Stock-Based Compensation

9 Months Ended

Mar. 31, 2017

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 $13.70 and $12.96 during the three and nine months ended March 31, 2017 and $10.47 and $13.19 during the three and nine months ended March 31, 2016, respectively.

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

	Nine Months Ended March 31,
	2017		2016
Risk-free interest rate	1.1	%	1.4	%
Expected dividend yield	0.0	%	0.0	%
Expected life (in years)	4.6		4.7
Expected volatility factor	31.4	%	34.1	%

The stock-based compensation expense under all equity plans and its classification in the unaudited consolidated statements of operations for the three and nine months ended March 31, 2017 and 2016 are as follows:

	Three Months Ended March 31,				Nine Months Ended March 31,
	2017		2016		2017		2016
	(Dollars in Thousands)
Recorded as expenses:
Cost of services and other	$	363	$	343	$	1,106	$	1,049
Selling and marketing	972		1,797		2,937		3,547
Research and development	1,618		871		4,177		2,543
General and administrative	1,724		1,367		6,087		5,174
Total stock-based compensation	$	4,677	$	4,378	$	14,307	$	12,313

A summary of stock option and RSU activity under all equity plans for the three and nine months ended March 31, 2017 is as follows:

	Stock Options							Restricted Stock Units
	Shares		Weighted Average Exercise Price		Weighted Average Remaining Contractual Term (Years)	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	459,785		45.54					511,777		45.98
Settled (RSUs)	—							(239,909	)	41.67
Exercised	(295,059	)	26.99					—
Cancelled / Forfeited	(46,024	)	39.58					(39,191	)	42.40
Outstanding at March 31, 2017	1,432,844		$	37.57	7.59	$	30,597	726,009		$	44.25
Vested and exercisable at March 31, 2017	777,059		$	32.29	6.53	$	20,695	—
Vested and expected to vest as of March 31, 2017	1,369,672		$	37.25	7.53	$	29,686	655,472		$	44.16

The weighted average grant-date fair value of RSUs granted was $54.95 and $45.98 during the three and nine months ended March 31, 2017 and $31.97 and $41.91 during the three and nine months ended March 31, 2016, respectively.  The total fair value of shares vested from RSU grants was $4.5 million and $12.8 million during the three and nine months ended March 31, 2017 and $3.6 million and $9.8 million during the three and nine months ended March 31, 2016, respectively.

At March 31, 2017, the total future unrecognized compensation cost related to stock options was $7.5 million and is expected to be recorded over a weighted average period of 2.7 years.  At March 31, 2017, the total future unrecognized compensation cost related to RSUs was $28.2 million and is expected to be recorded over a weighted average period of 2.7 years.

The total intrinsic value of options exercised was $2.9 million and $6.9 million during the three and nine months ended March 31, 2017 and $0.3 million and $2.6 million during the three and nine months ended March 31, 2016, respectively. We received cash proceeds from option exercises of $7.9 million and $2.9 million during the nine months ended March 31, 2017 and 2016, respectively. We withheld withholding taxes on vested RSUs of $4.4 million and $3.4 million during the nine months ended March 31, 2017 and 2016, respectively.

At March 31, 2017, common stock reserved for future issuance or settlement under equity compensation plans was 10.8 million shares.