Stock-Based Compensation

The weighted average estimated fair value of option awards granted was $16.91 and $12.96 during the three months ended September 30, 2017 and 2016, respectively.

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



	Three Months Ended September 30,
	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	%	31.5	%

The stock-based compensation expense under all equity plans and its classification in the unaudited consolidated statements of operations for the three months ended September 30, 2017 and 2016 are as follows:



	Three Months Ended September 30,
	2017		2016
	(Dollars in Thousands)
Recorded as expenses:
Cost of services and other	$	450	$	369
Selling and marketing	885		955
Research and development	1,896		1,062
General and administrative	3,183		2,572
Total stock-based compensation	$	6,414	$	4,958

A summary of stock option and RSU activity under all equity plans for the three months ended September 30, 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	375,330		63.14					310,303		63.14
Settled (RSUs)	—							(84,927	)	50.43
Exercised	(66,567	)	36.21					—
Cancelled / Forfeited	(26,747	)	50.72					(21,478	)	56.10
Outstanding at September 30, 2017	1,635,574		$	43.62	7.73	$	31,553	819,896		$	51.48
Vested and exercisable at September 30, 2017	836,448		$	35.08	6.45	$	23,214	—
Vested and expected to vest as of September 30, 2017	1,556,485		$	43.16	7.66	$	30,741	736,841		$	51.50

The weighted average grant-date fair value of RSUs granted was $63.14 and $45.44 during the three months ended September 30, 2017 and 2016, respectively. The total fair value of shares vested from RSU grants was $5.3 million and $4.0 million during the three months ended September 30, 2017 and 2016, respectively.

At September 30, 2017, the total future unrecognized compensation cost related to stock options was $10.6 million and is expected to be recorded over a weighted average period of 3.0 years. At September 30, 2017, the total future unrecognized compensation cost related to RSUs was $36.7 million and is expected to be recorded over a weighted average period of 3.0 years.

The total intrinsic value of options exercised was $1.7 million and $2.7 million during the three months ended September 30, 2017 and 2016, respectively. We received cash proceeds from option exercises of $2.4 million and $3.1 million during the three months ended September 30, 2017 and 2016, respectively. We withheld withholding taxes on vested RSUs of $1.7 million and $1.3 million during the three months ended September 30, 2017 and 2016, respectively.

At September 30, 2017, common stock reserved for future issuance or settlement under equity compensation plans was 10.6 million shares.