Stock-Based Compensation

3 Months Ended

Oct. 31, 2015

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

Disclosure of Compensation Related Costs, Share-based Payments

STOCK-BASED COMPENSATION

We determine the fair value of stock options and restricted stock issued under our long term incentive plans as of the grant date. We recognize the related compensation expense over the period from the date of grant to the date when the award is no longer contingent on the employee providing additional service to the Company.

The Oil-Dri Corporation of America 2006 Long Term Incentive Plan (the “2006 Plan”) permits the grant of stock options, stock appreciation rights, restricted stock, restricted stock units, performance awards and other stock-based and cash-based awards. Our employees and outside directors are eligible to receive grants under the 2006 Plan. The total number of shares of stock subject to grants under the 2006 Plan may not exceed 937,500. Stock options have been granted to our outside directors with a vesting period of one year and stock options granted to employees generally vest 25%two years after the grant date and in each of the three following anniversaries of the grant date. In addition, restricted shares have been issued under the 2006 Plan as described in the restricted stock section below.

Stock Options

A summary of stock option transactions is shown below:

	Number of Shares		Weighted Average Exercise Price		Weighted Average Remaining Contractual Term	Aggregate Intrinsic Value
	(in thousands)				(Years)	(in thousands)
Options outstanding and exercisable, July 31, 2015	41		$	15.43	0.9	$	447
Exercised	(12	)	$	14.82		$	102
Options outstanding and exercisable, October 31, 2015	29		$	15.70	0.7	$	451

The amount of cash received from the exercise of stock options during the first three months of fiscal 2016 was $185,000 and the related tax benefit was $28,000. The amount of cash received from the exercise of stock options during the first three months of fiscal 2015 was $15,000 and the related tax benefit was $3,000.

No stock options were granted in the first three months of either fiscal 2016 or 2015.

Restricted Stock

All of our non-vested restricted stock as of October 31, 2015 was issued under the 2006 Plan with vesting periods between two years and five years.

Under the 2006 Plan, 37,000 restricted shares of Common Stock were granted in the first quarter of fiscal year 2016. There were 9,000 restricted shares of Common Stock granted in the first quarter of fiscal 2015. Also in the first quarter of fiscal year 2016, 126,000 shares of restricted Common Class B stock were granted.

Stock-based compensation expense related to non-vested restricted stock in the first quarter of fiscal years 2016 and 2015 was $332,000 and $308,000, respectively.

A summary of restricted stock transactions is shown below:

	Restricted Shares (in thousands)		Weighted Average Grant Date Fair Value
Non-vested restricted stock outstanding at July 31, 2015	74		$	28.83
Granted	163		$	24.79
Vested	(28	)	$	23.23
Non-vested restricted stock outstanding at October 31, 2015	209		$	26.42