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SHARE-BASED COMPENSATION

The Company maintains a share-based compensation plan, the 2010 Employee, Director and Consultant Equity Incentive Plan, as amended (the “2010 Plan”), that has been approved by the Company’s shareholders. The 2010 Plan allows the Company, under the direction of the Compensation Committee of the Board of Directors, to make grants of stock options, restricted and unrestricted stock awards and other stock-based awards to employees, consultants and directors. On December 3, 2015, the shareholders approved an amendment to the 2010 Plan to add 1.6 to the number of shares of common stock available for grant. At December 30, 2015, 2.3 shares of common stock were available for issuance. If an option or RSU issued or awarded under the 2010 Plan is cancelled or expires without the issuance of shares of common stock, the unissued or reacquired shares, which were subject to the option or RSU, shall again be available for issuance pursuant to the 2010 Plan. In addition, as of December 31, 2015, the Company may grant up to 2.5 additional shares of common stock under the 2010 Plan if options previously granted under the Company’s terminated 2003 Employee, Director and Consultant Option Plan are cancelled or expire without the issuance of shares of common stock by the Company.

The number of shares, terms, and vesting period of awards under the 2010 Plan are determined by the Compensation Committee of the Board of Directors for each equity award. Stock options granted under the plan prior to December 5, 2012 generally vest ratably over four years and expire ten years from the grant date. Stock options granted after December 5, 2012 generally vest ratably over four years and expire eight years from the grant date. The exercise price of options granted is equivalent to the fair market value of the stock on the grant date. In September 2014, the Company began issuing restricted stock units (“RSUs”) which generally vest ratably over four years on the anniversary date of the grant in lieu of stock options to employees and directors. Beginning in fiscal 2016, RSUs issued will generally vest ratably over four years from the last day of the month in which the RSU award is granted. The number of RSUs awarded to certain executive officers may be reduced if certain additional financial performance metrics are not met.

Stock Options

A summary of the stock option activity under the Company’s plans for the six months ended December 31, 2015 is as follows:


	Number of shares			Weighted average exercise price
Options outstanding at June 30, 2015		12.5		$	23.49
Options granted		—		$	—
Less:
Options exercised		(4.0	)	$	21.38
Options canceled or expired		—		$	—

Options outstanding at December 31, 2015		8.5		$	24.50

Options exercisable at December 31, 2015		6.9		$	24.00

As of December 31, 2015, there was $10.8 of total unrecognized share-based compensation expense related to stock options that will be recognized over a weighted-average period of 1.34 years.

Restricted Stock Units

A summary of the RSU activity under the Company’s plans for the six months ended December 31, 2015 is as follows:


	Number of shares			Weighted average grant date fair value
RSUs outstanding at June 30, 2015		1.0		$	37.63
RSUs granted		0.8		$	40.66
Less:
RSUs vested		(0.3	)	$	39.74
RSUs canceled		—		$	—

RSUs outstanding at December 31, 2015		1.5		$	38.80

As of December 31, 2015, there was $39.0 of total unrecognized share-based compensation expense related to RSUs that will be recognized over a weighted-average period of 2.79 years.

This unrecognized compensation expense is equal to the fair value of RSUs expected to vest.

Employee Stock Purchase Plan

The Company also has an Employee Stock Purchase Plan that was approved by shareholders in 2012 (the “2012 Purchase Plan”), under which 2.0 shares of common stock have been authorized. Shares are issued under the 2012 Purchase Plan twice yearly at the end of each offering period. As of December 31, 2015, approximately 0.7 shares of common stock have been issued under the 2012 Purchase Plan.

Share-Based Compensation Expense

Share-based compensation expense recognized and included in the condensed consolidated statements of income and comprehensive income was allocated as follows:


	Three months ended December 31,				Six months ended December 31,
	2015		2014		2015		2014
Cost of molecular diagnostic testing	$	0.3	$	0.2	$	0.5	$	0.4
Cost of pharmaceutical and clinical services		0.1		0.1		0.2		0.3
Research and development expense		1.2		1.3		2.8		2.0
Selling, general, and administrative expense		6.1		10.5		12.8		16.3

Total share-based compensation expense	$	7.7	$	12.1	$	16.3	$	19.0