STOCK-BASED COMPENSATION (Tables)

3 Months Ended

Sep. 30, 2016

Disclosure of Compensation Related Costs, Share-based Payments [Abstract]

Schedule Restricted Stock Unit Award Activity

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

Schedule of Performance Share Award Activity

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

Schedule of Stock Option Activity

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

Assumptions Used for Determining the Fair Value of Stock Options Granted

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.