XML 39 R11.htm IDEA: XBRL DOCUMENT v2.4.1.9
Stock-based Compensation
 6 Months Ended
Dec. 31, 2014
Stock-based Compensation  
Stock-based Compensation

 

5. Stock-based Compensation

 

As of December 31, 2014, the Company maintained two share-based employee compensation plans (the “OSI Plans”): the 2012 Incentive Award Plan (“2012 Plan”) and the Amended and Restated 2006 Equity Participation Plan (“2006 Plan”). Upon stockholder approval 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,

 

 

 

2013

 

2014

 

2013

 

2014

 

Cost of goods sold

 

$
255

 

$
290

 

$
525

 

$
495

 

Selling, general and administrative

 
4,770

 
5,724

 
10,072

 
11,488

 

Research and development

 
58

 
68

 
124

 
95

 

Stock-based compensation expense before taxes

 

$
5,083

 

$
6,082

 
10,721

 

$
12,078

 

Less: related income tax benefit

 
(1,963

)
(2,354

)
(4,138

)
(4,761

)

Stock-based compensation expense, net of estimated taxes

 

$
3,120

 

$
3,728

 

$
6,583

 

$
7,317

 

 

As of December 31, 2014, total unrecognized compensation cost related to share-based compensation grants were estimated at $1.2 million for stock options and $24.4 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 1.9 years with respect to the options and 1.8 years for grants of restricted stock and RSUs.

 

The following summarizes stock option activity during the six months ended December 31, 2014:

 

 

 

Number of
Options

 

Weighted-
Average
Exercise
Price

 

Weighted-Average
Remaining Contractual
Term

 

Aggregate
Intrinsic Value
(in thousands)

 

Outstanding at June 30, 2014

 
1,022,991

 

$
26.60

 

 

 

 

 

Granted

 
42,476

 

$
68.03

 

 

 

 

 

Exercised

 
(19,803

)

$
41.00

 

 

 

 

 

Expired or forfeited

 
(2,899

)

$
58.42

 

 

 

 

 

Outstanding at December 31, 2014

 
1,042,765

 

$
27.92

 

5.3 years

 

$
44,681

 

Exercisable at December 31, 2014

 
949,969

 

$
24.19

 

4.9 years

 

$
43,608

 

 

The following summarizes restricted stock and RSU award activity during the six months ended December 31, 2014:

 

 

 

Shares

 

Weighted-
Average
Fair Value

 

Nonvested at June 30, 2014

 
661,400

 

$
54.78

 

Granted

 
279,121

 
64.65

 

Vested

 
(248,502

)
42.25

 

Forfeited

 
(7,075

)
38.33

 

Nonvested at December 31, 2014

 
684,944

 

$
63.52

 

 

As of December 31, 2014, there were 2,979,007 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 160,922 and 151,469 performance-based RSUs during the six months ended December 31, 2013 and 2014, respectively. These performance-based restricted stock 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.