Executive Stock Plans And Stock-Based Compensation

12 Months Ended

Mar. 31, 2019

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

Executive Stock Plans And Stock-Based Compensation

EXECUTIVE STOCK PLANS AND STOCK-BASED COMPENSATION

Executive Stock Plans

The Company’s shareholders have approved executive stock plans under which officers, directors, and employees of the Company may receive grants and awards of common stock, restricted stock, restricted stock units (“RSUs”), performance share awards (“PSAs”), stock appreciation rights (“SARs”), incentive stock options, and non-qualified stock options. Currently, grants are outstanding under the 1997 Executive Stock Plan, the 2002 Executive Stock Plan, the 2007 Stock Incentive Plan, and the 2017 Stock Incentive Plan. Together, these plans are referred to in this disclosure as the “Plans.” Up to 1,000,000 shares may be issued under the 2017 Stock Incentive Plan, with no specific share limit for any of the award types. New awards may no longer be issued under the 1997, 2002, and 2007 Plans.

The Company’s practice is to award grants of stock-based compensation to officers at the first regularly-scheduled meeting of the Compensation Committee of the Board of Directors (the “Compensation Committee”) in the fiscal year following the public release of the Company’s financial results for the prior year. In recent years, the Compensation Committee has awarded only grants of RSUs and PSAs. All stock options and SARs granted in previous years were either exercised or had expired by the end of fiscal year 2017. Outside directors automatically receive restricted stock units following each annual meeting of shareholders.

Non-qualified stock options and SARs previously granted under the Plans had an exercise price equal to the market price of a share of common stock on the date of grant. SARs granted under the Plans vested in equal one-third tranches one, two, and three years after the grant date and expired 10 years after the grant date, except that SARs granted after fiscal year 2007 expired on the earlier of 3 years after the grantee’s retirement date or 10 years after the grant date. RSUs awarded under the Plans vest 5 years from the grant date and are then paid out in shares of common stock. Under the terms of the RSU awards, grantees receive dividend equivalents in the form of additional RSUs that vest and are paid out on the same date as the original RSU grant. The PSAs vest 3 years from the grant date, are paid out in shares of common stock at the vesting date, and do not carry rights to dividends or dividend equivalents prior to vesting. Shares ultimately paid out under PSA grants are dependent on the achievement of predetermined performance measures established by the Compensation Committee and can range from zero to 150% of the stated award. RSUs awarded to outside directors vest 3 years after the grant date, and restricted stock vests upon the individual’s retirement from service as a director.

SARs

The following table summarizes the Company’s SAR activity for fiscal year 2017, the last year SARs were outstanding under the plans:

	Shares		Weighted-Average Exercise Price
Fiscal Year Ended March 31, 2017:
Outstanding at beginning of year	152,201		$	59.96
Exercised	(135,334	)	61.72
Cancelled/expired	(16,867	)	45.82
Outstanding at end of year	—		$	—

The intrinsic value of the awards exercised in 2017 was approximately $0.6 million. That value is based on the difference between the market price of the underlying shares at the exercise date and the exercise price of the SARs.

RSUs, Restricted Stock, and PSAs

The following table summarizes the Company’s RSU, restricted stock, and PSA activity for fiscal years 2017 through 2019:

	RSUs				Restricted Stock				PSAs
	Shares		Weighted-Average Grant Date Fair Value		Shares		Weighted-Average Grant Date Fair Value		Shares		Weighted-Average Grant Date Fair Value
Fiscal Year Ended March 31, 2017:
Unvested at beginning of year	302,945		$	49.95	48,100		$	42.33	154,300		$	48.13
Granted	74,776		55.27		—		—		58,805		49.17
Vested	(51,544	)	44.57		(17,900	)	42.26		(52,230	)	53.56
Forfeited	(539	)	55.63		—		—		(525	)	49.17
Unvested at end of year	325,638		52.01		30,200		42.37		160,350		46.86
Fiscal Year Ended March 31, 2018:
Granted	72,032		64.13		—		—		39,100		60.37
Vested	(60,751	)	45.51		—		—		(41,667	)	46.41
Forfeited	—		—		—		—		(6,783	)	46.41
Unvested at end of year	336,919		55.77		30,200		42.37		151,000		50.50
Fiscal Year Ended March 31, 2019:
Granted	87,621		64.53		—		—		54,800		57.12
Vested	(99,549	)	59.09		(8,950	)	44.25		(49,092	)	45.06
Forfeited	—		—		—		—		(9,834	)	45.55
Unvested at end of year	324,991		$	57.12	21,250		$	41.58	146,874		$	55.12

Shares granted and vested in the above table include dividend equivalents on RSUs and any shares awarded above the base grant under the performance provisions of PSAs. Shares forfeited or canceled include any reductions from the base PSA grant under those same performance provisions. The fair values of RSUs, restricted stock, and PSAs are based on the market price of the common stock on the grant date.

Stock-Based Compensation Expense

Fair value expense for stock-based compensation is recognized ratably over the period from grant date to the earlier of (1) the vesting date of the award, or (2) the date the grantee is eligible to retire without forfeiting the award. For employees who are already eligible to retire at the date an award is granted, the total fair value of the award is recognized as expense at the date of grant. For the fiscal years ended March 31, 2019, 2018, and 2017, total stock-based compensation expense and the related income tax benefit recognized were as follows:

	Fiscal Year Ended March 31,
	2019		2018		2017
Total stock-based compensation expense	$	8,152	$	7,610	$	6,475
Income tax benefit recorded on stock-based compensation expense	$	1,712	$	2,397	$	2,266

At March 31, 2019, the Company had $5.6 million of unrecognized compensation expense related to stock-based awards, which will be recognized over a weighted-average period of approximately 1.2 years.