8. STOCK-BASED COMPENSATION

In November 2004, the Company adopted the Omnibus Long-Term Incentive Plan ("2004 Plan"). Under the 2004 Plan, 2,600,000 shares of common stock have been authorized for future grants to officers, directors, key employees and other persons. The 2004 Plan provides for the grant of stock options, unrestricted stock, restricted stock, dividend equivalent rights, SSARs and cash awards. Any of these awards may, but need not, be made as performance incentives. Stock options granted under the 2004 Plan may be non-qualified stock options or incentive stock options.

The Company recognized stock-based compensation expense as follows:

	For the Fiscal Years Ended June 30,
	2015		2014			2013
	(Amounts in thousands)
Stock options	$	417	$	468		$	456
Stock appreciation rights		1,422		1,305			1,107
Restricted stock		2,511		3,110			3,240
Performance stock		791		(2,303	)		898

Total stock-based compensation expense	$	5,141	$	2,580		$	5,701

Stock-based compensation expense is included within general and administrative expense in the consolidated statements of operations and comprehensive income.

Stock Options and Stock Appreciation Rights

Stock option and SSARs awards are granted with an exercise price equal to the closing market price of the Company's stock at the date of grant. Stock option and SSARs awards granted to officers, key employees and other persons vest based on one to three years of continuous service. Stock option and SSARs awards have 10 year contractual terms.

To determine stock-based compensation expense for stock options and SSARs, the fair value of each stock option and SSAR is estimated on the date of grant using the Black-Scholes-Merton ("Black-Scholes") option pricing model for all periods presented. The Black-Scholes model requires key assumptions in order to determine fair value. Those key assumptions during the fiscal year 2015, 2014 and 2013 grants are noted in the following table:

	Stock Options									SSARs
	2015			2014			2013			2015			2014			2013
Weighted-average expected volatility		37.3	%		43.6	%		43.1	%		36.6	%		41.3	%		43.7	%
Weighted-average expected life in years		5.5			5.5			5.5			5.3			4.8			6.4
Weighted-average dividend yield		1.00	%		1.00	%		0.86	%		1.00	%		1.00	%		0.90	%
Weighted-average risk free interest rate		1.7	%		1.7	%		0.8	%		1.7	%		1.5	%		1.0	%

The Company's expected volatility is based on the historical volatility of the Company's stock over the expected option term. The Company's expected option term is determined by historical exercise patterns along with other known employee or company information at the time of grant. The risk free interest rate is based on the zero-coupon U.S. Treasury bond at the time of grant with a term approximate to the expected option term.

Stock Options

A summary of stock option activity under the 2004 Plan for the fiscal year ended June 30, 2015, is presented below.

	Number of Shares			Weighted- Average Exercise Price		Weighted- Average Remaining Contractual Life (Years)		Aggregate Intrinsic Value (in thousands)
Outstanding at July 1, 2014		101,393		$	52.37
Granted		21,703		$	74.85
Exercised		(20,488	)	$	37.82
Forfeited		(6,453	)	$	71.12

Outstanding at June 30, 2015		96,155		$	59.28		6.5	$	734


Exercisable at June 30, 2015		59,762		$	53.36		5.3	$	692

The weighted-average grant date fair value of options granted during the fiscal years ended June 30, 2015, 2014 and 2013, was $24.86, $22.78 and $26.76, respectively. The total intrinsic value of options exercised during the fiscal years ended June 30, 2015, 2014 and 2013, were $0.7 million, $1.1 million, and $4.1 million, respectively.

As of June 30, 2015, there was approximately $0.5 million of total unrecognized stock-based compensation expense related to non-vested stock options granted under the 2004 Plan, which is expected to be recognized over a weighted-average period of 1.8 years.

SSARs

A summary of SSARs activity under the 2004 Plan for the fiscal year ended June 30, 2015, is presented below.

	Number of Shares			Weighted- Average Exercise Price		Weighted- Average Remaining Contractual Life (Years)		Aggregate Intrinsic Value (in thousands)
Outstanding at July 1, 2014		229,056		$	59.67
Granted		88,872		$	75.61
Exercised		(16,612	)	$	57.61
Forfeited		(24,198	)	$	71.06

Outstanding at June 30, 2015		277,118		$	63.91		7.2	$	1,077


Exercisable at June 30, 2015		141,280		$	57.32		5.9	$	1,073

The weighted-average grant date fair value of SSARs granted during the fiscal years ended June 30, 2015, 2014 and 2013 was $24.42, $21.15 and $29.78, respectively. The total intrinsic value of SSARs exercised during the fiscal years ended June 30, 2015, 2014 and 2013, were $0.2 million, $0.1 million, and $3.5 million, respectively.

As of June 30, 2015, there was approximately $1.9 million of total unrecognized stock-based compensation expense related to non-vested SSARs granted under the 2004 Plan, which is expected to be recognized over a weighted-average period of 1.8 years.

Other Stock-based Compensation

Performance Shares

During fiscal 2015, officers and certain employees were granted 49,725 shares of restricted common stock that can be earned only if a single pre-defined performance goal is met within five years of the date of grant ("Performance Shares"). If the performance goal is not earned by the end of this five year period, the Performance Shares will be forfeited. Vesting of Performance Shares is subject to certain performance measures being met and can be based on an interim earn out of 25%, 50%, 75% or 100%. For Performance Shares granted during fiscal year 2015, there is a single pre-defined performance goal, which is growth of adjusted free cash flow on a per share, trailing twelve month basis.

The Company measures the fair value of the Performance Shares based upon the market price of our common stock as of the date of grant. In accordance with ASC 718, the measurement date for the Performance Shares will be determined at such time that the performance goals are attained or that it is probable they will be attained. At such time that it is probable that a performance condition will be achieved, compensation expense will be measured by the number of shares that will ultimately be earned based on the grant date market price of our common stock. For shares that were previously estimated to be probable of vesting and are no longer deemed to be probable of vesting, compensation expense is reversed during the period in which it is determined they are no longer probable of vesting. Interim recognition of compensation expense will be made at such time as management can reasonably estimate the number of shares that will be earned.

A summary of the status of the Company's non-vested Performance Shares for the fiscal year ended June 30, 2015, is presented below:

	Number of Shares			Weighted- Average Grant Date Fair Value
Non-vested at July 1, 2014		179,550		$	64.28
Granted		49,725		$	75.15
Vested		—		$	—
Forfeited		(28,950	)	$	67.44

Non-vested at June 30, 2015		200,325		$	66.52

As of June 30, 2015, total unrecognized stock-based compensation expense related to Performance Shares was approximately $1.3 million, which is expected to be recognized over the average remaining vesting period of 2.1 years.

Restricted Stock

As defined in the 2004 Plan, officers, non-executive directors and certain employees may be granted shares of restricted stock that vest on continued service alone ("Restricted Stock"). During fiscal 2015, officers and certain employees were granted 42,725 shares of Restricted Stock. Restricted Stock awards granted to officers and certain employees vest over three years beginning after a two-year holding period from the date of grant with one-third of the shares vesting in years three, four and five, respectively. Also during fiscal year 2015, our non-executive directors were granted 12,864 shares of Restricted Stock. The non-executive directors' shares of Restricted Stock vest 50% immediately and 50% one year after the date of grant.

Shares of Restricted Stock represent issued and outstanding shares of common stock, with dividend and voting rights. The Company measures the fair value of the Restricted Stock based upon the market price of our common stock as of the date of grant. Restricted Stock is amortized over the applicable vesting period using the straight-line method. Unvested shares of Restricted Stock are subject to forfeiture upon termination of employment or service with the Company.

A summary of the status of the Company's non-vested Restricted Stock for the fiscal year ended June 30, 2015, is presented below:

	Number of Shares			Weighted- Average Grant Date Fair Value
Non-vested at July 1, 2014		177,094		$	58.06
Granted		58,514		$	75.39
Vested		(51,701	)	$	48.76
Forfeited		(29,100	)	$	65.93

Non-vested at June 30, 2015		154,807		$	66.23

As of June 30, 2015, total unrecognized stock-based compensation expense related to Restricted Stock was approximately $5.2 million, which is expected to be recognized over the weighted-average vesting period of 3.2 years.