The cost of employee services received in exchange for the award of equity instruments is based on the fair value of the award at the date of grant. Compensation cost is recognized using a straight-line method over the vesting period and is net of estimated forfeitures. Stock option exercises and stock awards are satisfied through the issuance of new shares. 

The Company's Second Amended and Restated Equity Incentive Plan (the Second A&R Plan) provides for the granting of incentive and nonqualified stock options, restricted stock, restricted stock units, performance shares, performance units and stock appreciation rights. There are million shares of common stock authorized for grant under the Second A&R Plan. At there were million shares of common stock available for grant under the Second A&R Plan. The maximum term of incentive options granted under the Second A&R Plan is years. The Second A&R Plan amended and restated the Company's Amended and Restate Equity Incentive Plan (the A&R Plan). The A&R Plan replaced the Company's Nonqualified Stock Option Plan (the Plan). The Second A&R Plan and the Plan (collectively, the Plans) are administered by the Board of Directors and its Executive Compensation Committee, which determine the persons who are to receive awards under the Plans, the number of shares subject to each award and the term and exercise price of each award. The number of shares of common stock subject to outstanding awards as of under the Second A&R Plan and the Plan were million and respectively.  On the Compensation Committee of the Board of Directors approved a modification to the Equity Incentive Plan.   The modification implements a new retirement policy that permits retirees to continue vesting in certain time-based stock options granted during employment, resulting in accelerated stock compensation expense for those employees meeting the definition of retirement eligible.  This modification resulted in an additional million of expense during fiscal year and affected all employees who participate in the plan.

  

The fair values of options granted under the Plans were estimated on the date of grant using the Black-Scholes option-pricing model with the following assumptions used:

 

		Year Ended June 30,
		2018					2017					2016
Dividend yield			1.1%					1.2%					1.2%
Expected volatility		20%	-	21%			21%	-	24%			20%	-	23%
Risk-free interest rates		1.7%	-	2.8%			1.0%	-	1.9%			1.2%	-	1.9%
Expected lives (years)			4.7					4.7					4.8

 

The dividend yield is based on the Company's historical annual cash dividend divided by the market value of the Company's common stock. The expected annualized volatility is based on the Company's historical stock price over a period equivalent to the expected life of the option granted. The risk-free interest rate is based on U.S. Treasury constant maturity interest rates with a term consistent with the expected life of the options granted.

 

Stock option activity under the Plans for the years ended consists of the following (shares in thousands): 

 

		Number of Shares (in thousands)				Weighted Average Exercise Price				Aggregate Intrinsic Value (millions)				Weighted Average Contractual Life (years)
Outstanding at June 30, 2015			1,137			$	81.57
Granted			805				105.16
Forfeited			(54	)			99.68
Exercised			(69	)			69.82
Outstanding at June 30, 2016			1,819			$	91.91
Granted			1,135				107.42
Forfeited			(70	)			99.11
Exercised			(63	)			71.81
Outstanding at June 30, 2017			2,821			$	98.42
Granted			1,087				120.67
Forfeited			(252	)			86.62
Exercised			(204	)			111.51
Outstanding at June 30, 2018			3,452			$	105.17			$	144.7				4.8
Exercisable at June 30, 2016:			596				75.74
Exercisable at June 30, 2017:			843				82.93
Exercisable at June 30, 2018:			1,151				90.75			$	65.8				3.8

  

The weighted average fair value of options granted during fiscal and was and respectively. The total intrinsic value of options exercised during fiscal and were million, million, and million respectively. The total fair value of options vested during fiscal and were million, million, and million respectively.

 

Restricted common stock activity under the Plans for the years ended consists of the following (units in thousands):

 

		Number of Shares (in thousands)				Weighted Average Grant Date Fair Value				Weighted Average R emaining Contractual Term (years)
Unvested at June 30, 2015			19			$	83.94
Granted			20				99.53
Vested			(16	)			83.58
Forfeited			-				-
Unvested at June 30, 2016			23			$	98.03
Granted			24				104.94
Vested			(15	)			92.62
Forfeited			-				-
Unvested at June 30, 2017			32			$	105.80
Granted			20				125.05
Vested			(17	)			104.66
Forfeited			-				-
Unvested at June 30, 2018			35			$	117.39				6.2

 

 

The total fair value of restricted shares that vested was million for fiscal million for fiscal and million for fiscal

 

Restricted stock unit activity under the Plans for the years ended consists of the following (units in thousands):

 

		Number of Units (in thousands)				Weighted Average Grant Date Fair Value				Weighted Average R emaining Contractual Term (years)
Outstanding at June 30, 2015			29			$	93.51
Granted			35				105.01
Vested			(5	)			92.15
Forfeited			-				-
Outstanding at June 30, 2016			59			$	100.40
Granted			65				109.36
Vested			(9	)			92.94
Forfeited			(4	)			98.04
Outstanding at June 30, 2017			111			$	106.39
Granted			71				129.99
Vested			(16	)			95.46
Forfeited			(18	)			115.01
Outstanding at June 30, 2018			148			$	117.95				5.5

 

 

The total fair value of restricted stock units that vested was million for fiscal million for fiscal and million for fiscal The restricted stock units vest over a -year period.

 

Stock-based compensation cost of million, million, and million was included in selling, general and administrative expense in fiscal and respectively. The income tax benefit associated with stock-based compensation costs was million and million in fiscal and respectively. As of there was million of unrecognized compensation cost related to non-vested stock options, non-vested restricted stock units and non-vested restricted stock which will be expensed in fiscal through using a forfeiture rate. The weighted average period over which the compensation cost is expected to be recognized is years.

In fiscal year the Company established the Bio-Techne Corporation Employee Stock Purchase Plan (ESPP), which was approved by the Company's shareholders on and which is designed to comply with IRS provisions governing employee stock purchase plans. shares were allocated to the ESPP. The Company recorded expense of and expense for the ESPP in fiscal and respectively.

 

The Company has profit sharing and savings plans for its U.S. employees, which conform to IRS provisions for (k) plans. The Company makes matching contributions to the Plan. The Company has recorded an expense for contributions to the plans of million, million, and million for the years ended and respectively. The Company operates defined contribution pension plans for its U.K. employees. The Company has recorded an expense for contributions to the plans of million, and million for the years ended and respectively.

In fiscal under certain employment agreements and a Management Incentive Plan available to executive officers and certain management personnel, the Company recorded cash bonuses of million, granted options for  shares of common stock, issued restricted common shares and restricted stock units. In fiscal and fiscal the Company recorded cash bonuses of million and million, granted options for and shares of common stock, and issued and restricted common stock shares and and restricted stock, respectively.