Stock Repurchases

6 Months Ended

Dec. 31, 2021

Equity [Abstract]

Stockholders' Deficit

Stock Repurchases

On July 22, 2020, our Board of Directors approved a share repurchase program (the “FY 2021 Program”) for up to $200.0 million of our common stock. The FY 2021 Program expired on June 30, 2021. On June 4, 2021, our Board of Directors approved a new share repurchase program (the “FY 2022 Program”) for up to $300.0 million of our common stock in our fiscal year ending June 30, 2022. The timing and amount of any shares repurchased under the FY 2022 Program are based on market conditions and other factors. All shares of our common stock repurchased have been recorded as treasury stock under the cost method.

On June 14, 2021, as part of our FY 2022 Program, we entered into an accelerated share repurchase program (the “ASR Program”) with a third-party financial institution to repurchase an aggregate of $150.0 million of our common stock. Pursuant to the terms of the ASR Program, we made an upfront payment of $150.0 million on July 1, 2021 in exchange for the delivery of 872,473 initial shares of our common stock. The actual number of shares repurchased is determined at the maturity of the ASR Program based on the volume-weighted average price per share of our common stock over the term of the ASR Program, less an agreed-upon discount.

The ASR Program was completed on August 20, 2021. We repurchased in total 1,066,194 shares of our common stock for $150.0 million as part of the ASR Program. These shares were recorded as an increase to treasury stock.

On November 12, 2021, as part of our FY 2022 Program, we entered into another accelerated share repurchase program (the “Second ASR Program”) with a third-party financial institution to repurchase an aggregate of $75.0 million of our common stock. Pursuant to the terms of the Second ASR Program, we made an upfront payment of $75.0 million on November 16, 2021 in exchange for the delivery of 402,874 initial shares of our common stock. The actual number of shares repurchased is determined at the maturity of the program based on volume-weighted average price per share of our common stock over the term of the program, less an agreed-upon discount. The Second ASR Program has a maturity date of March 15, 2022. We recorded the $75.0 million payment to the third-party financial institution as a reduction to stockholders’ equity, consisting of a $60.0 million increase in treasury stock, which reflects the value of the initial 402,874 shares received upon initial settlement, and a $15.0 million decrease in additional paid-in capital, which reflects the value of the stock held back by the third-party financial institution pending final settlement of the program. The $15.0 million recorded in additional paid-in capital will be reclassified to treasury stock upon settlement of the Second ASR Program.

Additionally, we repurchased 36,359 shares of our common stock for $4.7 million during the second quarter of fiscal 2022. As of December 31, 2021, the total remaining value under the FY 2022 Program was $85.3 million.