Stock-Based Compensation (Tables)

12 Months Ended

Jun. 30, 2015

Disclosure of Compensation Related Costs, Share-based Payments [Abstract]

Restricted stock unit awards issued and outstanding generally vest over a three-year period. The following table includes information related to restricted stock unit awards for the year ended June 30, 2015:



	Number of Shares		Weighted Average Fair Value at Grant Date
Outstanding at June 30, 2014	717,304		$	27.29
Granted	160,425		$	31.86
Vested	(23,151	)	$	28.14
Forfeited	(35,487	)	$	27.67
Outstanding at June 30, 2015	819,091		$	28.15

Schedule of Performance Share Awards

Performance share awards issued and outstanding generally vest over three years if performance targets are met. The following table includes information related to performance share awards for the year ended June 30, 2015:



	Number of Shares		Weighted Average Fair Value at Grant Date
Outstanding at June 30, 2014	827,174		$	27.00
Granted	278,123		$	31.75
Vested	—		$	—
Forfeited	(13,429	)	$	28.65
Outstanding at June 30, 2015	1,091,868		$	28.19

Schedule of Stock Options Awards

Stock options have a term of 10 years from the date of grant; however, vested stock options will expire either after 12 months of an employee's termination with Premier or immediately upon an employee's termination with Premier, depending on the termination circumstances. Stock options generally vest in three equal annual installments over three years. The following table includes information related to stock options for the year ended June 30, 2015:



	Number of Options		Weighted Average Exercise Price
Outstanding at June 30, 2014	2,047,484		$	27.00
Granted	674,078		$	31.92
Exercised	(55,866	)	$	27.00
Forfeited	(22,618	)	$	29.26
Outstanding at June 30, 2015	2,643,078		$	28.24

Outstanding and exercisable at June 30, 2015	1,309,785		$	27.01

Schedule of Fair Value using Black-Scholes Option Pricing Model

The Company estimates the fair value of each stock option on the date of grant using the Black-Scholes option pricing model, applying the following assumptions, and amortizes expense over the option's vesting period using the straight-line attribution approach:



For options granted during the year ended:	June 30, 2015	June 30, 2014
Expected life ⁽¹⁾	6 years	6 years
Expected dividend ⁽²⁾	—	—
Expected volatility ⁽³⁾	34.8% - 39.5%	42.00		%
Risk-free interest rate ⁽⁴⁾	1.66% - 1.89%	1.71		%
Weighted average option grant date fair value	$12.82 - $14.15	$	11.46

(1) The six-year expected life (estimated period of time outstanding) of stock options granted was estimated using the "Simplified Method" which utilizes the midpoint between the vesting date and the end of the contractual term. This method was utilized for the stock options due to the lack of historical exercise behavior of Premier's employees.

(2) No dividends are expected to be paid over the contractual term of the stock options granted, resulting in the use of a zero expected dividend rate.

(3) The expected volatility rate is based on the observed historical volatilities of comparable companies.

(4) The risk-free interest rate was interpolated from the five-year and seven-year United States constant maturity market yield as of the date of the grant.