SHARE-BASED COMPENSATION

6 Months Ended

Dec. 31, 2012

SHARE-BASED COMPENSATION

SHARE-BASED COMPENSATION

6.             SHARE-BASED COMPENSATION

Employee Stock Purchase Plan

The 2008 Employee Stock Purchase Plan (the “2008 ESPP”) provides that eligible employees are able to contribute up to 10% of their eligible earnings towards the quarterly purchase of the Company’s common stock. The employee’s purchase price is equal to 85% of the fair market value. During the six months ended December 31, 2012 and 2011, employees purchased 39,777 shares and 40,085 shares of common stock for approximately $1.5 million and $1.2 million, respectively, under the 2008 ESPP.

Share-Based Award Plans

Stock option activity as of and for the six months ended December 31, 2012 is summarized below:

			Weighted Average
	Shares		Exercise Price		Remaining Contractual Term	Aggregate Intrinsic Value
	(in 000s)		(per share)		(years)	(in 000s)
Balance outstanding as of June 30, 2012	2,545		$	26.40		$	51,655
Granted	10		46.97
Exercised	(664	)	22.61
Forfeited or expired	(20	)	31.56
Balance outstanding as of December 31, 2012	1,871		$	27.79	2.81	$	31,828
Exercisable as of December 31, 2012	1,506		$	25.40	2.29	$	29,204

Restricted stock and RSU activity as of and for the six months ended December 31, 2012 is summarized below:

	Restricted Stock		Weighted Average Grant Date Fair Value		RSUs		Weighted Average Grant Date Fair Value
	(in 000s)		(per share)		(in 000s)		(per share)
Balance outstanding as of June 30, 2012	568		$	41.31	570		$	17.69
Granted	113		46.88		66		45.40
Vested / Released	(52	)	37.02		(570	)	17.69
Forfeited or expired	(10	)	37.28		—		—
Balance outstanding as of December 31, 2012	619		$	42.76	66		$	45.40

Share-Based Compensation

The following table presents share-based compensation expense and related effect of the income tax benefit included in the Company’s unaudited condensed consolidated statements of operations:

	Three Months Ended December 31,					Six Months Ended December 31,
	2012			2011		2012			2011
	(in 000s)
Selling, general and administrative	$	2,048		$	2,731	$	4,027		$	5,153
Research and development costs	1,148			1,095		2,184			2,022
Cost of gaming equipment and systems and gaming operations	(60		)	64		(54		)	107
Share-based compensation expense before tax	3,136			3,890		6,157			7,282
Income tax benefit	1,098			1,362		2,155			2,549
Net share-based compensation expense	$	2,038		$	2,528	$	4,002		$	4,733

As of December 31, 2012, there was $4.9 million of total unrecognized compensation expense related to the unvested portion of stock options which will be recognized over the subsequent 1.52 years. In addition, as of December 31, 2012, there was $23.8 million of total unrecognized compensation expense related to the unvested portion of restricted stock and RSUs which will be recognized over the subsequent 1.97 years.