Share-based Payments

12 Months Ended

Jun. 30, 2020

Disclosure of share-based payment arrangements [Abstract]

The Group maintains three share-based employee compensation plans: the 2015 Share Incentive Plan (“2015 Plan”); the Atlassian Corporation Plc 2013 U.S. Share Option Plan (“2013 U.S. Option Plan”); and the Atlassian UK Employee Share Option Plan (together with the 2013 U.S. Option Plan, the “Option Plans”). In October 2015, the board of directors approved the 2015 Plan, and in November 2015, our shareholders adopted the 2015 Plan, effective on our IPO, and provides for the issuance of incentive and nonstatutory share options, share appreciation rights, restricted share awards, RSUs, unrestricted share awards, performance share awards, performance-based awards to covered employees, and dividend equivalent rights to qualified employees, directors and consultants. Under the 2015 Plan, a total of 20.7 million Class A ordinary shares were initially reserved for the issuance of awards, subject to automatic annual increases.

RSU grants generally vest 25% on the one year anniversary and 1/12th of the remaining RSUs vest over the remaining three years, on a quarterly basis thereafter. Performance-based RSUs have non-market performance vesting conditions. Individuals must continue to provide services to a Group entity in order to vest.

The Option Plans allowed for the issuance of options to purchase restricted shares. Effective upon our IPO, all restricted shares automatically converted to Class A ordinary shares and under the Option Plans, the shares underlying the options converted to Class A ordinary shares. Although no future awards will be granted under the Option Plans, they will continue to govern outstanding awards granted thereunder.

Under the Option Plans, share options have a contractual life of seven to ten years and typically follow a standard vesting schedule over a four year period: 25% vest on the one year anniversary and 1/48th monthly vesting for the 36 months thereafter. Individuals must continue to provide services to a Group entity in order to vest. Upon termination, all unvested options are forfeited and vested options must generally be exercised within three months.

RSU and Class A ordinary share option activity was as follows:


		Share Options
	Shares Available for Grant	Outstanding	Weighted Average Exercise Price		RSUs Outstanding






























Balance as of June 30, 2018	30,600,215	2,723,182	$	2.41	9,602,673
Increase in shares authorized:
2015 Plan	11,807,109	—	—		—
RSUs granted	(5,397,681)	—	—		5,397,681
RSUs canceled	1,113,870	—	—		(1,113,870)
RSUs settled	—	—	—		(4,674,873)
Share options exercised	—	(1,496,875)	2.37		—
Share options canceled	5,481	(5,481)	0.65		—
Balance as of June 30, 2019	38,128,994	1,220,826	2.47		9,211,611
Increase in shares authorized:

RSUs granted	(3,083,015)	—	—		3,083,015

RSUs canceled	874,564	—	—		(874,564)
RSUs settled	—	—	—		(4,048,319)

Share options exercised	—	(761,945)	2.37		—
Share options canceled	707	(707)	1.03		—
Balance as of June 30, 2020	35,921,250	458,174	$	2.65	7,371,743
Share options vested and exercisable as of June 30, 2020		457,663	$	2.65
Share options vested and exercisable as of June 30, 2019		1,027,372	$	2.55

During fiscal year ended 2019, the Company added 11,807,109 Class A ordinary shares to the pool of shares available for issuance, pursuant to an evergreen provision contained in the 2015 Plan.

The weighted-average remaining contractual life for options outstanding as of both fiscal year end, June 30, 2020 and 2019, were 3.6 years. Options exercisable as of June 30, 2020 and 2019, had a weighted-average remaining contractual life of approximately 3.6 years and 3.2 years, respectively.

The following table summarizes information about share options outstanding as of June 30, 2020:


	Options Outstanding				Options Exercisable
Range of Exercise Prices	Number Outstanding	Weighted Average Exercise Price		Number Exercisable	Weighted Average Exercise Price		Weighted Average Remaining Years
$0.59 - 0.66	78,563	$	0.62	78,563	$	0.62	4.86
$1.14	21,024	1.14		20,513	1.14		6.07
$3.18	358,587	3.18		358,587	3.18		3.23
	458,174	$	2.65	457,663	$	2.65	3.64

The following table summarizes information about share options outstanding as of June 30, 2019:


	Options Outstanding				Options Exercisable
Range of Exercise Prices	Number Outstanding	Weighted- Average Exercise Price		Number Exercisable	Weighted Average Exercise Price		Weighted Average Remaining Years
$0.59 - 0.66	196,206	$	0.63	143,346	$	0.62	5.83
$1.14	65,107	1.14		20,868	1.14		7.07
$1.92 - 2.16	17,828	2.09		17,828	2.09		0.45
$2.40 - 2.92	299,613	2.47		299,613	2.47		0.86
$3.18	642,072	3.18		545,717	3.18		3.81
	1,220,826	$	2.47	1,027,372	$	2.55	3.24

All share-based payments are measured based on the grant date fair value of the awards and recognized in the consolidated statements of operations over the period during which the employee is required to perform services in exchange for the award (generally the four-year vesting period of the award).

The weighted-average grant date fair value of the RSUs issued during the fiscal years ended June 30, 2020 and 2019 was $139.2 and $83.90 per share, respectively. There were no share options granted during the fiscal year ended June 30, 2020 and 2019.

As of June 30, 2020, the Group had an aggregate of $328.6 million of future period share-based payment expense related to all equity awards outstanding, net of estimated forfeitures, to be amortized over a weighted-average remaining period of 1.4 years.

Restricted stock

During the fiscal year 2020 and 2019, the Company granted 245,221 and 593,567 shares of restricted stock that were subject to forfeiture, respectively. The weighted average grant fair value date of these restricted shares was $135.64 and $98.72, respectively. As of June 30, 2020 and 2019, there were 515,697 and 911,367 shares of restricted stock outstanding, respectively. These outstanding shares of restricted stock are subject to forfeiture or repurchase at the original exercise price during the repurchase period following employee termination, as applicable.