Share-Based Compensation (Tables)

12 Months Ended

Jun. 30, 2014

Total share-based compensation included as a component of selling, general, and administrative expenses in our Consolidated Income Statements was as follows:



	Fiscal Year Ended June 30,
	2014		2013		2012
	(in thousands)
Share-based compensation related to:
Equity classified stock options	$	1,577	$	2,125	$	2,875
Equity classified restricted stock	3,671		3,493		3,965
Total share-based compensation	$	5,248	$	5,618	$	6,840

Weighted Average Assumptions for the Options Granted During the Following Fiscal Years

The Company used the following weighted average assumptions for the options granted during the following fiscal years:



	Fiscal Year Ended June 30,
	2014			2013			2012
Expected term	4.00 years			4.64 years			6.77 years
Expected volatility	33.70		%	42.90		%	41.33		%
Risk-free interest rate	1.07		%	0.64		%	1.42		%
Dividend yield	0.00		%	0.00		%	0.00		%
Weighted average fair value per option	$	11.91		$	10.48		$	14.94

Stock Option Plans

A summary of our stock option plans is presented below:



	Fiscal Year Ended June 30, 2014
	Options		Weighted- Average Exercise Price		Weighted- Average Remaining Contractual Life	Aggregate Intrinsic Value
Outstanding, beginning of year	1,478,283		$	31.18
Granted during the period	122,856		42.57
Exercised during the period	(498,971	)	27.96
Canceled, forfeited, or expired during the period	(31,071	)	34.06
Outstanding, end of year	1,071,097		33.91		5.51	$	5,025,390
Vested and expected to vest at June 30, 2014	1,070,718		33.91		5.51	$	5,024,582
Exercisable, end of year	820,165		$	32.98	4.51	$	4,181,791

Unvested Shares

A summary of the status of the Company’s shares subject to unvested options is presented below:



	Fiscal Year Ended June 30, 2014
	Options		Weighted Average Exercise Price		Weighted Average Grant Date Fair- Value
Unvested, beginning of year	261,280		$	32.28	$	12.40
Granted	122,856		42.57		11.91
Vested	(122,350	)	33.29		13.39
Canceled or forfeited	(10,854	)	29.80		11.52
Unvested, end of year	250,932		$	36.93	$	11.72

Stock Options Outstanding

The following table summarizes information about stock options outstanding and exercisable as of June 30, 2014:



	Options Outstanding				Options Exercisable
Range of Exercise Prices	Shares Outstanding	Weighted Average Remaining Contractual Life	Weighted Average Exercise Price		Number Exercisable	Weighted Average Exercise Price
$18.13 - $22.27	15,758	4.43	$	18.14	15,758	$	18.14
$22.27 - $26.38	30,000	5.43	24.57		30,000	24.57
$26.38 - $30.49	230,739	4.99	28.95		152,936	28.55
$30.49 - $34.60	338,644	4.93	33.21		288,371	33.02
$34.60 - $38.71	335,600	5.11	36.44		333,100	36.44
$38.71 - $42.82	120,356	9.43	42.69		—	—
	1,071,097	5.51	$	33.91	820,165	$	32.98

Restricted Stock Outstanding

During the fiscal year ended June 30, 2014, the Company elected to grant 131,038 shares of restricted stock to employees and non-employee directors, all of which were issued in the form of RSUs:



	Fiscal Year Ended June 30, 2014
	Shares granted	Date granted	Grant date fair value		Vesting period
Employees
Certain employees based on promotions	3,172	August 27, 2013	$	31.54	Annually over 3 years
Certain employees	115,766	December 6, 2013	42.82		Annually over 3 years
Non-Employee Directors⁽¹⁾
Certain Directors	10,800	December 6, 2013	$	42.82	6 months
Newly appointed Director	1,300	June 1, 2014	$	37.10	6 months

(1)

Per the 2013 Long-Term Incentive Plan, non-employee directors will receive annual awards of restricted stock, as opposed to stock options. The number of shares of restricted stock to be granted will be established from time to time by the Board of Directors. Currently, the number of shares of restricted stock awarded annually to each non-employee director generally will be determined by dividing $100,000 by the equity award value of the common stock on the date of grant, as defined in the 2013 Long-Term Incentive Plan. These awards will generally vest in full on the day that is six months after the date of grant or upon the earlier occurrence of (i) the director’s termination of service as a director by reason of death, disability or retirement, or (ii) a change in control by the Company. The compensation expense associated with these awards will be recognized on a pro-rata basis over this period.

A summary of the status of the Company’s outstanding restricted stock is presented below:



	Fiscal Year Ended June 30, 2014
	Shares		Weighted Average Grant Date Fair Value
Outstanding, beginning of year	212,421		$	31.82
Granted during the period	131,038		42.49
Vested during the period	(101,452	)	33.23
Cancelled, forfeited, or expired during the period	(21,899	)	33.54
Outstanding, end of year	220,108		$	37.36