Share-Based Compensation (Tables)

12 Months Ended

Jun. 30, 2016

Disclosure of Share-based Compensation Arrangements by Share-based Payment Award

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,
	2016		2015		2014
	(in thousands)
Share-based compensation related to:
Equity classified stock options	$	1,479	$	1,480	$	1,577
Equity classified restricted stock	5,614		5,042		3,671
Total share-based compensation	$	7,093	$	6,522	$	5,248

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,
	2016			2015			2014
Expected term	4.02 years			4.02 years			4.00 years
Expected volatility	28.70		%	30.06		%	33.70		%
Risk-free interest rate	1.47		%	1.22		%	1.07		%
Dividend yield	0.00		%	0.00		%	0.00		%
Weighted-average fair value per option	$	9.53		$	10.51		$	11.91

Stock Option Plans

A summary of our stock option plans is presented below:



	Fiscal Year Ended June 30, 2016
	Options		Weighted- Average Exercise Price		Weighted- Average Remaining Contractual Life	Aggregate Intrinsic Value
Outstanding, beginning of year	1,166,031		$	35.09
Granted during the period	128,000		38.15
Exercised during the period	(194,041	)	29.04
Canceled, forfeited, or expired during the period	(1,825	)	32.03
Outstanding, end of year	1,098,165		36.52		5.35	$	2,123,342
Vested and expected to vest at June 30, 2016	1,096,239		36.51		5.34	$	2,123,244
Exercisable, end of year	819,670		$	35.35	4.19	$	2,120,598

Unvested Shares

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



	Fiscal Year Ended June 30, 2016
	Options		Weighted Average Exercise Price		Weighted Average Grant Date Fair- Value
Unvested, beginning of year	286,580		$	39.98	$	10.91
Granted	128,000		38.15		9.53
Vested	(136,085	)	38.29		10.93
Canceled or forfeited	—		—		—
Unvested, end of year	278,495		$	39.96	$	10.27

Stock Options Outstanding

The following table summarizes information about stock options outstanding and exercisable as of June 30, 2016:



	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	5,600	2.43	$	18.14	5,600	$	18.14
$22.27 - $26.38	30,000	3.43	24.57		30,000	24.57
$26.38 - $30.49	35,922	6.48	29.59		35,922	29.59
$30.49 - $34.60	296,929	3.38	33.23		296,929	33.23
$34.60 - $38.71	442,765	5.02	36.92		313,940	36.43
$38.71 - $42.82	286,949	8.02	41.77		137,279	42.04
	1,098,165	5.35	$	36.52	819,670	$	35.35

Restricted Stock Outstanding

During the fiscal year ended June 30, 2016, the Company granted 138,634 shares of restricted stock to employees and non-employee directors, all of which were issued in the form of RSUs or PUs:



	Fiscal Year Ended June 30, 2016
	Shares granted	Date granted	Grant date fair value		Vesting period
Employees
Certain employees	124,572	December 4, 2015	38.19		Annually over 3 years
Certain employees	476	February 12, 2016	36.30		Annually over 3 years
Non-Employee Directors⁽¹⁾
Certain Directors	13,500	December 4, 2015	$	38.19	6 months

(1) Under 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. The equity award value means the value per share based on a 45-day averaging of the fair market value of the common stock over a specified period of time, or the fair market value of the common stock on a specified date. 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, 2016
	Shares		Weighted-Average Grant Date Fair Value
Outstanding, beginning of year	279,196		$	38.87
Granted during the period	138,634		38.18
Target shares adjustment during the period ⁽¹⁾	366		39.01
Vested during the period	(133,068	)	38.83
Cancelled, forfeited, or expired during the period	(10,324	)	40.65
Outstanding, end of year	274,804		$	39.06

(1) These target shares granted as RSUs during fiscal year 2015 have service based and performance based vesting conditions. The actual number of shares granted for each of the three tranches, for the period June 1, 2014 through June 30, 2017, is determined after the date of the Company's financial statements. Therefore, the adjustment recognized during fiscal year 2016 represents the variance between the shares assumed to be granted versus at June 30, 2015 the actual shares granted for the first tranche.