Quarterly report pursuant to Section 13 or 15(d)

Share-Based Compensation

v2.4.0.8
Share-Based Compensation
9 Months Ended
Jun. 30, 2014
Share-Based Compensation.  
Share-Based Compensation

11.       Share-Based Compensation

 

 

 

Three Months Ended

 

Nine Months Ended

 

 

 

June 30,

 

June 30,

 

 

 

2014

 

2013

 

2014

 

2013

 

 

 

 

 

 

 

 

 

 

 

Share-based compensation costs (income)

 

$

1.1

 

$

(1.0

)

$

6.2

 

$

5.0

 

Less impact of income tax benefit (expense)

 

0.4

 

(0.4

)

2.3

 

1.8

 

Share-based compensation costs (income),net of tax

 

$

0.7

 

$

(0.6

)

$

3.9

 

$

3.2

 

 

Share-based compensation related to our long-term performance-based stock awards is contingent upon the creation of shareholder value as measured by the cumulative cash returns and final period net operating profit after tax compared to the performance-based targets for each grant over a three-year period.  For certain performance based awards, compensation expense is adjusted each quarter based upon actual results to date and any changes to forecasted information on each of the separate grants.  The share-based compensation income recognized during the three months ended June 30, 2013 was driven by these adjustments.

 

During the nine months ended June 30, 2014, we made the following grants:

 

 

 

Number of
Units

 

Stock options

 

455,922

 

Time-based stock awards

 

60,154

 

Performance-based stock awards (maximum that can be earned)

 

582,391

 

 

Stock options granted had a weighted-average exercise price of $28.18 and a weighted-average grant date fair value of $6.97.  Our time-based stock awards and performance-based stock awards had a weighted-average grant date fair value of $29.30 and $28.56.  Included in the performance-based stock awards granted during 2014 are 187,847 units whose payout level is based upon the Company’s total shareholder return as it relates to the performance of companies in its compensation peer group over a three-year measurement period.  These units will be expensed on a straight-line basis over the measurement period and are not subsequently adjusted after the grant date.

 

During the nine months ended June 30, 2014, we increased the shares issuable under the stock compensation plans by approximately 3,900,000.