XML 34 R21.htm IDEA: XBRL DOCUMENT v3.22.4
STOCK-BASED COMPENSATION
 12 Months Ended
Jun. 30, 2022
Share-Based Payment Arrangement [Abstract]  
STOCK-BASED COMPENSATION
(14) 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 25% for the years ended June 30, 2022 and 2020 and 26% for the year ended June 30, 2021, which represents the expected effective income tax rate at the time of the compensation expense deduction and differs from the Company’s current effective income tax rate. See Note 16 - Income Taxes for further information.
Stock-based compensation expense and the resulting deferred tax benefits were as follows (in thousands):
Year Ended June 30,
202220212020
Pre-tax stock-based compensation expense$46,229 $35,425 $20,706 
Deferred tax benefit (a)
8,787 6,167 3,014 
Total stock-based compensation expense, net of tax$37,442 $29,258 $17,692 
_________________________________
(a)For the years ended June 30, 2022 and 2021, the deferred tax benefit was reduced by $3.0 million attributable to stock-based compensation expense that is nondeductible for tax purposes pursuant to Section 162(m) as amended by the Tax Cuts and Jobs Act of 2017.
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 June 30, 2022, there were approximately 4.7 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 year ended June 30, 2022:
Restricted StockPerformance Share AwardsStock Options
Number of AwardsWeighted Average Fair Value at Grant DateNumber of AwardsWeighted Average Fair Value at Grant DateNumber of OptionsWeighted Average Exercise Price
Outstanding at June 30, 2021990,301 $35.27 1,731,002 $35.56 2,163,006 $30.32 
Granted658,389 37.74 651,392 37.22 — — 
Vested/exercised(295,854)40.16 (588,142)43.74 (1,252,486)30.21 
Forfeited(151,706)33.96 (215,457)32.18 (14,166)36.77 
Outstanding at June 30, 20221,201,130 $35.59 1,578,795 $33.66 896,354 $30.38 
Stock options outstanding and exercisable at June 30, 2022896,354 $30.38 
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 generally expire either twelve months after an employee’s termination with the Company or 90 days after an employee’s termination with the Company, depending on the termination circumstances. Stock options generally vest in equal annual installments over three years.
Unrecognized stock-based compensation expense at June 30, 2022 was as follows (in thousands). At June 30, 2022, there was no unrecognized stock-based compensation expense for outstanding stock options.
Unrecognized Stock-Based Compensation ExpenseWeighted Average Amortization Period
Restricted stock$22,082 1.9 years
Performance share awards20,553 1.6 years
Total unrecognized stock-based compensation expense$42,635 1.8 years
The aggregate intrinsic value of stock options at June 30, 2022 was as follows (in thousands):
Intrinsic Value of Stock Options
Outstanding and exercisable$4,768 
Exercised during the year ended June 30, 20229,765