Share-Based Compensation (Tables)

12 Months Ended

Jun. 30, 2018

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,
	2018		2017		2016
	(in thousands)
Share-based compensation related to:
Equity classified stock options	$	1,184	$	1,356	$	1,479
Equity classified restricted stock	5,275		5,246		5,614
Total share-based compensation	$	6,459	$	6,602	$	7,093

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,
	2018			2017			2016
Expected term	5 years			5 years			4.02 years
Expected volatility	30.70		%	30.88		%	28.70		%
Risk-free interest rate	2.17		%	1.84		%	1.47		%
Dividend yield	0.00		%	0.00		%	0.00		%
Weighted-average fair value per option	$	10.60		$	11.26		$	9.53

Stock Option Plans

A summary of activity under our stock option plans is presented below:



	Fiscal Year Ended June 30, 2018
	Options		Weighted- Average Exercise Price		Weighted- Average Remaining Contractual Life	Aggregate Intrinsic Value
Outstanding, beginning of year	872,989		$	37.63
Granted during the period	119,132		34.27
Exercised during the period	(62,701	)	35.72
Canceled, forfeited, or expired during the period	(32,300	)	37.17
Outstanding, end of year	897,120		37.33		5.95	$	3,089,365
Vested and expected to vest at June 30, 2018	895,187		37.34		5.94	$	3,078,179
Exercisable, end of year	685,554		$	37.84	5.07	$	2,113,769

Unvested Shares

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



	Fiscal Year Ended June 30, 2018
	Options		Weighted Average Exercise Price		Weighted Average Grant Date Fair- Value
Unvested, beginning of year	215,970		$	38.48	$	10.39
Granted	119,132		34.27		10.60
Vested	(123,536	)	39.20		10.33
Unvested, end of year	211,566		$	35.69	$	10.54

Stock Options Outstanding

The following table summarizes information about stock options outstanding and exercisable as of June 30, 2018:



	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	0.43	$	18.14	2,800	$	18.14
$22.27 - $26.38	25,000	1.43	24.57		25,000	24.57
$26.38 - $30.49	20,731	4.44	29.80		20,731	29.80
$30.49 - $34.60	197,971	7.17	34.21		82,839	34.27
$34.60 - $38.71	371,169	5.67	37.04		274,735	36.87
$38.71 - $42.82	279,449	6.02	41.83		279,449	41.83
	897,120	5.95	$	37.33	685,554	$	37.84

Restricted Stock Outstanding

During the fiscal year ended June 30, 2018, the Company granted 138,665 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, 2018
	Shares granted	Date granted	Grant date fair value		Vesting period
Employees
Certain employees based on performance	92,469	December 8, 2017	$	34.35	Annually over 3 years
Certain employees based on performance⁽¹⁾	31,296	February 1, 2018	$	34.95	January 1, 2018 through December 31, 2020
Non-Employee Directors⁽²⁾
Certain Directors	500	September 11, 2017	$	37.75	6 months
Certain Directors	14,400	December 8, 2017	$	34.35	6 months

(1) The RSU's granted on February 1, 2018 contains both service and performance-based vesting conditions for the period January 1, 2018 through December 31, 2020 (the "performance cycle") as determined by the Compensation Committee of the Company's Board of Directors. The total number for target shares granted could differ from the actual shares vested at the conclusion of the performance cycle. See the Company's 2018 Proxy Statement for more information about these grants.

(2) 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, 2018
	Shares		Weighted-Average Grant Date Fair Value
Outstanding, beginning of year	267,386		$	37.86
Granted during the period	138,665		34.50
Target shares adjustment during the period ⁽¹⁾	(216	)	36.33
Vested during the period	(146,046	)	38.16
Cancelled, forfeited, or expired during the period	(6,270	)	34.77
Outstanding, end of year	253,519		$	35.93

(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 2018 represents the variance between the shares assumed to be granted versus at June 30, 2017 the actual shares granted for the third tranche.