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STOCK-BASED COMPENSATION (Tables)
12 Months Ended
Jun. 30, 2016
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]  
Schedule of Restricted Stock Units
The following table includes information related to restricted stock unit awards for the year ended June 30, 2016:
 
Number of Shares
Weighted Average Fair Value at Grant Date
Outstanding at June 30, 2015
819,091

$
28.15

Granted
255,780

$
35.10

Vested
(630,818
)
$
27.17

Forfeited
(40,936
)
$
30.33

Outstanding at June 30, 2016
403,117

$
33.86

Schedule of Performance Share Awards
The following table includes information related to performance share awards for the year ended June 30, 2016:
 
Number of Shares
Weighted Average Fair Value at Grant Date
Outstanding at June 30, 2015
1,091,868

$
28.19

Granted
380,349

$
35.50

Vested (a) 

$

Forfeited
(28,509
)
$
32.93

Outstanding at June 30, 2016
1,443,708

$
30.02


(a)
As of June 30, 2016, 815,016 performance shares vested but were subject to approval by the Compensation Committee of the Company's Board of Directors. These shares were included in the number of awards outstanding at June 30, 2016. The distribution of vested shares was approved on August 10, 2016 and distributed on August 23, 2016, on which date the classification of the shares was changed from outstanding to vested.
Schedule of Stock Options Awards
The following table includes information related to stock options for the year ended June 30, 2016:
 
Number of Options
Weighted Average Exercise Price
Outstanding at June 30, 2015
2,643,078

$
28.24

Granted
863,717

$
35.47

Exercised
(129,458
)
$
27.44

Forfeited
(62,676
)
$
34.16

Outstanding at June 30, 2016
3,314,661

$
30.04

 
 
 
Outstanding and exercisable at June 30, 2016
2,074,973

$
27.51

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 a Black-Scholes option pricing model, applying the following assumptions, and amortizes expense over the option's vesting period using the straight-line attribution approach:
 
June 30,
 
2016
2015
2014
Expected life (a)
6 years
6 years
6 years
Expected dividend (b)
Expected volatility (c)
32.7% - 33.5%
34.8% - 39.5%
42.0%
Risk-free interest rate (d)
1.15% - 1.82%
1.66% - 1.89%
1.71%
Weighted average option grant date fair value
$11.11 - $12.40
$12.82 - $14.15
$11.46
(a)
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.
(b)
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.
(c)
The expected volatility rate is based on the observed historical volatilities of comparable companies.
(d)
The risk-free interest rate was interpolated from the five-year and seven-year United States Treasury constant maturity market yield as of the date of the grant.