | 18.68 |  |  | $ | 3,117 |
As of June 30, 2020, there was $3.8 million of unrecognized expense related to RSUs that is expected to be recognized over a weighted-average period of 1.75 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 the Company's 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, 2019 |  | 980 |  |  | $ | 14.10 |  |  |
Granted |  | 74 |  |  | 12.09 |  |  |
Forfeited |  | (165) |  |  | 14.57 |  |  |
Vested |  | (179) |  |  | 12.93 |  |  |
Outstanding balance at June 30, 2020 |  | 710 |  |  | $ | 13.90 |  |  | $ | 5,808 |
Vested at June 30, 2020 |  | — |  |  | $ | — |  |  | $ | — |
Unvested awards, net of estimated forfeitures |  | 396 |  |  | $ | 13.34 |  |  | $ | 3,239 |
_______________________________________________________________________________ (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 $0.8 million during fiscal year 2018. PSUs granted in fiscal year 2020 have a performance period of three years, after which they will vest to the extent earned. There was $0.3 million of total unrecognized compensation expense related to the unvested awards to be recognized over 2.2 years. PSUs granted in fiscal year 2019 have a performance period of three years, after which they will vest to the extent earned. There was $3.3 million of total unrecognized compensation expense related to the unvested awards to be recognized over 1.2 years. PSUs granted in fiscal year 2018 have a performance period of three years, ending June 30, 2020. As of June 30, 2020, these awards have not been earned and will not vest to the extent earned. As a result, the Company recorded a benefit of $1.6 million in fiscal year 2020.

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- Definition The entire disclosure for share-based payment arrangement. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 718 -URI http://asc.fasb.org/topic&trid=2228938 + Details
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