Share-Based Compensation (Tables)

12 Months Ended

Jun. 30, 2017

Disclosure of Share-based Compensation Arrangements by Share-based Payment Award

Total share-based compensation included as a component of selling, general, and administrative expenses in our Consolidated Income Statements was as follows:



	Fiscal Year Ended June 30,
	2017		2016		2015
	(in thousands)
Share-based compensation related to:
Equity classified stock options	$	1,356	$	1,479	$	1,480
Equity classified restricted stock	5,246		5,614		5,042
Total share-based compensation	$	6,602	$	7,093	$	6,522

Weighted Average Assumptions for the Options Granted During the Following Fiscal Years

The Company used the following weighted-average assumptions for the options granted during the following fiscal years:



	Fiscal Year Ended June 30,
	2017			2016			2015
Expected term	5 years			4.02 years			4.02 years
Expected volatility	30.88		%	28.70		%	30.06		%
Risk-free interest rate	1.84		%	1.47		%	1.22		%
Dividend yield	0.00		%	0.00		%	0.00		%
Weighted-average fair value per option	$	11.26		$	9.53		$	10.51

Stock Option Plans

A summary of our stock option plans is presented below:



	Fiscal Year Ended June 30, 2017
	Options		Weighted- Average Exercise Price		Weighted- Average Remaining Contractual Life	Aggregate Intrinsic Value
Outstanding, beginning of year	1,098,165		$	36.52
Granted during the period	77,339		37.00
Exercised during the period	(300,590	)	33.40
Canceled, forfeited, or expired during the period	(1,925	)	39.12
Outstanding, end of year	872,989		37.63		5.81	$	2,759,060
Vested and expected to vest at June 30, 2017	872,187		37.63		5.81	$	2,756,896
Exercisable, end of year	657,019		$	37.35	4.92	$	2,321,846

Unvested Shares

A summary of the status of the Company’s shares subject to unvested options is presented below:



	Fiscal Year Ended June 30, 2017
	Options		Weighted Average Exercise Price		Weighted Average Grant Date Fair- Value
Unvested, beginning of year	278,495		$	39.96	$	10.27
Granted	77,339		37.00		11.26
Vested	(138,214	)	40.61		10.60
Canceled or forfeited	(1,650	)	39.53		12.26
Unvested, end of year	215,970		$	38.48	$	10.39

Stock Options Outstanding

The following table summarizes information about stock options outstanding and exercisable as of June 30, 2017:



	Options Outstanding				Options Exercisable
Range of Exercise Prices	Shares Outstanding	Weighted Average Remaining Contractual Life	Weighted Average Exercise Price		Number Exercisable	Weighted Average Exercise Price
$18.13 - $22.27	2,800	1.43	$	18.14	2,800	$	18.14
$22.27 - $26.38	29,991	2.43	24.57		29,991	24.57
$26.38 - $30.49	20,731	5.44	29.80		20,731	29.80
$30.49 - $34.60	82,839	4.99	34.27		82,839	34.27
$34.60 - $38.71	452,179	5.48	36.97		290,360	36.62
$38.71 - $42.82	284,449	7.01	41.79		230,298	41.95
	872,989	5.81	$	37.63	657,019	$	37.35

Restricted Stock Outstanding

During the fiscal year ended June 30, 2017, the Company granted 170,368 shares of restricted stock to employees and non-employee directors, all of which were issued in the form of RSUs or PUs:



	Fiscal Year Ended June 30, 2017
	Shares granted	Date granted	Grant date fair value		Vesting period
Employees
Certain employees based on performance	207	September 2, 2016	$	35.79	Annually over 3 years
Certain employees based on promotion	2,884	September 7, 2016	$	35.73	Annually over 3 years
Certain employees based on performance	433	September 7, 2016	$	35.73	Annually over 3 years
Certain employees based on promotion	721	November 10, 2016	$	34.20	Annually over 3 years
Certain employees	151,623	December 2, 2016	$	37.00	Annually over 3 years
Non-Employee Directors⁽¹⁾
Certain Directors	14,500	December 2, 2016	$	37.00	6 months

(1) Under the 2013 Long-Term Incentive Plan, non-employee directors receive annual awards of restricted stock, as opposed to stock options. The number of shares of restricted stock to be granted is established from time to time by the Board of Directors. Currently, the number of shares of restricted stock awarded annually to each non-employee director generally is determined by dividing $100,000 by the equity award value of the common stock on the date of grant, as defined in the 2013 Long-Term Incentive Plan. The equity award value means the value per share based on a 45-day averaging of the fair market value of the common stock over a specified period of time, or the fair market value of the common stock on a specified date. These awards will generally vest in full on the day that is six months after the date of grant or upon the earlier occurrence of (i) the director’s termination of service as a director by reason of death, disability or retirement, or (ii) a change in control by the Company. The compensation expense associated with these awards will be recognized on a pro-rata basis over this period.

A summary of the status of the Company’s outstanding restricted stock is presented below:



	Fiscal Year Ended June 30, 2017
	Shares		Weighted-Average Grant Date Fair Value
Outstanding, beginning of year	274,804		$	39.06
Granted during the period	170,368		36.77
Target shares adjustment during the period ⁽¹⁾	(1,008	)	34.80
Vested during the period	(137,894	)	40.07
Cancelled, forfeited, or expired during the period	(38,884	)	38.18
Outstanding, end of year	267,386		$	37.86

(1) These target shares granted as RSUs during fiscal year 2015 have service based and performance based vesting conditions. The actual number of shares granted for each of the three tranches, for the period June 1, 2014 through June 30, 2017, is determined after the date of the Company's financial statements. Therefore, the adjustment recognized during fiscal year 2017 represents the variance between the shares assumed to be granted versus at June 30, 2016 the actual shares granted for the second tranche.