XML 26 R12.htm IDEA: XBRL DOCUMENT v2.4.0.6
SHARE-BASED PAYMENTS
 6 Months Ended
Mar. 31, 2012
SHARE-BASED PAYMENTS  
SHARE-BASED PAYMENTS

3.                                    SHARE-BASED PAYMENTS

 

The Company’s share-based compensation expense (benefit) and related income tax effects are as follows:

 

 

 

Three months ended

 

 

Six months ended

 

 

 

March 31,

 

 

March 31,

 

 

 

 

 

2012

 

 

 

2011

 

 

 

2012

 

 

 

2011

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Share-based compensation expense (benefit)

 

 

 

$

227,000

 

 

 

$

1,677,000

 

 

 

$

(68,000

)

 

 

$

1,917,000

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income tax effect

 

 

 

$

-

 

 

 

$

-

 

 

 

$

-

 

 

 

$

-

 

 

Share-based compensation expense (benefit) recognized in losses for the three and six months ended March 31, 2012 and 2011 are reflected in “General and administrative” expenses in the Condensed Consolidated Statements of Operations.  There was no impact on income taxes for the three and six months ended March 31, 2012 and 2011 due to a full valuation allowance on the related deferred tax asset.

 

Equity-classified Awards

 

A summary of the activity in Barnwell’s equity-classified share options from October 1, 2011 through March 31, 2012 is presented below:

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted-

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Average

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted-

 

 

 

Remaining

 

 

 

 

 

 

 

 

 

 

 

 

 

Average

 

 

 

Contractual

 

 

 

Aggregate

 

 

 

 

 

 

 

 

 

Exercise

 

 

 

Term

 

 

 

Intrinsic

 

Options

 

 

 

Shares

 

 

 

Price

 

 

 

(in years)

 

 

 

Value

 

Outstanding at October 1, 2011

 

 

 

60,000

 

 

 

 

$

 8.62

 

 

 

 

 

 

 

 

 

Granted

 

 

 

-

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Exercised

 

 

 

-

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Expired /Forfeited

 

 

 

-

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Outstanding at March 31, 2012

 

 

 

60,000

 

 

 

 

$

 8.62

 

 

 

 

2.7

 

 

 

$

-

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Exercisable at March 31, 2012

 

 

 

60,000

 

 

 

 

$

 8.62

 

 

 

 

2.7

 

 

 

$

-

 

 

There was no share-based compensation expense for equity-classified awards in the three and six months ended March 31, 2012 and 2011.

 

Liability-classified Awards

 

As of March 31, 2012, there was $101,000 of total unrecognized compensation cost related to nonvested liability-classified share options.  That cost is expected to be recognized over 1.7 years.

 

The following assumptions were used in estimating fair value for all liability-classified share options outstanding:

 

 

 

Six months ended March 31,

 

 

 

2012

 

2011

 

 

 

 

 

 

 

Expected volatility range

 

59.2% to 64.5%

 

53.6% to 73.0%

 

Weighted-average volatility

 

61.1%

 

62.5%

 

Expected dividends

 

0.0%

 

0.0%

 

Expected term (in years)

 

2.7 to 7.7

 

0.2 to 8.7

 

Risk-free interest rate

 

0.4% to 1.6%

 

0.1% to 3.2%

 

Expected forfeitures

 

None

 

None

 

 

The application of alternative assumptions could produce significantly different estimates of the fair value of share-based compensation, and consequently, the related costs reported in the Condensed Consolidated Statements of Operations.

 

A summary of the activity in Barnwell’s liability-classified share options from October 1, 2011 through March 31, 2012 is presented below:

 

 

 

 

 

 

 

Weighted-

 

 

 

 

 

 

 

 

Average

 

 

 

 

 

 

Weighted-

 

Remaining

 

 

 

 

 

 

Average

 

Contractual

 

Aggregate

 

 

 

 

Exercise

 

Term

 

Intrinsic

Options

 

 

Shares

 

 

Price

 

(in years)

 

Value

Outstanding at October 1, 2011

 

 

755,375

 

 

 

$

8.40

 

 

 

 

 

 

 

 

 

Granted

 

 

  -

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Exercised

 

 

  -

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Expired/Forfeited

 

 

  -

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Outstanding at March 31, 2012

 

 

755,375

 

 

 

$

8.40

 

 

 

5.9

 

 

 

$       -

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Exercisable at March 31, 2012

 

 

537,875

 

 

 

$

9.34

 

 

 

5.4

 

 

 

$       -

 

 

The following table summarizes the components of the total share-based compensation for liability-classified awards:

 

 

 

Three months ended

 

Six months ended

 

 

March 31,

 

March 31,

 

 

2012

 

2011

 

2012

 

2011

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Due to vesting

 

 

$

25,000

 

 

 

$

142,000

 

 

 

$

67,000

 

 

 

$

359,000

 

Due to remeasurement

 

 

202,000

 

 

 

1,535,000

 

 

 

(135,000

)

 

 

1,558,000

 

Total share-based compensation expense (benefit) for liability-based awards

 

 

$

227,000

 

 

 

$

1,677,000

 

 

 

$

(68,000

)

 

 

$

1,917,000

 

 

No liability-classified options were exercised during the three and six months ended March 31, 2012.  In the three and six months ended March 31, 2011, the cash feature of 39,375 shares of non-qualified options were exercised.  The total intrinsic value of the liability-classified options exercised during the three and six months ended March 31, 2011 was $118,000.  There was no estimated tax benefit related to the options exercised during the three and six months ended March 31, 2011 due to a full valuation allowance on the related deferred tax asset.