STOCK-BASED COMPENSATION

3 Months Ended

Sep. 30, 2019

Share-based Payment Arrangement [Abstract]

(13) STOCK-BASED COMPENSATION

Stock-based compensation expense is recognized over the requisite service period, which generally equals the stated vesting period. The associated deferred tax benefit was calculated at a rate of 26% and 25% for the three months ended September 30, 2019 and 2018, respectively, 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. See Note 14 - Income Taxes for further information.

Stock-based compensation expense and the resulting deferred tax benefits were as follows (in thousands):



	Three Months Ended September 30,
	2019		2018
Pre-tax stock-based compensation expense ^(a)	$	3,704	$	6,091
Deferred tax benefit	959		1,504
Total stock-based compensation expense, net of tax	$	2,745	$	4,587


(a)	Pre-tax stock based compensation expense attributable to discontinued operations of $0.1 million for the three months ended September 30, 2018 is not included in the above table.

Premier 2013 Equity Incentive Plan

The Premier 2013 Equity Incentive Plan, as amended and restated (and including any further amendments thereto, the "2013 Equity Incentive Plan") provides for grants of up to 14.8 million 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 share awards. As of September 30, 2019, there were 6.0 million shares available for grant under the 2013 Equity Incentive Plan.

The following table includes information related to restricted stock, performance share awards and stock options for the three months ended September 30, 2019:



	Restricted Stock				Performance Share Awards				Stock Options
	Number of Awards		Weighted Average Fair Value at Grant Date		Number of Awards		Weighted Average Fair Value at Grant Date		Number of Options		Weighted Average Exercise Price
Outstanding at June 30, 2019	589,550		$	37.06	1,439,815		$	36.38	2,798,673		$	30.22
Granted	276,406		$	36.61	697,870		$	36.23	—		$	—
Vested/exercised	(161,505	)	$	32.07	(493,759	)	$	31.58	(65,999	)	$	31.67
Forfeited	(12,071	)	$	39.71	(25,246	)	$	40.03	(9,500	)	$	32.62
Outstanding at September 30, 2019	692,380		$	38.00	1,618,680		$	37.73	2,723,174		$	30.18

Stock options outstanding and exercisable at September 30, 2019									2,572,310		$	30.04

Restricted stock units and restricted stock awards issued and outstanding generally vest over a three-year period for employees and a one-year period for directors. Performance share awards issued and outstanding generally vest over a three-year period if performance targets are met. Stock options have a term of ten years from the date of grant. Vested stock options will expire either twelve months after 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.

Unrecognized stock-based compensation expense at September 30, 2019 was as follows (in thousands):



	Unrecognized Stock-Based Compensation Expense		Weighted Average Amortization Period
Restricted stock	$	17,826	2.4 years
Performance share awards	39,619		2.3 years
Stock options	1,452		0.9 years
Total unrecognized stock-based compensation expense	$	58,897	2.2 years

The aggregate intrinsic value of stock options at September 30, 2019 was as follows (in thousands):



	Intrinsic Value of Stock Options
Outstanding and exercisable	$	2,513
Expected to vest	2
Total outstanding	$	2,515

Exercised during the three months ended September 30, 2019	$	394