Stock Benefit Plans

6 Months Ended

Dec. 31, 2015

Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]

Stock Benefit Plans

10. Stock Benefit Plans

Stock Incentive Plans

The Company may grant incentive stock options (“ISOs”), nonstatutory stock options (“NQSOs”), restricted stock, restricted stock units, stock appreciation rights, performance-based stock awards, and other forms of equity compensation, as well as performance cash awards, under its 2010 Equity Incentive Plan (the “2010 Incentive Plan”). The Company may grant NQSOs and restricted stock units to non-employee directors under the 2010 Non-Employee Directors’ Stock Award Plan (the “Directors’ Plan”). In fiscal year 2016, the Company began granting to employees restricted stock units with a market condition that requires that the Company’s stock price achieve a specified price above the grant date stock price before it can be eligible for service vesting conditions. To date, the Company has issued only ISOs, NQSOs, restricted stock units and performance-based stock awards under its stock incentive plans.

As of December 31, 2015, 13,642,714 shares were reserved and 12,097,530 shares were available for issuance under the 2010 Incentive Plan; 2,789,628 shares were reserved and 1,265,463 shares were available for issuance under the Directors’ Plan.

Stock-Based Compensation

The Company estimates the fair value of stock options at the date of grant using the Black-Scholes option-pricing model. Options are granted with an exercise price equal to the fair value of the common stock at the date of grant. The weighted average Black-Scholes model assumptions for the three and six months ended December 31, 2015 and 2014 were as follows:

	Three Months Ended						Six Months Ended
	December 31,						December 31,
	2015			2014			2015			2014
Expected term (in years)		3.8			4.6			3.9			4.6
Expected volatility		42	%		46	%		43	%		46	%
Expected dividend yield		—			—			—			—
Risk-free interest rate		0.9	%		1.6	%		1.0	%		1.6	%
Grant date fair value	$	1.91		$	1.68		$	1.94		$	1.76

The Company estimates the fair value of restricted stock units with a market condition at the date of the grant using the Monte Carlo simulation model. The weighted average Monte Carlo simulation model assumptions for the three and six months ended December 31, 2015 and 2014 were as follows:

	Three Months Ended					Six Months Ended
	December 31,					December 31,
	2015			2014		2015			2014
Expected term (in years)		4.0			—		4.0			—
Expected volatility		47	%		—		47	%		—
Expected dividend yield		—			—		—			—
Risk-free interest rate		1.4	%		—		1.3	%		—
Grant date fair value	$	5.80			—	$	6.17			—

The fair value of restricted stock units is determined based on the closing price of the Company’s common stock on the grant date. Compensation expense is amortized net of estimated forfeitures on a straight-line basis over the requisite service period of the stock-based compensation awards.