For the months ended and share-based compensation expense totaled million, million, and million respectively. These amounts have been included in the Consolidated Statements of Comprehensive Income within selling, general and administrative expenses. During the months ended and we recognized related tax benefits associated with our share-based compensation arrangements totaling million, million and million, respectively (before valuation allowances). Such amounts have been included in the Consolidated Statements of Comprehensive Income within income tax expense.

 

At we had shares of common stock available for future issuance pursuant to the Stock Option Plan (the “Plan”). The maximum number of shares of common stock reserved for issuance under the Plan is shares. The Plan provides for the grant of non-compensatory stock options to eligible employees and non-employee directors. Stock options under the Plan are non-qualified under section of the Internal Revenue Code and allow for the purchase of shares of our common stock. The Plan also provides for the issuance of stock appreciation rights ("SARs") on issued options, however SARs have been issued to date. The awarding of such options is determined by the Compensation Committee of the Board of Directors after consideration of recommendations proposed by the Chief Executive Officer. Options are generally granted with an exercise price equal to the market price of our common stock at the date of grant, vest ratably over a specified service period, and have a contractual term of years. Equity awards can also include performance vesting conditions. Company policy further requires an additional year holding period beyond the service vest date for certain executives. Beginning grants to employees include both company performance and service vesting conditions (as further described below). Grants to independent directors have a -year service vesting condition. Following is a description of grants made under the Plan.

 

 

We estimate, as of the date of grant, the fair value of stock options awarded using the Black-Scholes option pricing model. Use of a valuation model requires management to make certain assumptions with respect to selected model inputs, including anticipated changes in the underlying stock price (i.e. expected volatility) and option exercise activity (i.e. expected life). Expected volatility is based on the historical volatility of our stock. The risk-free rate of return is based on the U.S. Treasury bill rate extrapolated to the term matching the expected life of the grant. The dividend yield is based on the annualized dividend rate at the grant date relative to the grant date stock price. The expected life of options granted, which represents the period of time that the options are expected to be outstanding, is based, primarily, on historical data. The weighted average assumptions used for fiscal years ended are noted in the following table:

 

		2018				2017				2016
Volatility			31.5	%			36.8	%			48.1	%
Risk-free rate of return			1.76	%			1.03	%			1.93	%
Dividend yield			2.47	%			1.96	%			1.95	%
Expected average life (years)			4.6				5.0				6.3

 

Options granted to employees beginning vest provided certain performance and service conditions are met (“Performance Options”). The performance conditions allow the potential vesting in equal tranches, provided attainment of a minimum annual growth in operating income (as defined in the agreement) for each of the ensuing fiscal years. If the minimum annual growth is achieved in any fiscal year, that tranche is forfeited, except that if a cumulative compound growth rate of is achieved at the end of the fiscal years, performance conditions for all tranches will have been met. Service conditions require an additional period after performance conditions are met. Consequently, assuming both performance and service conditions are met, shares become exercisable between and years from grant date. At Performance Options achieved the performance conditions, and consequently will vest ratably in equal tranches on the grant date anniversary in years three, and provided service conditions are also met. The remaining Performance Options did achieve the respective performance conditions so the amortization to date was reversed at and the options were cancelled during fiscal The Performance Options are reflected in the options tables presented below. All options were issued at the closing stock price on each grant date, and have a contractual term of years. A summary of stock option activity occurring during the fiscal year ended is presented below.

 

										Weighted
						Weighted				Average
						Average				Remaining
						Exercise				Contractual				Aggregate
Options		Shares				Price				Term (yrs)				Intrinsic Value
Outstanding - June 30, 2017			836,020			$	24.41
Granted			19,482				30.80
Exercised			(9,066	)			21.37
Canceled (forfeited/expired)			(284,841	)			30.28
Outstanding - June 30, 2018			561,595				21.70				3.7			$	2,205,554
Exercisable - June 30, 2018			453,423			$	20.25				2.9			$	2,205,554

 

The weighted average grant-date fair value of options granted during fiscal and was and respectively. The total intrinsic value of options exercised during fiscal and was million, million, and million, respectively. As of there was million of total unrecognized compensation cost related to nonvested options granted under the Plan. That cost is expected to be recognized over a weighted average period of years. A summary of the nonvested shares as of and changes during the year then ended is presented below.

 

						Weighted Average
Options		Shares				Grant Date Fair Value
Nonvested June 30, 2017			285,284			$	11.18
Granted			19,482				6.93
Vested			(69,219	)			10.99
Canceled (forfeited/expired)			(127,375	)			11.40
Nonvested at June 30, 2018			108,172			$	10.27

 

 

We account for stock unit awards as equity-based awards because upon vesting, they will be settled in common shares. These awards, which contain time and other vesting conditions, also contain performance conditions providing recipients a contingent right to receive shares of the Company's common stock ("Performance Units"), conditioned upon the Company's achievement of certain performance targets and goals, and subject to the terms of the agreements. For Performance Units, we expense as compensation cost the fair value of the shares as of the grant date, and amortize expense ratably over the total performance and time vest period, taking into account the probability that we will satisfy the performance goals. We estimate, as of the date of grant, the fair value of Performance Units with a discounted cash flow model, using as model inputs the risk-free rate of return as the discount rate, dividend yield for dividends paid during the restriction period, and a discount for lack of marketability for a -year post-vest holding period. The lack of marketability discount used is the present value of a future put option using Monte-Carlo and Black-Scholes pricing models. The weighted average assumptions used for the fiscal years ended are noted in the table following. Performance based restricted stock unit awards were granted under the Plan prior to

 

		2018				2017
Volatility			32.9	%			30.8	%
Risk-free rate of return			1.41	%			0.92	%
Dividend yield			2.47	%			1.97	%
Expected average life (years)			1.91				2.04

 

For each grant of Performance Units, the amount of the grant that will be earned and paid will be determined by reference to the achievement of certain performance goals applicable to such grant. Equity-based compensation expenses related to performance-based shares recognized in our consolidated statements of comprehensive income are presented in the following table for the fiscal years ended in thousands).

 

Granted within fiscal years ending June 30,			2018				2017
2016			$	92			$	794
2017				(12	)			12
2018				457				-
Total expense			$	537			$	806

 

A summary of stock unit activity occurring during the fiscal year ended is presented below.

 

						Weighted
						Average
						Grant Date
		Units				Fair Value
Nonvested June 30, 2017			308,330			$	25.92
Granted			162,500				25.18
Vested			(59,211	)			23.96
Canceled (forfeited/expired)			(81,250	)			24.94
Nonvested at June 30, 2018			330,369			$	26.15

 

As of there was million of total unrecognized compensation cost related to nonvested units granted under the Plan based on our probability estimates. That cost is expected to be recognized over a weighted average period of year.

 

 

A summary of stock unit activity occurring during the fiscal year ended is presented below.

 

						Weighted
						Average
						Grant Date
		Units				Fair Value
Nonvested June 30, 2017			-			$	-
Granted			16,234				25.62
Vested			-				-
Canceled (forfeited/expired)			(16,234	)			(25.62	)
Nonvested at June 30, 2018			-			$	-

 

During fiscal restricted stock awards were granted and then subsequently voided. There was unrecognized compensation cost related to restricted shares granted under the Plan for fiscal