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Stockholders' Equity

3 Months Ended

Sep. 30, 2021

Stockholders' Equity

Stockholders' Equity

8. Stockholders’ Equity

Stock-based Compensation

As of September 30, 2021, 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 September 30,
		2020			2021
Cost of goods sold		$	179		$	206
Selling, general and administrative			5,785			6,767
Research and development			145			140
Stock-based compensation expense		$	6,109		$	7,113

As of September 30, 2021, total unrecognized compensation cost related to share-based compensation grants under the OSI Plans were estimated at $0.4 million for stock options and $31.8 million for restricted stock units (“RSUs”). We expect to recognize these costs over a weighted average period of 1.7 years with respect to the stock options and 1.6 years for grants of RSUs.

The following summarizes stock option activity during the three months ended September 30, 2021:


				Weighted
				Average			Weighted-Average		Aggregate
		Number of		Exercise			Remaining Contractual		Intrinsic Value
		Options		Price			Term		(in thousands)
Outstanding at June 30, 2021		255,220		$	50.24
Granted		—			—
Exercised		(162,393)			34.08
Expired or forfeited		(383)			78.14
Outstanding at September 30, 2021		92,444			78.51		6.1 years		$	1,590
Exercisable at September 30, 2021		58,840			74.44		4.6 years			1,226

The following summarizes RSU award activity during the three months ended September 30, 2021:


				Weighted-
				Average
		Shares		Fair Value
Nonvested at June 30, 2021		435,925		$	84.16
Granted		306,349			89.92
Vested		(310,077)			82.58
Forfeited		(1,548)			82.43
Nonvested at September 30, 2021		430,649		$	89.40

In December 2020, our shareholders authorized an increase of 1.65 million shares for the 2012 Plan resulting in a maximum pool of 7.1 million shares. As of September 30, 2021, there were approximately 1.5 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 136,242 and 96,620 performance-based RSUs during the three months ended September 30, 2020 and 2021, 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 400% of the original number of shares or units awarded. Compensation cost associated with these performance based RSUs are recognized based on the estimated number of shares that we ultimately expect will vest. If the estimated number of shares to vest is revised in the future, then stock-based compensation expense will be adjusted accordingly.

Stock Repurchase Program

Our Board of Directors has authorized a share repurchase program of up to 3,000,000 shares of common stock. 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 in our consolidated financial statements as a reduction in the number of shares of common stock issued and outstanding.

During the three months ended September 30, 2021, we repurchased 168,506 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.