Share-based compensation expense totaled million, million, and million in fiscal and respectively. These amounts have been included in the consolidated statements of comprehensive income within selling, general and administrative expenses. During fiscal and we recognized related tax benefits associated with our share-based compensation arrangements totaling million, million, and million, respectively (before valuation allowances). Such amounts have been included in the consolidated statements of comprehensive income within income tax expense. There was stock-based compensation capitalized as of and respectively.

 

At we had shares of common stock available for future issuance pursuant to the Ethan Allen Interiors Inc. Stock Incentive Plan (the “Plan”). Under this Plan, the aggregate number of shares of common stock that be issued through awards of any form is shares. The Plan provides for the grant of non-compensatory stock options to eligible employees and non-employee directors. Stock options under the Plan are non-qualified under section of the Internal Revenue Code and allow for the purchase of shares of our common stock. The Plan also provides for the issuance of stock appreciation rights (“SARs”) on issued options, however SARs have been issued to date. The option awards are approved by the Compensation Committee of the Board of Directors after consideration of recommendations proposed by the Chief Executive Officer. Options are generally granted with an exercise price equal to the market price of our common stock at the date of grant, vest ratably over a specified service period, and have a contractual term of years. Equity awards can also include performance vesting conditions. Company policy further requires an additional year holding period beyond the service vest date for certain executives. Beginning grants to employees include both company performance and service vesting conditions (as further described below). Grants to independent directors have a year service vesting condition. The following is a description of equity grants made under the Plan.

 

 

A summary of stock option activity during the fiscal year ended is presented below.

 

										Weighted
						Weighted				Average
						Average				Remaining				Aggregate
						Exercise				Contractual				Intrinsic Value
		Options				Price				Term (yrs)				($ in thousands)
Outstanding - June 30, 2018			561,595			$	21.70
Granted			25,590			$	23.45
Exercised			(52,250	)		$	15.73
Canceled (forfeited/expired)			(156,024	)		$	23.36
Outstanding - June 30, 2019			378,911			$	21.95				4.4			$	990
Exercisable - June 30, 2019			319,024			$	21.04				3.7			$	990

 

The aggregate intrinsic value of options exercised during fiscal and was million, million, and million, respectively.

 

As of million of total unrecognized compensation expense related to non-vested stock options is expected to be recognized over a weighted average period of years. A summary of the nonvested shares as of and changes during the year then ended is presented below.

 

						Weighted Average
		Options				Exercise Price
Nonvested June 30, 2018			108,172			$	27.74
Granted			25,590			$	23.45
Vested			(63,436	)		$	27.16
Canceled (forfeited/expired)			(10,439	)		$	25.95
Nonvested at June 30, 2019			59,887			$	26.84

 

 

We estimate, as of the date of grant, the fair value of stock options awarded using the Black-Scholes option pricing model. Use of a valuation model requires management to make certain assumptions with respect to selected model inputs, including anticipated changes in the underlying stock price (i.e. expected volatility) and option exercise activity (i.e. expected life). Expected volatility is based on the historical volatility of our stock. The risk-free rate of return is based on the United States Treasury bill rate extrapolated to the term matching the expected life of the grant. The dividend yield is based on the annualized dividend rate at the grant date relative to the grant date stock price. The expected life of options granted, which represents the period of time that the options are expected to be outstanding, is based, primarily, on historical data.

 

There were stock option awards granted to employees during each of the past fiscal years. Non-employee (independent) directors were granted stock options each year and valued using the Black-Scholes option pricing model with the following weighted average assumptions:

 

		2019				2018				2017
Volatility			31.3	%			31.5	%			36.8	%
Risk-free rate of return			2.80	%			1.76	%			1.03	%
Dividend yield			3.24	%			2.47	%			1.96	%
Expected average life (years)			5.0				4.6				5.0
Grant date fair value ($)		$	5.30			$	6.93			$	8.30
Fair value as a % of exercise price			22.6	%			22.5	%			23.9	%

 

 

Under the Plan, the Compensation Committee of the Board of Directors was authorized to award common shares to certain employees based on the attainment of certain financial goals over a given performance period. The awards are offered at cost to the employees. In the event of an employee's termination during the vesting period, the potential right to earn shares under this program is generally forfeited.

 

Payout of these grants depends on our financial performance () and a market-based condition based on the total return our shareholders receive on their investment in our stock relative to returns earned through investments in other peer companies (). The performance award opportunity ranges from of the employee's target award if minimum performance requirements are met to a maximum of of the target award based on the attainment of certain financial and shareholder-return goals over a specific performance period, which is generally fiscal years. The number of awards that will vest, as well as unearned and canceled awards, depend on the achievement of certain financial and shareholder-return goals over the -year performance periods, and will be settled in shares if service conditions are met, requiring employees to remain employed with us through the end of the -year performance periods. We account for stock unit awards as equity-based awards because upon vesting, they will be settled in common shares. We expense as compensation cost the fair value of the shares as of the grant date and amortize expense ratably over the total performance and time vest period, considering the probability that we will satisfy the performance goals.

 

The following table summarizes the performance-based stock units’ activity during fiscal at the maximum award amounts based upon the respective performance share agreements:

 

						Weighted Average
						Grant Date
		Units				Fair Value
Outstanding at June 30, 2018			330,369			$	26.15
Granted			105,644			$	18.33
Vested			(7,654	)		$	26.79
Canceled (forfeited/expired)			(114,477	)		$	28.02
Outstanding at June 30, 2019			313,882			$	22.82

 

We estimate, as of the date of grant, the fair value of Performance Units with a discounted cash flow model, using as model inputs the risk-free rate of return as the discount rate, dividend yield for dividends paid during the restriction period, and a discount for lack of marketability for a -year post-vest holding period. The lack of marketability discount used is the present value of a future put option using Monte-Carlo and Black-Scholes pricing models. The weighted average assumptions used for the fiscal years ended are noted in the following table.

 

		2019				2018				2017
Volatility			32.1	%			32.9	%			30.8	%
Risk-free rate of return			2.72	%			1.41	%			0.92	%
Dividend yield			3.24	%			2.47	%			1.97	%
Expected average life (years)			3.0				1.9				2.0

 

Share-based compensation expenses related to performance-based shares recognized in our consolidated statements of comprehensive income are presented in the following table for the fiscal years ended in thousands).

 

		2019				2018				2017
Fiscal 2016 grants		$	5			$	92			$	794
Fiscal 2017 grants			-				(12	)			12
Fiscal 2018 grants			(457	)			457				-
Fiscal 2019 grants			321				-				-
Total expense		$	(131	)		$	537			$	806

 

As of we estimate million of total unrecognized compensation cost related to outstanding stock units granted under the Plan. That cost is expected to be recognized over a weighted average period of years.

 

 

There was restricted stock award activity during fiscal As of or there were restricted stock awards outstanding, respectively.