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Share Capital, Option Plans and Share-Based Payments | 6 Months Ended
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Dec. 31, 2018
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] |
SHARE CAPITAL, OPTION PLANS AND SHARE-BASED PAYMENTS | SHARE CAPITAL, OPTION PLANS AND SHARE-BASED PAYMENTS Cash Dividends For the three and six months ended December 31, 2018, pursuant to the Company’s dividend policy, we declared total non-cumulative dividends of $0.1518 and $0.3036, respectively, per Common Share in the aggregate amount of $40.7 million and $81.2 million, respectively, which we paid during the same period. For the three and six months ended December 31, 2017, pursuant to the Company’s dividend policy, we paid total non-cumulative dividends of $0.1320 and $0.2640, respectively, per Common Share in the aggregate amount of $34.8 million and $69.8 million. Share Capital Our authorized share capital includes an unlimited number of Common Shares and an unlimited number of Preference Shares. No Preference Shares have been issued. Treasury Stock Repurchase From time to time we may provide funds to an independent agent to facilitate repurchases of our Common Shares in connection with the settlement of awards under the Long-Term Incentive Plans (LTIP) or other plans. During the three and six months ended December 31, 2018, we repurchased 370,265 and 674,265, respectively, of our Common Shares, at a cost of approximately $12.8 million and $24.5 million, respectively, for potential reissuance under our LTIP or other plans (three and six months ended December 31, 2017—nil, respectively). See below for more details on our various plans. Reissuance During the three and six months ended December 31, 2018, we reissued 544,929 and 547,897 Common Shares from treasury stock (three and six months ended December 31, 2017—379,111 and 387,443 Common Shares, respectively), in connection with the settlement of awards. Share-Based Payments Total share-based compensation expense for the periods indicated below is detailed as follows:
| Three Months Ended December 31, |  | Six Months Ended December 31,
| 2018 |  | 2017 |  | 2018 |  | 2017
Stock options | $ | 2,319 |  |  | $ | 2,729 |  |  | $ | 4,921 |  |  | $ | 6,031 |
Performance Share Units (issued under LTIP) | 851 |  |  | 937 |  |  | 1,694 |  |  | 1,972 |
Restricted Share Units (issued under LTIP) | 1,626 |  |  | 1,513 |  |  | 3,011 |  |  | 3,399 |
Restricted Share Units (other) | 52 |  |  | 198 |  |  | 133 |  |  | 677 |
Deferred Share Units (directors) | 1,032 |  |  | 945 |  |  | 1,693 |  |  | 1,492 |
Employee Share Purchase Plan | 1,005 |  |  | 836 |  |  | 1,988 |  |  | 1,822 |
Total share-based compensation expense | $ | 6,885 |  |  | $ | 7,158 |  |  | $ | 13,440 |  |  | $ | 15,393 |
Summary of Outstanding Stock Options As of December 31, 2018, an aggregate of 7,118,527 options to purchase Common Shares were outstanding and an additional 10,297,784 options to purchase Common Shares were available for issuance under our stock option plans. Our stock options generally vest over four years and expire between seven and ten years from the date of the grant. Currently we also have options outstanding that vest over five years, as well as options outstanding that vest based on meeting certain market conditions. The exercise price of all our options is set at an amount that is not less than the closing price of our Common Shares on the NASDAQ on the trading day immediately preceding the applicable grant date. A summary of activity under our stock option plans for the six months ended December 31, 2018 is as follows:
| Options |  | Weighted- Average Exercise Price |  | Weighted- Average Remaining Contractual Term (years) |  | Aggregate Intrinsic Value ($’000s)
Outstanding at June 30, 2018 | 7,078,435 |  |  | $ | 28.41 |  |  |  |  |
Granted | 865,340 |  |  | 38.56 |  |  |  |  |
Exercised | (555,952 | ) |  | 25.48 |  |  |  |  |
Forfeited or expired | (269,296 | ) |  | 31.60 |  |  |  |  |
Outstanding at December 31, 2018 | 7,118,527 |  |  | $ | 29.75 |  |  | 4.28 |  | $ | 28,080 |
Exercisable at December 31, 2018 | 2,626,538 |  |  | $ | 25.41 |  |  | 2.92 |  | $ | 19,291 |
We estimate the fair value of stock options using the Black-Scholes option-pricing model or, where appropriate, the Monte Carlo Valuation Method, consistent with the provisions of ASC Topic 718, "Compensation—Stock Compensation" (Topic 718) and SEC Staff Accounting Bulletin No. 107. The option-pricing models require input of subjective assumptions, including the estimated life of the option and the expected volatility of the underlying stock over the estimated life of the option. We use historical volatility as a basis for projecting the expected volatility of the underlying stock and estimate the expected life of our stock options based upon historical data. We believe that the valuation techniques and the approach utilized to develop the underlying assumptions are appropriate in calculating the fair value of our stock option grants. Estimates of fair value are not intended, however, to predict actual future events or the value ultimately realized by employees who receive equity awards. For the periods indicated, the weighted-average fair value of options and weighted-average assumptions were as follows:
| Three Months Ended December 31, |  | Six Months Ended December 31,
| 2018 |  | 2017 |  | 2018 |  | 2017
Weighted–average fair value of options granted | $ | 7.37 |  |  | $ | 7.49 |  |  | $ | 8.55 |  |  | $ | 7.46 |
Weighted-average assumptions used: |  |  |  |  |  |  |
Expected volatility | 25.95 | % |  | 26.64 | % |  | 26.05 | % |  | 27.11 | %
Risk–free interest rate | 2.97 | % |  | 1.95 | % |  | 2.82 | % |  | 1.81 | %
Expected dividend yield | 1.73 | % |  | 1.48 | % |  | 1.49 | % |  | 1.45 | %
Expected life (in years) | 4.32 |  |  | 4.58 |  |  | 4.32 |  |  | 4.42 |
Forfeiture rate (based on historical rates) | 6 | % |  | 6 | % |  | 6 | % |  | 6 | %
Average exercise share price | $ | 33.97 |  |  | $ | 34.48 |  |  | $ | 38.56 |  |  | $ | 34.49 |
As of December 31, 2018, the total compensation cost related to the unvested stock option awards not yet recognized was approximately $19.9 million, which will be recognized over a weighted-average period of approximately 2.6 years. No cash was used by us to settle equity instruments granted under share-based compensation arrangements in any of the periods presented. We have not capitalized any share-based compensation costs as part of the cost of an asset in any of the periods presented. For the three and six months ended December 31, 2018, cash in the amount of $1.8 million and $14.2 million, respectively, was received as the result of the exercise of options granted under share-based payment arrangements. The tax benefit realized by us during the three and six months ended December 31, 2018 from the exercise of options eligible for a tax deduction was $15.0 thousand and $0.9 million, respectively. For the three and six months ended December 31, 2017, cash in the amount of $3.4 million and $19.6 million, respectively, was received as the result of the exercise of options granted under share-based payment arrangements. The tax benefit realized by us during the three and six months ended December 31, 2017 from the exercise of options eligible for a tax deduction was $0.2 million and $0.3 million, respectively. Long-Term Incentive Plans We incentivize our executive officers, in part, with long-term compensation pursuant to our LTIP. The LTIP is a rolling three year program that grants eligible employees a certain number of target Performance Share Units (PSUs) and/or Restricted Share Units (RSUs). Target PSUs become vested upon the achievement of certain financial and/or operational performance criteria (the Performance Conditions) that are determined at the time of the grant. Target RSUs become vested when an eligible employee remains employed throughout the vesting period. PSUs and RSUs granted under the LTIPs have been measured at fair value as of the effective date, consistent with Topic 718, and will be charged to share-based compensation expense over the remaining life of the plan. Stock options granted under the LTIPs have been measured using the Black-Scholes option-pricing model, consistent with Topic 718. We estimate the fair value of PSUs using the Monte Carlo pricing model and RSUs have been valued based upon their grant date fair value. As of December 31, 2018, the total expected compensation cost related to the unvested LTIP awards not yet recognized was $19.0 million, which is expected to be recognized over a weighted average period of 2.1 years. LTIP grants that have recently vested, or have yet to vest, are described below. LTIP grants are referred to in this Quarterly Report on Form 10-Q based upon the year in which the grants are expected to vest. Fiscal 2018 LTIP Grants made in Fiscal 2016 under the LTIP (collectively referred to as Fiscal 2018 LTIP), consisting of PSUs and RSUs, took effect in Fiscal 2016 starting on August 23, 2015. We settled the Fiscal 2018 LTIP by issuing 539,103 Common Shares from treasury stock during the three months ended December 31, 2018, with a cost of $13.8 million. Fiscal 2019 LTIP Grants made in Fiscal 2017 under the LTIP (collectively referred to as Fiscal 2019 LTIP), consisting of PSUs and RSUs, took effect in Fiscal 2017 starting on August 14, 2016. The Performance Conditions for vesting of the PSUs are based solely upon market conditions. The RSUs are employee service-based awards and vest over the life of the Fiscal 2019 LTIP. We expect to settle the Fiscal 2019 LTIP awards in stock. Fiscal 2020 LTIP Grants made in Fiscal 2018 under the LTIP (collectively referred to as Fiscal 2020 LTIP), consisting of PSUs and RSUs, took effect in Fiscal 2018 starting on August 7, 2017. The Performance Conditions for vesting of the PSUs are based solely upon market conditions. The RSUs are employee service-based awards and vest over the life of the Fiscal 2020 LTIP. We expect to settle the Fiscal 2020 LTIP awards in stock. Fiscal 2021 LTIP Grants made in Fiscal 2019 under the LTIP (collectively referred to as Fiscal 2021 LTIP), consisting of PSUs and RSUs, took effect in Fiscal 2019 starting on August 6, 2018. The Performance Conditions for vesting of the PSUs are based solely upon market conditions. The RSUs are employee service-based awards and vest over the life of the Fiscal 2021 LTIP. We expect to settle the Fiscal 2021 LTIP awards in stock. Restricted Share Units (RSUs) During the three and six months ended December 31, 2018, we did not grant any RSUs to employees in accordance with employment and other agreements (three and six months ended December 31, 2017—1,496 and 4,464 RSUs, respectively). The RSUs vest over a specified contract date, typically three years from the respective date of grants. We expect to settle the awards in stock. During the three and six months ended December 31, 2018, we issued 5,826 and 8,794 Common Shares, respectively, from treasury stock, with a cost of $0.2 million and $0.3 million, respectively, in connection with the settlement of these vested RSUs (three and six months ended December 31, 2017—66,460 and 74,792 Common Shares, respectively, with a cost of $1.4 million and $1.6 million, respectively). Deferred Stock Units (DSUs) During the three and six months ended December 31, 2018, we granted 90,184 and 93,342 DSUs, respectively, to certain non-employee directors (three and six months ended December 31, 2017—77,606 and 80,809 DSUs, respectively). The DSUs were issued under our Deferred Share Unit Plan. DSUs granted as compensation for director fees vest immediately, whereas all other DSUs granted vest at our next annual general meeting following the granting of the DSUs. No DSUs are payable by us until the director ceases to be a member of the Board. Employee Share Purchase Plan (ESPP) Our ESPP offers employees a purchase price discount of 15%. During the three and six months ended December 31, 2018, 160,088 and 336,162 Common Shares, respectively, were eligible for issuance to employees enrolled in the ESPP (three and six months ended December 31, 2017—146,248 and 338,617 Common Shares, respectively). During the three and six months ended December 31, 2018, cash in the amount of approximately $4.4 million and $10.1 million, respectively, was received from employees relating to the ESPP (three and six months ended December 31, 2017—$4.4 million and $10.1 million, respectively).

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- Definition The entire disclosure for accounts comprising shareholders' equity, comprised of portions attributable to the parent entity and noncontrolling interest, including other comprehensive income, and compensation-related costs for equity-based compensation. Includes, but is not limited to, disclosure of policies, compensation plan details, equity-based arrangements to obtain goods and services, deferred compensation arrangements, and employee stock purchase plan details. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 505 -URI http://asc.fasb.org/topic&trid=2208762 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 718 -URI http://asc.fasb.org/topic&trid=2228938 + Details
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