Stock-based Compensation

9 Months Ended

Mar. 31, 2013

Share-based Compensation [Abstract]

STOCK-BASED COMPENSATION

STOCK-BASED COMPENSATION

The Company issues stock-based awards, including stock options and other stock-based awards (restricted stock units and performance-based awards) in accordance with the Company’s various equity compensation plans that have been approved by the Company's Board of Directors.

In June 2011, the Company adopted the 2011 Stock Incentive Plan (the “2011 Plan”), which effectively replaced the 2004 Stock Incentive Plan (the “2004 Plan”), from which stock-based awards were granted prior to the Company's initial public offering. No further equity awards will be made under the 2004 Plan. The 2011 Plan allows for the issuance of 14,000,000 shares of common stock, all of which may be granted as incentive stock awards. As of March 31, 2013, there were 8,257,394 shares of common stock available for grant under the 2011 Plan. As of March 31, 2013, there were 1,610,665 options, 1,233,933 restricted stock units and 983,322 performance-based restricted stock units outstanding under the 2011 Plan. The 2011 Plan also includes 1,530,139 restricted shares that vested during the nine months endedMarch 31, 2013. Stock options issued under the 2011 Plan vest and become exercisable ratably over three years, while the time-based restricted stock units and performance units vest ratably over four years.

The actual number of performance units earned may be increased or decreased based upon the Company's financial performance for the fiscal year during which the awards were granted. The Company recognized estimated expense for the three months and nine months endedMarch 31, 2013 related to the performance-based awards based upon the Company achieving 100% of its targeted financial performance metrics for fiscal year 2013.

During the three months endedMarch 31, 2012 and 2013, under its stock incentive plans, the Company incurred stock-based compensation expense of $1.9 million and $0.6 million, respectively, and incurred $6.5 million and $5.5 million for the nine months endedMarch 31, 2012 and 2013, respectively. Compensation cost related to stock-based awards will be adjusted for future changes in estimated forfeitures and actual results of performance measures.