SEC Filings

10-K
ARRAY BIOPHARMA INC filed this Form 10-K on 08/11/2017
Entire Document
 

NOTE 11 – SHARE-BASED COMPENSATION
Total share-based compensation expense recorded for employee equity awards issued pursuant to the Option and Incentive Plan and for shares issued under the ESPP was $10.0 million, $7.3 million and $7.8 million for the fiscal years ended June 30, 2017, 2016 and 2015, respectively. Share-based compensation for the year ended June 30, 2017, 2016 and 2015 consisted of:
 
 
Year Ended June 30,
 
 
2017
 
2016
 
2015
Awards issued to employees
 
$
9,965

 
$
7,283

 
$
7,513

Options issued to transitioned CMC employees, net of other CMC share-based compensation amounts
 

 

 
251

Other non-employee awards
 

 

 
296

Total share-based compensation expense
 
$
9,965

 
$
7,283

 
$
8,060


We use the Black-Scholes option pricing model to estimate the fair value of our share-based awards. In applying this model, we use the following assumptions:
Risk-free interest rate - We determine the risk-free interest rate by using a weighted average assumption equivalent to the expected term based on the U.S. Treasury constant maturity rate.
Expected term - We estimate the expected term of our options based upon historical exercises and post-vesting termination behavior.
Expected volatility - We estimate expected volatility using daily historical trading data of our common stock.
Dividend yield - We have never paid dividends and currently have no plans to do so; therefore, no dividend yield is applied.
Option Awards

The fair values of our employee option awards were estimated using the assumptions below, which yielded the following weighted average grant date fair values for the periods presented:
 
Year Ended June 30,
 
2017
 
2016
 
2015
 
 
 
 
 
 
Risk-free interest rate
1.1% - 2.1%
 
1.3% - 1.8%
 
1.5% - 2.1%
Expected option term in years
4.0 - 5.5
 
5.5 - 6.25
 
6.25
Expected volatility
57.0% - 66.8%
 
55.7% - 60.1%
 
60.8% - 67.1%
Dividend yield
0%
 
0%
 
0%
Weighted average grant date fair value
$4.46
 
$1.95
 
$3.86


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