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Stockholders' Equity

9 Months Ended

Mar. 31, 2020

Stockholders' Equity

Stockholders' Equity

7. Stockholders’ Equity

Stock-based Compensation

As of March 31, 2020, we maintained the Amended and Restated 2012 Incentive Award Plan (the "2012 Plan ") and the Amended and Restated 2006 Equity Participation Plan ("2006 Plan") as stock-based employee compensation plans. No further grants may be made under the 2006 Plan. The 2012 Plan and the 2006 Plan are collectively referred to as the "OSI Plans."

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


		Three Months Ended March 31,						Nine Months Ended March 31,
		2019			2020			2019			2020
Cost of goods sold		$	182		$	189		$	539		$	517
Selling, general and administrative			5,543			5,520			18,487			17,153
Research and development			163			129			488			427
Stock-based compensation expense		$	5,888		$	5,838		$	19,514		$	18,097

As of March 31, 2020, total unrecognized compensation cost related to share-based compensation grants under the OSI Plans were estimated at $0.5 million for stock options and $18.9 million for RSUs. We expect to recognize these costs over a weighted average period of 2.0 years with respect to the stock options and 1.9 years for grants of RSUs.

The following summarizes stock option activity during the nine months ended March 31, 2020:


				Weighted Average			Weighted-Average		Aggregate
		Number of		Exercise			Remaining Contractual		Intrinsic Value
		Options		Price			Term		(in thousands)
Outstanding at June 30, 2019		515,884		$	33.74
Granted		13,263			101.31
Exercised		(201,003)			20.45
Expired or forfeited		(1,092)			85.37
Outstanding at March 31, 2020		327,052			44.47		2.7 years		$	8,867
Exercisable at March 31, 2020		295,525			39.85		2.0 years			8,867

The following summarizes RSU award activity during the nine months ended March 31, 2020:


				Weighted-
				Average
		Shares		Fair Value
Nonvested at June 30, 2019		521,140		$	73.97
Granted		300,998			88.26
Vested		(388,756)			68.60
Forfeited		(13,907)			83.24
Nonvested at March 31, 2020		419,475			88.89

As of March 31, 2020, there were approximately 1.0 million shares available for grant under the 2012 Plan. Under the terms of the 2012 Plan, RSUs and restricted stock granted from the pool of shares available for grant reduce the pool by 1.87 shares for each award granted. RSUs and restricted stock forfeited and returned to the pool of shares available for grant increase the pool by 1.87 shares for each award forfeited.

We granted 97,514 and 81,621 performance-based RSUs during the nine months ended March 31, 2019 and 2020, respectively. These performance based RSU awards are contingent on the achievement of certain performance metrics. The payout related to these awards can range from zero to 280% of the original number of shares or units awarded.

Stock Repurchase Program

In March 2018, the Board of Directors authorized a stock repurchase program of up to 1,000,000 shares, which was completed during the three months ended March 31, 2020. In April 2020, the Board of Directors authorized a new share repurchase program of up to 1,000,000 shares. This program does not expire unless our Board of Directors acts to terminate the program. The timing and actual numbers of shares purchased depends on a variety of factors, including stock price, general business and market conditions and other investment opportunities. Repurchases may be made from time to time under the program through open-market purchases or privately-negotiated transactions at our discretion. Upon repurchase, the shares are restored to the status of authorized but unissued shares and we record them as a reduction in the number of shares of Common Stock issued and outstanding in our consolidated financial statements.

During the nine months ended March 31, 2020, we repurchased 562,707 shares of our common stock.

Dividends

We have not paid any cash dividends since the consummation of our initial public offering in 1997 and we do not currently intend to pay any cash dividends in the foreseeable future. Our Board of Directors will determine the payment of future cash dividends, if any. Certain of our current bank credit facilities restrict the payment of cash dividends and future borrowings may contain similar restrictions.