6. Stock-based Compensation

As of December 31, 2013, the Company maintained two share-based employee compensation plans (the “OSI Plans”): the 2012 Incentive Award Plan (“2012 Plan”) and the 2006 Equity Participation Plan (“2006 Plan”). Upon the effective date of the 2012 Plan, the Company ceased to make grants under the 2006 Plan.

The Company recorded stock-based compensation expense in the condensed consolidated statements of operations as follows (in thousands):

	Three Months Ended December 31,				Six Months Ended December 31,
	2012		2013		2012		2013
Cost of goods sold	$	129	$	255	$	267	$	525
Selling, general and administrative	3,431		4,770		6,764		10,072
Research and development	54		58		116		124
Stock-based compensation expense before taxes	$	3,614	$	5,083	7,147		$	10,721
Less: related income tax benefit	1,372		1,963		2,209		4,138
Stock-based compensation expense, net of estimated taxes	$	2,242	$	3,120	$	4,938	$	6,583

As of December 31, 2013, total unrecognized compensation cost related to share-based compensation grants were estimated at $1.6 million for stock options and $24.3 million for restricted stock and restricted stock units (“RSUs”) under the OSI Plans. The Company expects to recognize these costs over a weighted-average period of 1.7 years with respect to the options and 2.0 years for grants of restricted stock and RSUs.

The following summarizes stock option activity during the six months ended December 31, 2013:

	Number of Options		Weighted- Average Exercise Price		Weighted-Average Remaining Contractual Term	Aggregate Intrinsic Value (in thousands)
Outstanding at June 30, 2013	1,019,733		$	26.33
Granted	10,294		$	70.59
Exercised	(1,169	)	$	39.97
Expired or forfeited	(1,917	)	$	53.89
Outstanding at December 31, 2013	1,026,941		$	26.70	6.1 years	$	27,410
Exercisable at December 31, 2013	835,329		$	22.19	5.5 years	$	25,825

A summary of restricted stock and RSU award activity during the six months ended December 31, 2013 is as follows:

	Shares		Weighted- Average Fair Value
Nonvested at June 30, 2013	627,124		$	43.19
Granted	322,275		63.73
Vested	(267,402	)	38.70
Forfeited	(2,192	)	49.82
Nonvested at December 31, 2013	679,805		$	54.68

As of December 31, 2013, there were 3,310,467 shares available for grant under the 2012 Plan. Under the terms of that plan, restricted stock and RSUs granted from the pool of shares available for grant on or after December 12, 2012 reduce the pool by 1.87 shares for each share granted. Restricted stock and RSUs forfeited and returned to the pool of shares available for grant increase the pool by 1.87 shares for each share forfeited.

The Company granted 178,500 and 160,922 performance-based awards during the six months ended December 31, 2012 and December 31, 2013 respectively. These performance-based restricted stock and RSU awards are contingent on the achievement of certain financial performance metrics. The payout can range from zero to 250% of the original number of shares or units awarded, which are converted into shares of the Company’s common stock.