Note 10 - Equity-Based Compensation

12 Months Ended

Jun. 30, 2013

Disclosure of Compensation Related Costs, Share-based Payments [Abstract]

Disclosure of Compensation Related Costs, Share-based Payments [Text Block]

(10) Equity-Based Compensation

The Company applies the fair-value recognition provisions of equity-based payment accounting. This requires the Company to measure the cost of employee services received in exchange for equity awards based on the grant-date fair value of the awards. The cost is recognized as compensation expense on a straight-line basis over the requisite service period of the awards.

Total equity-based compensation expense recognized for the years ended June 30, 2013, 2012, and 2011, shown separately by operating expense category, is as follows for the years ended:

	June 30, 2013
(amounts in thousands)	Stock option program		Restricted stock program		Total equity-based compensation
Cost of sales	$	-	$	886	$	886
Marketing		-		249		249
Research and development		-		392		392
General and administrative		-		2,257		2,257
Total cost of equity-based compensation	$	-	$	3,784	$	3,784
Amount of related income tax benefit recognized in income	$	-	$	1,362	$	1,362

	June 30, 2012
(amounts in thousands)	Stock option program		Restricted stock program		Total equity-based compensation
Cost of sales	$	-	$	814	$	814
Marketing		-		245		245
Research and development		-		409		409
General and administrative		-		2,385		2,385
Total cost of equity-based compensation	$	-	$	3,853	$	3,853
Amount of related income tax benefit recognized in income	$	-	$	1,387	$	1,387

	June 30, 2011
(amounts in thousands)	Stock option program		Restricted stock program		Total equity-based compensation
Cost of sales	$	130	$	611	$	741
Marketing		40		172		212
Research and development		95		448		543
General and administrative		172		2,429		2,601
Total cost of equity-based compensation		437	$	3,660	$	4,097
Amount of related income tax benefit recognized in income	$	157	$	1,318	$	1,475

Stock Based Compensation Plans

The Anaren, Inc. 2004 Comprehensive Long-Term Incentive Plan, as amended and restated (2004 Plan) effective November 5, 2009 upon its approval by the Company’s shareholders, authorized grants of the Company’s common stock. As of June 30, 2013, the Company had 779,000 shares available for grant under the Plan.

Information with respect to this plan is as follows:

(in thousands, except per share amounts)	Total shares			Option price				Weighted average exercise price
Outstanding as of June 30, 2011		1,207		$	9.09	to	21.15	$	14.50
Exercised		(282	)		9.51	to	19.56		15.97
Expired		(8	)		9.51	to	19.56		18.63
Outstanding as of June 30, 2012		917		$	9.51	to	21.15	$	14.06
Exercised		(251	)		9.51	to	19.56		12.29
Expired		(3	)		12.05	to	19.56		16.64
Outstanding and exercisable as of June 30, 2013		663		$	12.05	to	21.15	$	14.72

The following table summarizes significant ranges of outstanding and exercisable options at June 30,

Options outstanding (all shares exercisable)
	Range of exercise prices	Shares		Weighted average remaining life in years		Weighted Average Exercise price
$	12.05		185		1.2	$	12.05
	14.05 –14.73		350		1.4		14.33
	19.56 – 21.15		128		3.1		19.68
			663

All options outstanding are vested, and the aggregate intrinsic value of these options are $5.5 million as of June 30, 2013.

Share activity and value for the years ended:

	June 30,
(amounts in thousands)	2013		2012		2011
Forfeited or expired options		3		8		160
Exercised options		251		282		267
Aggregate intrinsic value of exercised options	$	2,129	$	1,305	$	1,517

Restricted Stock Program

The following table summarizes the restricted stock activity:

(in thousands, except per share amounts)	Total shares			Share price				Weighted average share price
Outstanding at June 30, 2011		850		$	9.09	to	21.03	$	13.16
Issued		241			17.75	to	18.80		17.76
Vested		(328	)		17.75	to	20.01		18.94
Forfeited		(25	)		9.09	to	17.75		15.50
Outstanding at June 30, 2012		738		$	9.09	to	21.03	$	15.30
Issued		160				19.22			19.22
Vested		(261	)		9.09	to	17.75		13.15
Forfeited		(17	)		14.28	to	19.22		16.75
Outstanding at June 30, 2013		620		$	14.28	to	21.03	$	17.19

As of June 30, 2013, the aggregate value of unvested restricted stock compensation expense yet to be recognized, as determined by the market value on the respective grant dates, was $3.5 million (net of forfeitures). The remaining expense is expected to be recognized over a period of approximately three years.