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Stockholders' Equity
 9 Months Ended
Mar. 31, 2016
Stockholders' Equity  
Stockholders' Equity

 

6. Stockholders’ Equity

 

The Company has an active common stock repurchase program. During the nine-month period ended March 31, 2016, the Company repurchased 1,201,402 shares for $73.4 million under this program. During the nine-month period ended March 31, 2015, the Company repurchased 116,431 shares for $23.4 million under this program. At March 31, 2016, the Company had authorization from the Board of Directors to repurchase up to approximately 63,000 more shares. In April 2016, the Board of Directors authorized a new common stock repurchase program for the repurchase of an additional 1 million shares.

 

As of March 31, 2016, 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”). The Company no longer makes 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
March 31,

 

Nine Months Ended
March 31,

 

 

 

2015

 

2016

 

2015

 

2016

 

Cost of goods sold

 

$
278

 

$
302

 

$
773

 

$
899

 

Selling, general and administrative

 
5,718

 
4,456

 
17,206

 
12,475

 

Research and development

 
61

 
70

 
156

 
208

 

 

 

 

 

 

 

 

 

 

 

Stock-based compensation expense before taxes

 

$
6,057

 

$
4,828

 

$
18,135

 

$
13,582

 

Less: related income tax benefit

 
(2,344

)
(1,850

)
(7,105

)
(5,184

)

 

 

 

 

 

 

 

 

 

 

Stock-based compensation expense, net of estimated taxes

 

$
3,713

 

$
2,978

 

$
11,030

 

$
8,398

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

As of March 31, 2016, total unrecognized compensation cost related to share-based compensation grants were estimated at $0.9 million for stock options and $16.6 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 1.8 years.

 

The following summarizes stock option activity during the nine months ended March 31, 2016:

 

 

 

Number of
Options

 

Weighted-
Average
Exercise
Price

 

Weighted-Average
Remaining Contractual
Term

 

Aggregate
Intrinsic Value
(in thousands)

 

Outstanding at June 30, 2015

 
1,012,650

 

$
27.30

 

 

 

 

 

Granted

 
33,088

 

$
74.48

 

 

 

 

 

Exercised

 
(106,974

)

$
28.03

 

 

 

 

 

Expired or forfeited

 
(5,347

)

$
65.21

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Outstanding at March 31, 2016

 
933,417

 

$
28.67

 

4.2 years

 

$
34,753

 

 

 

 

 

 

 

 

 

 

 

 

 

Exercisable at March 31, 2016

 
858,961

 

$
25.31

 

3.9 years

 

$
34,545

 

 

 

 

 

 

 

 

 

 

 

 

 

 

The following summarizes restricted stock and RSU award activity during the nine months ended March 31, 2016:

 

 

 

Shares

 

Weighted-
Average
Fair Value

 

Nonvested at June 30, 2015

 
659,906

 

$
63.75

 

Granted

 
332,701

 
73.12

 

Vested

 
(389,617

)
65.24

 

Forfeited

 
(48,312

)
67.66

 

 

 

 

 

 

 

Nonvested at March 31, 2016

 
554,678

 

$
67.99

 

 

 

 

 

 

 

 

 

As of March 31, 2016, there were 2,792,149 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 award 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 award forfeited.

 

The Company granted 151,469 and 139,300 performance-based RSUs during the nine months ended March 31, 2015 and 2016, respectively. These performance-based RSUs 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.