SHARE-BASED COMPENSATION

6 Months Ended

Dec. 31, 2013

SHARE-BASED COMPENSATION

SHARE-BASED COMPENSATION

8.             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, 2013 and 2012, employees purchased 26,056 shares and 39,777 shares of common stock for approximately $1.6 million and $1.5 million, respectively, under the 2008 ESPP.

Share-Based Award Plans

Stock option activity as of and for the six months ended December 31, 2013 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, 2013	1,170		$	29.60		$	31,391
Granted	—		—
Exercised	(219	)	34.37
Forfeited or expired	(4	)	41.35
Balance outstanding as of December 31, 2013	947		$	28.43	2.75	$	47,350
Exercisable as of December 31, 2013	751		$	25.77	2.32	$	39,567

Restricted stock and RSU/ performance stock units (“PSUs”) activity as of and for the six months ended December 31, 2013 is summarized below:

	Restricted Stock		Weighted Average Grant Date Fair Value		RSUs/PSUs		Weighted Average Grant Date Fair Value
	(in 000s)		(per share)		(in 000s)		(per share)
Balance outstanding as of June 30, 2013	571		$	43.45	82		$	45.65
Granted	67		73.62		5		75.54
Vested / Released	(119	)	41.07		(22	)	45.40
Forfeited or expired	(11	)	45.47		—		—
Balance outstanding as of December 31, 2013	508		$	47.92	65		$	48.16

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,
	2013			2012			2013			2012
	(in 000s)
Selling, general and administrative	$	2,586		$	2,048		$	4,975		$	4,027
Research and development costs	1,118			1,148			2,162			2,184
Cost of gaming equipment and systems and product leases and royalties	(43		)	(60		)	(14		)	(54		)
Share-based compensation expense before tax	3,661			3,136			7,123			6,157
Income tax benefit	1,281			1,098			2,493			2,155
Net share-based compensation expense	$	2,380		$	2,038		$	4,630		$	4,002

As of December 31, 2013, there was $2.1 million of total unrecognized compensation expense related to the unvested portion of stock options which will be recognized over the subsequent 1.31 years. In addition, as of December 31, 2013, there was $21.0 million of total unrecognized compensation expense related to the unvested portion of restricted stock and RSUs/PSUs which will be recognized over the subsequent 1.84 years.