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STOCK-BASED COMPENSATION | 3 Months Ended
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Sep. 30, 2016
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] |
STOCK-BASED COMPENSATION | (13) STOCK-BASED COMPENSATION Stock-based compensation expense is recognized over the requisite service period, which generally equals the stated vesting period. Pre-tax stock-based compensation expense was $5.8 million and $13.5 million, for the three months ended September 30, 2016 and 2015, respectively, with a resulting deferred tax benefit of $2.2 million and $5.1 million, respectively, calculated at a rate of 38%, which represents the expected effective income tax rate at the time of the compensation expense deduction primarily at PHSI, and differs from the Company's current effective income tax rate which includes the impact of partnership income not subject to federal and state income taxes. At September 30, 2016, there was $50.9 million of unrecognized stock-based compensation expense related to non-vested awards that will be amortized over 2.20 years. Premier 2013 Equity Incentive Plan The Premier 2013 Equity Incentive Plan, as amended (the "2013 Equity Incentive Plan"), provides for grants of up to 11,260,783 shares of Class A common stock, all of which are eligible to be issued as non-qualified stock options, incentive stock options, stock appreciation rights, restricted stock, restricted stock units or performance awards. As of September 30, 2016, there were 4,601,849 shares available for grant under the 2013 Equity Incentive Plan. Restricted Stock. Restricted stock units ("RSU") and restricted stock awards ("RSA") issued and outstanding generally vest over a three-year period for employees and a one-year period for directors. The following table includes information related to restricted stock awards for the three months ended September 30, 2016:
| Number of Awards | Weighted Average Fair Value at Grant Date
Outstanding at June 30, 2016 | 403,117 |  | $ | 33.86 |
Granted | 194,744 |  | $ | 31.66 |
Vested | (12,191 | ) | $ | 32.72 |
Forfeited | (18,241 | ) | $ | 33.83 |
Outstanding at September 30, 2016 | 567,429 |  | $ | 33.14 |
At September 30, 2016, there was $12.3 million of unrecognized stock-based compensation expense related to non-vested awards that will be amortized over 2.20 years. Performance Share Awards. Performance share awards issued and outstanding generally vest over three years if performance targets are met. The following table includes information related to performance share awards for the three months ended September 30, 2016:
| Number of Awards | Weighted Average Fair Value at Grant Date
Outstanding at June 30, 2016 | 1,443,708 |  | $ | 30.02 |
Granted | 853,395 |  | $ | 29.69 |
Vested | (1,181,820 | ) | $ | 27.00 |
Forfeited | (34,255 | ) | $ | 33.81 |
Outstanding at September 30, 2016 | 1,081,028 |  | $ | 32.94 |
At September 30, 2016, there was $25.2 million of unrecognized stock-based compensation expense related to non-vested awards that will be amortized over 2.26 years. Stock Options. Stock options have a term of 10 years from the date of grant. Vested stock options will expire either after 12 months of an employee's termination with Premier or immediately upon an employee's termination with Premier, depending on the termination circumstances. Stock options generally vest in equal annual installments over three years. The following table includes information related to stock options for the three months ended September 30, 2016:
| Number of Options | Weighted Average Exercise Price
Outstanding at June 30, 2016 | 3,314,661 |  | $ | 30.04 |
Granted | 477,848 |  | $ | 31.66 |
Exercised | (83,880 | ) | $ | 27.71 |
Forfeited | (45,175 | ) | $ | 34.00 |
Outstanding at September 30, 2016 | 3,663,454 |  | $ | 30.26 |
Outstanding and exercisable at September 30, 2016 | 2,466,974 |  | $ | 28.74 |
The aggregate intrinsic value of stock options outstanding at September 30, 2016 was $10.3 million. The aggregate intrinsic value of stock options outstanding and exercisable at September 30, 2016 was $9.9 million. The aggregate intrinsic value of stock options expected to vest at September 30, 2016 was $0.5 million. The intrinsic value of stock options exercised during the three months ended September 30, 2016 was $0.4 million. At September 30, 2016, there was $13.4 million of unrecognized stock-based compensation expense related to stock options that will be amortized over 2.07 years. The Company estimates the fair value of each stock option on the date of grant using a Black-Scholes option-pricing model, applying the following assumptions and amortizes expense over the option's vesting period using the straight-line attribution approach:
| September 30,
| 2016 | 2015
Expected life (a) | 6 years | 6 years
Expected dividend (b) | — | —
Expected volatility (c) | 33.0% | 32.7%
Risk-free interest rate (d) | 1.31% | 1.74%
Weighted average option grant date fair value | $10.80 | $12.40
(a) | The six-year expected life (estimated period of time outstanding) of stock options granted was estimated using the "Simplified Method" which utilizes the midpoint between the vesting date and the end of the contractual term. This method was utilized for the stock options due to the lack of historical exercise behavior of Premier's employees.
(b) | No dividends are expected to be paid over the contractual term of the stock options granted, resulting in the use of a zero expected dividend rate.
(c) | The expected volatility rate is based on the observed historical volatilities of comparable companies.
(d) | The risk-free interest rate was interpolated from the five-year and seven-year United States Treasury constant maturity market yield as of the date of the grant.

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- Definition The entire disclosure for compensation-related costs for equity-based compensation, which may include disclosure of policies, compensation plan details, allocation of equity compensation, incentive distributions, equity-based arrangements to obtain goods and services, deferred compensation arrangements, employee stock ownership plan details and employee stock purchase plan details. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 718 -SubTopic 40 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=65895303&loc=d3e17540-113929 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 505 -SubTopic 50 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=68057994&loc=d3e25284-112666 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 718 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SAB Topic 14) -URI http://asc.fasb.org/extlink&oid=27013229&loc=d3e301413-122809 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 718 -SubTopic 10 -Section 50 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=6415400&loc=d3e5070-113901 Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 718 -SubTopic 10 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=6415400&loc=d3e5047-113901 Reference 6: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 718 -SubTopic 10 -Section 50 -Paragraph 4 -URI http://asc.fasb.org/extlink&oid=6415400&loc=d3e5444-113901 + Details
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