13.	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 1, 2016, the shareholders approved an amendment to the 2010 Plan to add 2.5 to the number of shares of common stock available for grant. As of June 30, 2017, a total of 2.8 shares of common stock are available for issuance under the 2010 Plan. In addition, as of June 30, 2017, the Company may grant up to 2.3 additional shares under the 2010 Plan if options previously granted under the Company’s terminated 2003 Employee, Director and Consultant Option Plan are cancelled or expire in the future without the issuance of shares of common stock by the Company. The exercise price of options granted in 2017, 2016 and 2015 was equivalent to the fair market value of the stock at the date of grant. The number of shares, terms, and vesting periods are determined by the Company’s board of directors or a committee thereof on an option-by-option basis. Options generally vest ratably over service periods of four years. Options granted after December 5, 2012 expire eight years from the date of grant, and options granted prior to that date generally expire ten years from the date of grant. In September 2014, the Company began issuing restricted stock units (“RSUs”) in lieu of stock options. RSUs generally vest ratably over four years on the anniversary date of the grant to all employees. The number of RSUs awarded to certain executive officers may be reduced if certain additional performance metrics are not met. Options and restricted stock units granted to our non-employee directors vest in full upon the earlier of (i) one full year of service on the Board following date of grant or (ii) the date of the next annual meeting of stockholders.

Stock Options

A summary of option activity is as follows for the fiscal years ended June 30:

	2017					2016					2015
				Weighted					Weighted					Weighted
	Number			average		Number			average		Number			average
	of			exercise		of			exercise		of			exercise
	shares			price		shares			price		shares			price
Options outstanding at beginning of year		8.2		$	24.52		12.5		$	23.49		14.2		$	23.30
Options granted		—		$	—		—		$	—		—		$	—
Less:
Options exercised		(0.1	)	$	14.81		(4.3	)	$	21.51		(1.2	)	$	20.17
Options canceled or expired		(0.1	)	$	26.55		—		$	—		(0.5	)	$	25.98
Options outstanding at end of year		8.0		$	24.67		8.2		$	24.52		12.5		$	23.49
Options exercisable at end of year		7.5		$	24.55		6.7		$	24.04		9.6		$	22.80
Options vested and expected to vest		8.0		$	24.67		8.2		$	24.52		12.5		$	23.49
Weighted average fair value of options granted during the year		—		$	—		—		$	—		—		$	—

The following table summarizes information about stock options outstanding at June 30, 2017:

	Options outstanding						Options exercisable
	Number		Weighted				Number
	outstanding		average		Weighted		exercisable		Weighted
Range of	at		remaining		average		at		average
exercise	June 30,		contractual		exercise		June 30,		exercise
prices	2017		life (years)		price		2017		price
13.28 - 21.66		2.1		3.73	$	18.66		2.1	$	18.66
21.73 - 26.49		3.2		3.72		25.42		2.7		25.23
27.07 - 30.12		2.2		4.39		27.81		2.2		27.81
30.34 - 37.73		0.5		2.27		30.46		0.5		30.44
		8.0		3.81	$	24.67		7.5	$	24.55

Options exercisable at June 30, 2017 had a weighted average remaining contractual life of 3.8 years.

As of June 30, 2017, there was $1.0 of total unrecognized share-based compensation expense related to stock options that will be recognized over a weighted-average period of 0.2 years.

Restricted Stock Units

A summary of RSU activity is as follows:

	2017					2016
				Weighted					Weighted
	Number			average		Number			average
	of			grant date		of			grant date
	shares			fair value		shares			fair value
RSUs outstanding at the beginning of year		1.4		$	38.76		1.0		$	37.63
RSUs granted		1.1			21.47		0.8			40.62
Less:
RSUs released		(0.4	)		22.20		(0.4	)		39.74
RSUs canceled		(0.1	)		33.00		—			—
RSUs outstanding at end of year		2.0		$	33.02		1.4		$	38.76

As of June 30, 2017, there was $31.3 of total unrecognized share-based compensation expense related to RSUs that will be recognized over a weighted-average period of 2.0 years.

Share-based compensation expense recognized and included in the consolidated statements of operations for the fiscal years ended June 30, 2017, 2016 and 2015 were as follows:

	Years Ended June 30,
	2017		2016		2015
Cost of molecular diagnostic testing	$	0.9	$	0.9	$	0.9
Cost of pharmaceutical and clinical services		0.3		0.4		0.5
Research and development expense		5.8		5.4		4.3
Selling, general, and administrative expense		22.9		24.9		40.0
Total share-based compensation expense	$	29.9	$	31.6	$	45.7

In February 2015, the Company and its former Chief Executive Officer entered into a resignation agreement under which the vesting of certain awards were modified such that the specified awards were accelerated. As a result of this award modification the Company recognized approximately $12.8 in share-based compensation expense for year ended June 30, 2015.

The Company has unrecognized share-based compensation cost related to share-based compensation granted under its current plans. The estimated unrecognized share-based compensation cost and related weighted average recognition period, aggregate intrinsic value of options outstanding, aggregate intrinsic value of options that are fully vested and aggregate intrinsic value of RSUs vested and expected to vest is as follows:

	As of
	June 30, 2017
Unrecognized share-based compensation cost	$	32.3
Aggregate intrinsic value of options outstanding		17.4
Aggregate intrinsic value of options fully vested		17.4
Aggregate intrinsic value of RSUs outstanding	$	52.5

The total intrinsic value of options exercised during 2017, 2016 and 2015 was as follows:

	Years Ended June 30,
	2017		2016		2015
Total intrinsic value of options exercised	$	0.9	$	86.1	$	20.5

Employee Stock Purchase Plan

The Company had an Employee Stock Purchase Plan that was approved by shareholders in 1995 (the “1995 Purchase Plan”), and subsequently amended, under which 2.0 shares of common stock had been authorized. As of December 5, 2012, a total of 2.0 shares of common stock had been issued under the 1995 Purchase Plan when it was terminated. On December 5, 2012, following shareholder approval, the Company adopted the 2012 Employee Stock Purchase Plan (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. At June 30, 2017, a total of 0.7 shares of common stock had been purchased under the 2012 Plan. Shares purchased under and compensation expense associated with the 1995 and 2012 Plans for the years reported are as follows:

	Years Ended June 30,
	2017		2016		2015
Shares purchased under the plans		0.5		0.2		0.2
Plan compensation expense	$	2.3	$	1.9	$	1.8

On June 1, 2017 there was an amendment to the 2012 Purchase Plan such that the plan is non-compensatory. As of June 30, 2017, there is no unrecognized share-based compensation expense related to the 2012 Purchase Plan.

The fair value of shares issued under the Plan that was in effect for each period reported was calculated using the Black‑Scholes option-pricing model using the following weighted-average assumptions:

	2017		2016		2015
Risk-free interest rate		0.6%		0.4%		0.1%
Expected dividend yield		0%		0%		0%
Expected lives (in years)		0.5		0.5		0.5
Expected volatility		72%		31%		33%