Presidio, Inc. - 10-K filing on 2017-09-21

Share-based Compensation (Tables)

12 Months Ended

Jun. 30, 2017

Disclosure of Compensation Related Costs, Share-based Payments [Abstract]

Summary of Nonqualified Stock Option Activity

A summary of the nonqualified stock option activity was as follows:



	Service & Rolled options outstanding (Predecessor)
	Total outstanding options						Vested (exercisable) options						Nonvested options
			Weighted-average						Weighted-average						Weighted-average
	Number of options		Exercise price		Fair value		Number of options		Exercise price		Fair value		Number of options		Exercise price		Fair value
Balance, June 30, 2014	41,140,727		$	0.30	$	0.41	24,960,116		$	0.32	$	0.33	16,180,611		$	0.27	$	0.52
Granted	—		—		—		—		—		—		—		—		—
Vested	—		—		—		16,164,611		0.27		0.52		(16,164,611	)	0.27		0.52
Exercised	(101,770	)	0.16		0.49		(101,770	)	0.16		0.49		—		—		—
Forfeited	(20,000	)	0.59		0.48		(4,000	)	0.59		0.48		(16,000	)	0.59		0.48
Expired	—		—		—		—		—		—		—		—		—
Settled⁽¹⁾	(33,085,101	)	0.32		0.37		(33,085,101	)	0.32		0.37		—		—		—
Rolled⁽¹⁾	(7,933,856	)	0.23		0.55		(7,933,856	)	0.23		0.55		—		—		—
Balance, February 1, 2015	—		$	—	$	—	—		$	—	$	—	—		$	—	$	—



	Service & Rolled options outstanding (Successor)
	Total outstanding options						Vested (exercisable) options						Nonvested options
			Weighted-average						Weighted-average						Weighted-average
	Number of options		Exercise price		Fair value		Number of options		Exercise price		Fair value		Number of options		Exercise price		Fair value
Balance, November 20, 2014	—		$	—	$	—	—		$	—	$	—	—		$	—	$	—
Rolled⁽¹⁾	1,770,688		1.30		3.89		1,770,688		1.30		3.89		—		—		—
Granted	3,313,500		5.00		1.62		—		—		—		3,313,500		5.00		1.62
Exercised	—		—		—		—		—		—		—		—		—
Forfeited	(10,000	)	5.00		1.62		—		—		—		(10,000	)	5.00		1.62
Expired	—		—		—		—		—		—		—		—		—
Balance, June 30, 2015	5,074,188		3.71		2.41		1,770,688		1.30		3.89		3,303,500		5.00		1.62
Granted	489,400		8.58		3.03		—		—		—		489,400		8.58		3.03
Vested	—		—		—		658,500		5.00		1.62		(658,500	)	5.00		1.62
Exercised	(23,856	)	1.43		3.74		(23,856	)	1.43		3.74		—		—		—
Forfeited	(238,156	)	5.19		1.87		(14,010	)	1.43		3.74		(224,146	)	5.42		1.75
Expired	—		—		—		—		—		—		—		—		—
Balance, June 30, 2016	5,301,576		4.10		2.49		2,391,322		2.32		3.27		2,910,254		5.57		1.85
Granted	1,953,087		13.85		5.00		—		—		—		1,953,087		13.85		5.00
Vested	—		—		—		658,665		5.50		1.82		(658,665	)	5.50		1.82
Exercised	(280,618	)	3.21		2.84		(280,618	)	3.21		2.84		—		—		—
Forfeited	(172,454	)	6.66		2.26		(12,686	)	5.44		1.78		(159,768	)	6.76		2.30
Expired	—		—		—		—		—		—		—		—		—
Balance, June 30, 2017	6,801,591		$	6.88	$	3.20	2,756,683		$	2.98	$	3.03	4,044,908		$	9.53	$	3.32



	Performance options outstanding (Predecessor)
	Total outstanding options						Vested (exercisable) options						Nonvested options
			Weighted-average						Weighted-average						Weighted-average
	Number of options		Exercise price		Fair value		Number of options		Exercise price		Fair value		Number of options		Exercise price		Fair value
Balance, June 30, 2014	24,395,687		$	0.22	$	0.53	—		$	—	$	—	24,395,687		$	0.22	$	0.53
Granted	—		—		—		—		—		—		—		—		—
Vested	—		—		—		23,671,078		0.22		0.53		(23,671,078	)	0.22		0.53
Exercised	—		—		—		—		—		—		—		—		—
Forfeited	(724,609	)	0.25		0.53		—		—		—		(724,609	)	0.25		0.53
Expired	—		—		—		—		—		—		—		—		—
Settled⁽¹⁾	(22,204,906	)	0.22		0.53		(22,204,906	)	0.22		0.53		—		—		—
Rolled⁽¹⁾	(1,466,172	)	0.33		0.55		(1,466,172	)	0.33		0.55		—		—		—
Balance, February 1, 2015	—		$	—	$	—	—		$	—	$	—	—		$	—	$	—



	Performance and market options outstanding (Successor)
	Total outstanding options						Vested (exercisable) options					Nonvested options
			Weighted-average					Weighted-average						Weighted-average
	Number of options		Exercise price		Fair value		Number of options	Exercise price		Fair value		Number of options		Exercise price		Fair value
Balance, November 20, 2014	—		$	—	$	—	—	$	—	$	—	—		$	—	$	—
Granted	3,298,500		5.00		1.90		—	—		—		3,298,500		5.00		1.90
Exercised	—		—		—		—	—		—		—		—		—
Forfeited	(10,000	)	5.00		1.90		—	—		—		(10,000	)	5.00		1.90
Expired	—		—		—		—	—		—		—		—		—
Balance, June 30, 2015	3,288,500		5.00		1.90		—	—		—		3,288,500		5.00		1.90
Granted	474,352		8.57		3.09		—	—		—		474,352		8.57		3.09
Vested	—		—		—		—	—		—		—		—		—
Exercised	—		—		—		—	—		—		—		—		—
Forfeited	(228,140	)	5.42		2.05		—	—		—		(228,140	)	5.42		2.05
Expired	—		—		—		—	—		—		—		—		—
Balance, June 30, 2016	3,534,712		5.45		2.06		—	—		—		3,534,712		5.45		2.06
Granted	96,736		10.16		3.38		—	—		—		96,736		10.16		3.38
Vested	—		—		—		—	—		—		—		—		—
Exercised	—		—		—		—	—		—		—		—		—
Forfeited	(178,412	)	5.94		2.08		—	—		—		(178,412	)	5.94		2.08
Expired	—		—		—		—	—		—		—		—		—
Balance, June 30, 2017	3,453,036		$	5.56	$	2.09	—	$	—	$	—	3,453,036		$	5.56	$	2.09

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(1)	In conjunction with the Presidio Acquisition, certain employees rolled the value of their vested Predecessor stock options into vested Successor stock options. For those employees that did not roll their stock options, the outstanding stock options were canceled in exchange for a cash payment equal to their intrinsic value at the acquisition price.

Schedule of Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Outstanding

A summary of nonqualified stock options that are vested or expected to vest was as follows:



	Number of options	Weighted-average exercise price		Intrinsic value (in millions)		Weighted-average remaining contract term (in years)
Predecessor
Balance, February 1, 2015	—	$	—	$	—	—


Successor
Balance, June 30, 2015	4,359,066	$	3.50	$	6.5	9.6
Balance, June 30, 2016	4,984,970	4.01		23.6		7.7
Balance, June 30, 2017	8,556,912	6.44		67.3		7.0

Schedule of Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Grant Date Intrinsic Value

A summary of the intrinsic values of nonqualified stock options was as follows (in millions):



			Service & Rolled options outstanding						Performance and market options outstanding
	Exercised during the period end		Total outstanding options		Vested (exercisable) options		Nonvested options		Nonvested options
Predecessor
February 1, 2015	$	0.1	$	—	$	—	$	—	$	—


Successor
June 30, 2015	$	—	$	6.5	$	6.5	$	—	$	—
June 30, 2016	0.2		24.6		15.4		9.2		11.7
June 30, 2017	3.1		50.6		31.2		19.4		30.2

Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions

The weighted-average assumptions used in the Black-Scholes and Monte Carlo valuations to calculate the fair value of the awards granted during the periods were as follows:



	Predecessor	Successor
	July 1, 2014 to February 1, 2015	November 20, 2014 to June 30, 2015		Fiscal Year Ended June 30, 2016		Fiscal Year Ended June 30, 2017
Nonqualified stock options:
Expected life (in years)⁽²⁾	N/A⁽¹⁾	6.5		6.5		6.4
Expected volatility	N/A⁽¹⁾	28.3	%	32.2	%	32.3	%
Average risk-free interest rate	N/A⁽¹⁾	1.9	%	1.8	%	2.2	%
Dividend yield	N/A⁽¹⁾	—	%	—	%	—	%

___________________________________


(1)	There were no grants issued during the period from July 1, 2014 to February 1, 2015.


(2)	The expected life assumption for the Tranche B and Tranche C awards used in the Monte Carlo simulation varied based on the outcomes of each scenario performed.

Schedule of Share-based Compensation Expense and Realized Tax Benefits

The following table summarizes the share-based compensation expense and the related income tax benefit as follows (in millions):



	Predecessor		Successor
	July 1, 2014 to February 1, 2015		November 20, 2014 to June 30, 2015		Fiscal Year Ended June 30, 2016		Fiscal Year Ended June 30, 2017
Nonqualified stock options	$	17.3	$	1.0	$	2.2	$	10.2
Stock appreciation rights	2.8		—		—		—
Total	$	20.1	$	1.0	$	2.2	$	10.2
Reported as:
Selling expenses	$	8.5	$	0.4	$	0.9	$	4.2
General and administrative expenses	11.6		0.6		1.3		6.0
Total	$	20.1	$	1.0	$	2.2	$	10.2
Income tax benefit for share-based compensation	$	7.8	$	0.4	$	0.9	$	4.0