Quarterly report pursuant to Section 13 or 15(d)

Stock-based Compensation

Stock-based Compensation
6 Months Ended
Apr. 01, 2023
Stock-based Compensation [Abstract]  
Stock-based Compensation
Note H—Stock-Based Compensation
On February 6, 2020, our shareholders approved the Delta Apparel, Inc. 2020 Stock Plan ("2020
Stock Plan") to replace the 2010 Stock Plan,
which was previously re-
approved by our shareholders on February 4, 2015,
and was scheduled to expire by its terms
on September 14, 2020. The 2020 Stock Plan is substantially
similar in both
form and substance to the 2010 Stock
Plan. The purpose of the 2020 Stock
Plan is to continue to give our Board
of Directors and its Compensation Committee
the ability
to offer a variety of compensatory awards designed to enhance the Company’s long-term success by encouraging stock ownership among its executives, key employees
and directors. Under the 2020 Stock Plan,
the Compensation Committee of our Board of
Directors has the authority to determine the
employees and directors to whom
awards may be granted, and
the size and type of
each award and manner in
which such awards will vest. The
awards available under the plan
consist of stock options,
stock appreciation rights, restricted
stock, restricted stock units, performance
stock, stock performance units, and
other stock and cash
awards. While employed by
Company or serving as a director, unvested awards become fully vested under certain circumstances as defined in the 2020 Stock Plan. Such circumstances include, but
are not limited to, the
participant’s death or disability. The Compensation Committee
is authorized to establish the
terms and conditions of awards
granted under the 2020
Stock Plan, to
establish, amend and
rescind any rules
and regulations relating
to the 2020
Stock Plan, and
to make any
other determinations
that it deems
necessary. Similar
to the 2010
Stock Plan, the 2020
Stock Plan limits the
number of shares that
may be covered by
awards to any participant
in a given
calendar year and also
limits the
aggregate awards of restricted stock, restricted stock units and performance stock granted in a given calendar year. Shares are generally issued from treasury stock upon
the vesting of the restricted stock units, performance units or other
awards under the 2020 Stock Plan.
Compensation expense is recorded within SG&A in our Condensed Consolidated Statements of Operations over the vesting periods. During the March 2023 and March
2022 quarters, we recognized $
million and $
million in stock-based compensation expense, respectively.
Associated with this compensation cost are
income tax
benefits recognized of $
million and $
million, respectively, for each of the three-month periods ended March 2023 and March
2022. During the six-months ended
March 2023 and March
2022, we recognized $
million and $
respectively, in stock-based compensation
expense. Associated with
the compensation cost
are income
tax benefits recognized of $
million and $
million, respectively, for each of the six-months periods ended March 2023 and March
During the December 2022 quarter, restricted
stock units representing
shares of our common stock
vested with the filing of
our Annual Report on Form
10-K for
fiscal 2022 and were issued in accordance with their respective
agreements. Of these vested awards, all were payable in
common stock.
During the
December 2022 quarter,
performance stock units
and restricted stock
units representing
shares of our
common stock, respectively,
As of March 2023, there was $
million of total unrecognized compensation cost related to unvested awards granted under the 2020
Stock Plan. This cost is expected
to be recognized over a period of