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Stock-Based Compensation
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3 Months Ended |
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Dec. 27, 2014
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| Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
| Stock-Based Compensation |
Stock-Based Compensation
On November 11, 2010, our shareholders approved the Delta Apparel, Inc. 2010 Stock Plan ("2010 Stock Plan"). Upon shareholder approval of the 2010 Stock Plan, no additional awards have been or will be granted under either the Delta Apparel Stock Option Plan ("Option Plan") or the Delta Apparel Incentive Stock Award Plan ("Award Plan"); instead, all stock awards have been and will be granted under the 2010 Stock Plan. Under the 2010 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 consist of stock options, stock appreciation rights, restricted stock, restricted stock units, performance stock, performance units, and other stock and cash awards. The aggregate number of shares of common stock that may be delivered under the 2010 Stock Plan is 500,000 plus any shares of common stock subject to outstanding awards under the Option Plan or Award Plan that are subsequently forfeited or terminated for any reason before being exercised. The 2010 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 any given calendar year. If a participant dies or becomes disabled (as defined in the 2010 Stock Plan) while employed by or serving as a director, all unvested awards become fully vested. The Compensation Committee is authorized to establish the terms and conditions of awards granted under the 2010 Stock Plan, to establish, amend and rescind any rules and regulations relating to the 2010 Stock Plan, and to make any other determinations that it deems necessary.
Compensation expense is recorded on the selling, general and administrative expense line item in our Condensed Consolidated Statements of Operations over the vesting periods. During the three months ended December 27, 2014, we reduced expense by $0.1 million in connection with our outstanding awards due to adjustments to the expected vesting of outstanding performance stock units. We recognized $0.2 million in stock-based compensation expense during the three months ended December 28, 2013.
2010 Stock Plan
As of December 27, 2014, there was $5.2 million of total unrecognized compensation cost related to non-vested awards granted under the 2010 Stock Plan. This cost is expected to be recognized over a period of 4.0 years.
During the quarter ended December 27, 2014, performance stock units representing 169,000 shares of our common stock were granted. Of these performance stock units, 65,000 are based on the achievement of certain performance criteria for the fiscal year ending October 3, 2015. Upon achievement of the performance goals for fiscal year 2015, one-half of these awards are payable in the common stock of Delta Apparel, Inc. and are accounted for under the equity method pursuant to ASC 718 and one-half are payable in cash and are accounted for under the liability method pursuant to ASC 718. Of the remaining 104,000 performance stock units, 52,000 shares are based on the achievement of certain performance criteria for the fiscal year ending October 1, 2016, and 52,000 shares are based on the achievement of certain performance criteria for the fiscal year ending September 30, 2017. Each of these awards are eligible to vest upon the filing of our Annual Report on Form 10-K for the respective fiscal year.
Performance stock units representing 52,000 shares of our common stock were terminated during the quarter ending December 27, 2014. These shares were based on the achievement of certain performance criteria for the twelve months ended June 27, 2015.
During the quarter ended December 27, 2014, restricted stock units representing 355,000 shares of our common stock were granted. These restricted stock units are service-based and are eligible to vest upon the filing of our Annual Report on Form 10-K for the year ending September 29, 2018.
Option Plan
All options granted under the Option Plan have vested. As such, no expense was recognized during the three months ended December 27, 2014, or for the three months ended December 38, 2013. During the three months ended December 27, 2014, vested options representing 14,000 shares of our common stock were exercised, and the shares issued, in accordance with their respective agreements.
Award Plan
All awards granted under the Award Plan have vested and been exercised, and no awards remain outstanding.
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