Stock-Based Compensation

6 Months Ended

Dec. 31, 2016

Disclosure of Compensation Related Costs, Share-based Payments [Abstract]

Stock-Based Compensation

Stock-Based Compensation

The weighted average estimated fair value of option awards granted was $12.45 and $12.96 during the three and six months ended December 31, 2016 and $12.39 and $13.52 during the three and six months ended December 31, 2015, respectively.

We utilized the Black-Scholes option valuation model with the following weighted average assumptions:

	Six Months Ended December 31,
	2016		2015
Risk-free interest rate	1.1	%	1.4	%
Expected dividend yield	0.0	%	0.0	%
Expected life (in years)	4.6		4.6
Expected volatility factor	31.4	%	34.1	%

The stock-based compensation expense and its classification in the unaudited consolidated statements of operations for the three and six months ended December 31, 2016 and 2015 are as follows:

	Three Months Ended December 31,				Six Months Ended December 31,
	2016		2015		2016		2015
	(Dollars in Thousands)
Recorded as expenses:
Cost of services and other	$	374	$	350	$	743	$	707
Selling and marketing	1,010		837		1,965		1,750
Research and development	1,495		848		2,558		1,672
General and administrative	1,792		1,477		4,364		3,806
Total stock-based compensation	$	4,671	$	3,512	$	9,630	$	7,935

A summary of stock option and RSU activity under all equity plans for the three and six months ended December 31, 2016 is as follows:

	Stock Options							Restricted Stock Units
	Shares		Weighted Average Exercise Price		Weighted Average Remaining Contractual Term	Aggregate Intrinsic Value (in 000’s)		Shares		Weighted Average Grant Date Fair Value
Outstanding at June 30, 2016	1,314,142		$	32.47	7.23	$	12,340	493,332		$	41.06
Granted	456,872		45.48					509,156		45.93
Settled (RSUs)	—							(163,970	)	41.72
Exercised	(191,085	)	25.84					—
Cancelled / Forfeited	(42,702	)	39.25					(35,987	)	42.28
Outstanding at December 31, 2016	1,537,227		$	36.97	7.72	$	27,219	802,531		$	43.96
Vested and exercisable at December 31, 2016	806,266		$	30.97	6.54	$	19,113	—
Vested and expected to vest as of December 31, 2016	1,460,949		$	36.60	7.65	$	26,416	719,043		$	43.87

The weighted average grant-date fair value of RSUs granted was $47.73 and $45.93 during the three and six months ended December 31, 2016 and $38.04 and $43.94 during the three and six months ended December 31, 2015, respectively.  The total fair value of shares vested from RSU grants was $4.2 million and $8.3 million during the three and six months ended December 31, 2016 and $2.9 million and $6.3 million during the three and six months ended December 31, 2015, respectively.

At December 31, 2016, the total future unrecognized compensation cost related to stock options was $8.3 million and is expected to be recorded over a weighted average period of 2.9 years.  At December 31, 2016, the total future unrecognized compensation cost related to RSUs was $31.4 million and is expected to be recorded over a weighted average period of 2.9 years.

The total intrinsic value of options exercised was $1.4 million and $4.1 million during the three and six months ended December 31, 2016 and $1.4 million and $2.3 million during the three and six months ended December 31, 2015, respectively. We received cash proceeds from option exercises of $4.8 million and $2.4 million during the six months ended December 31, 2016 and 2015, respectively. We withheld withholding taxes on vested RSUs of $2.8 million and $2.2 million during the six months ended December 31, 2016 and 2015, respectively.

At December 31, 2016, common stock reserved for future issuance or settlement under equity compensation plans was 5.0 million shares.