Stock-Based Compensation

The weighted average estimated fair value of option awards granted was $16.65 and $16.86 during the three and six months ended December 31, 2017, respectively, and $12.45 and $12.96 during the three and six months ended December 31, 2016, respectively.

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



	Six Months Ended December 31,
	2017		2016
Risk-free interest rate	1.7	%	1.1	%
Expected dividend yield	0.0	%	0.0	%
Expected life (in years)	4.6		4.6
Expected volatility factor	28.1	%	31.4	%

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



	Three Months Ended December 31,				Six Months Ended December 31,
	2017		2016		2017		2016
	(Dollars in Thousands)
Recorded as expenses:
Cost of services and other	$	324	$	374	$	774	$	743
Selling and marketing	1,006		1,010		1,891		1,965
Research and development	1,891		1,495		3,788		2,558
General and administrative	2,234		1,792		5,416		4,364
Total stock-based compensation	$	5,455	$	4,671	$	11,869	$	9,630

A summary of stock option and RSU activity under all equity plans for the six months ended December 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, 2017	1,353,558		$	37.98	7.30	$	23,535	615,998		$	45.62
Granted	386,556		63.24					319,741		63.24
Settled (RSUs)	—							(158,814	)	49.79
Exercised	(103,334	)	34.29					—
Cancelled / Forfeited	(33,563	)	50.54					(27,152	)	54.83
Outstanding at December 31, 2017	1,603,217		$	44.05	7.54	$	35,522	749,773		$	51.92
Vested and exercisable at December 31, 2017	878,023		$	36.56	6.42	$	26,023	—
Vested and expected to vest as of December 31, 2017	1,527,998		$	43.58	7.47	$	34,563	670,628		$	51.94

The weighted average grant-date fair value of RSUs granted was $66.52 and $63.24 during the three and six months ended December 31, 2017, respectively, and $47.73 and $45.93 during the three and six months ended December 31, 2016, respectively. The total fair value of shares vested from RSU grants was $4.9 million and $10.2 million during the three and six months ended December 31, 2017, respectively, and $4.2 million and $8.3 million during the three and six months ended December 31, 2016, respectively.

At December 31, 2017, the total future unrecognized compensation cost related to stock options was $9.4 million and is expected to be recorded over a weighted average period of 2.8 years. At December 31, 2017, the total future unrecognized compensation cost related to RSUs was $32.5 million and is expected to be recorded over a weighted average period of 2.8 years.

The total intrinsic value of options exercised was $1.3 million and $2.9 million during the three and six months ended December 31, 2017, respectively, and $1.4 million and $4.1 million during the three and six months ended December 31, 2016, respectively. We received cash proceeds from option exercises of $1.1 million and $3.5 million during the three and six months ended December 31, 2017, respectively, and $1.8 million and $4.8 million during the three and six months ended December 31, 2016, respectively. We withheld withholding taxes on vested RSUs of $1.8 million and $3.4 million during the three and six months ended December 31, 2017, respectively, and $1.5 million and $2.8 million during the three and six months ended December 31, 2016, respectively.

At December 31, 2017, common stock reserved for future issuance or settlement under equity compensation plans was 10.5 million shares.