Benefit Plans

Retirement Plan

The Company provides a defined contribution employee benefit plan (401(k) plan) covering full-time employees, whereby employees can invest up to the maximum designated for that year. The Company makes a matching contribution equal to 50% of the employees' contributions for the first 6% of gross pay. The Company's expense under this plan was $1,432,170, $1,290,659 and $1,175,574, for the years ended March 31, 2013, 2012 and 2011, respectively.

Supplemental Executive Retirement Plan

The Company has instituted a Supplemental Executive Retirement Plan (“SERP”), which is a non-qualified executive benefit plan in which the Company agrees to pay the executive additional benefits in the future, usually at retirement, in return for continued employment by the executive. The Company selects the key executives who participate in the SERP. The SERP is an unfunded plan, which means there are no specific assets set aside by the Company in connection with the establishment of the plan. The executive has no rights under the agreement beyond those of a general creditor of the Company. In May 2009, the Company instituted a second Supplemental Executive Retirement Plan (“SERP”) to provide to one executive the same type of benefits as are in the original SERP but for which he would not have qualified due to age. This second SERP is also an unfunded plan with no specific assets set aside by the Company in connection with the plan. For the years ended March 31, 2013, 2012 and 2011, contributions of $1,022,979, $971,779 and $924,177, respectively, were charged to operations related to the SERP. The unfunded liability was $7,470,918, $6,732,123 and $6,044,528, as of March 31, 2013, 2012 and 2011, respectively.

For the three years presented, the unfunded liability was estimated using the following assumptions: an annual salary increase of 3.5% for all 3 years; a discount rate of 6% for all 3 years; and a retirement age of 65.

Executive Deferred Compensation Plan

The Company has an Executive Deferral Plan. Eligible executives and directors may elect to defer all or a portion of their incentive compensation to be paid under the Executive Deferral Plan. As of March 31, 2013 and 2012, no executive had deferred compensation under this plan.

Stock Option Plans

The Company has a 2002 Stock Option Plan, a 2005 Stock Option Plan, a 2008 Stock Option Plan, and a 2011 Stock Option Plan for the benefit of certain directors, officers, and key employees. Under these plans, 4,100,000 shares of authorized common stock have been reserved for issuance pursuant to grants approved by the Compensation and Stock Option Committee of the Board of Directors. Stock options granted under these plans have a maximum duration of 10 years, may be subject to certain vesting requirements, which are generally five years for officers, directors, and key employees, and are priced at the market value of the Company's common stock on the date of grant of the option. At March 31, 2013, there were 397,188 shares available for grant under the plans.

Stock-based compensation is recognized as provided under FASB ASC Topic 718-10 and FASB ASC Topic 505-50. FASB ASC Topic 718-10 requires all share-based payments to employees, including grants of employee stock options, to be recognized as compensation expense over the requisite service period (generally the vesting period) in the financial statements based on their fair values. The impact of forfeitures that may occur prior to vesting is also estimated and considered in the amount recognized. Stock option compensation is recognized as an expense over the unvested portion of all stock option awards granted based on the fair values estimated at grant date in accordance with the provisions of FASB ASC Topic 718-10. The Company has applied the Black-Scholes valuation model in determining the fair value of the stock option awards. Compensation expense is recognized only for those options expected to vest, with forfeitures estimated based on historical experience and future expectations.

The weighted-average fair value at the grant date for options issued during the years ended March 31, 2013, 2012 and 2011 was $36.06, $35.94 and $23.96 per share, respectively. The following is a summary of the Company’s weighted-average assumptions used to estimate the weighted-average per share fair value of options granted on the date of grant using the Black-Scholes option-pricing model:



	2013		2012		2011
Dividend yield	0	%	0	%	0	%
Expected volatility	56.15	%	56.85	%	57.41	%
Average risk-free interest rate	0.80	%	1.12	%	1.55	%
Expected life	5.6 years		6.0 years		6.4 years
Vesting period	5.0 years		5.0 years		5.0 years

The expected stock price volatility is based on the historical volatility of the Company’s stock for a period approximating the expected life. The expected life represents the period of time that options are expected to be outstanding after their grant date. The risk-free interest rate reflects the interest rate at grant date on zero-coupon U.S. governmental bonds that have a remaining life similar to the expected option term.

Option activity for the year ended March 31, 2013 was as follows:



	Shares		Weighted Average Exercise Price		Weighted Average Remaining Contractual Term	Aggregate Intrinsic Value
Options outstanding, beginning of year	1,041,500		$	37.95
Granted	559,000		71.43
Exercised	(332,665	)	29.89
Forfeited	(17,950	)	49.64
Expired	(300	)	43.04
Options outstanding, end of period	1,249,585		$	54.90	7.98	$	38,696,623
Options exercisable, end of period	205,305		$	33.00	4.50	$	10,855,260

The aggregate intrinsic value reflected in the table above represents the total pre-tax intrinsic value (the difference between the closing stock price on March 31, 2013 and the exercise price, multiplied by the number of in-the-money options) that would have been received by option holders had all option holders exercised their options as of March 31, 2013. This amount will change as the market price per share changes. The total intrinsic value of options exercised during the periods ended March 31, 2013, 2012 and 2011 were as follows:



2013		2012		2011
$	14,049,751	$	12,049,546	$	11,151,259

As of March 31, 2013, total unrecognized stock-based compensation expense related to non-vested stock options amounted to approximately $24.3 million, which is expected to be recognized over a weighted-average period of approximately 4.2 years.

The following table summarizes information regarding stock options outstanding at March 31, 2013:



Range of Exercise Price	Options Outstanding	Weighted Average Remaining Contractual Life	Weighted Average Exercise Price		Options Exercisable	Weighted Average Exercise Price
15.00 - $16.99	92,550	4.64	$	16.57	39,350	$	16.18
23.00 - $23.99	5,500	1.58	23.53		5,500	23.53
25.00 - $25.99	45,400	2.63	25.11		45,400	25.11
26.00 - $27.99	125,550	6.61	26.73		18,550	26.73
28.00 - $28.99	38,250	3.30	28.25		38,250	28.25
43.00 - $43.99	173,015	7.61	43.04		16,295	43.04
48.00 - $49.99	13,400	3.58	49.00		13,400	49.00
66.00 - $67.99	409,920	9.13	67.40		28,560	67.70
72.00 - $73.99	10,000	9.70	73.41		—	—
74.00 - $75.99	333,000	9.69	74.08		—	—
76.00 - $77.99	3,000	9.86	77.31		—	—
15.00 - $77.99	1,249,585	7.98	$	54.90	205,305	$	33.00

Restricted Stock

On February 5, 2013, the Company granted 85,000 shares of restricted stock (which are equity classified), with a grant date fair value of $77.31 per share, respectively, to certain officers. The 85,000 shares will vest as follows, if the Company achieves the following performance goals during any successive trailing four quarters during the measurement period beginning on October 1, 2012 and ending March 31, 2017:



Trailing 4 quarter EPS Target		Restricted Shares Eligible for Vesting (Percentage of Award)
$13.00		25%
$14.50		25%
$16.00		25%
$18.00		25%

On December 7, 2012, the Company granted 69,600 shares of restricted stock (which are equity classified), with a grant date fair value of $74.08 per share, respectively, to certain officers and certain independent directors. On December 11, 2012 the Company granted 1,200 shares of restricted stock (which are equity classified), with a grant date fair value of $73.41 per share, respectively, to a certain officer. The 70,800 shares will vest on April 30, 2015 based on the Company’s achievement of the following performance goals as of March 31, 2015:



EPS Target		Restricted Shares Eligible for Vesting (Percentage of Award)
$10.29		100%
$9.76		67%
$9.26		33%
Below $9.26		0%

On December 7, 2012, the Company granted 350,900 shares of restricted stock (which are equity classified), with a grant date fair value of $74.08 per share, respectively, to certain officers and certain independent directors. On December 11, 2012, the Company granted 7,800 shares of restricted stock (which are equity classified), with a grant date fair value of $73.41 per share, respectively, to a certain officer. The 358,700 shares will vest as follows, if the Company achieves the following performance goals during any successive trailing four quarters during the measurement period beginning on October 1, 2012 and ending March 31, 2017:



Trailing 4 quarter EPS Target		Restricted Shares Eligible for Vesting (Percentage of Award)
$13.00		25%
$14.50		25%
$16.00		25%
$18.00		25%

On April 30, 2012, the Company granted 10,000 shares of restricted stock (which are equity classified) with a grant date fair value of $66.51 per share to certain independent directors. All of the shares granted vested immediately.

On November 7, 2011, the Company granted 15,077 shares of restricted stock (which are equity classified), with a grant date fair value of $67.70 per share, to certain executive officers. One-third of the restricted stock vested immediately, one-third vested on November 7, 2012, and one-third will vest on November 7, 2013, respectively. On that same date, the Company granted an additional 24,200 shares of restricted stock (which are equity classified), with a grant date fair value of $67.70 per share, to certain officers. One-third of the restricted stock vested on November 7, 2012, and one-third of the restricted stock will vest on November 7, 2013 and 2014, respectively. On that same date, the Company granted an additional 11,139 shares of restricted stock (which are equity classified), with a grant date fair value of $67.70 per share, to certain executive officers. The 11,139 shares will vest on April 30, 2014 based on the Company’s compounded annual EPS growth according to the following schedule:



Vesting Percentage		Compounded Annual EPS Growth
100%		15% or higher
67%		12% - 14.99%
33%		10% - 11.99%
0%		Below 10%

On April 29, 2011, the Company granted 10,000 shares of restricted stock (which are equity classified) with a grant date fair value of $67.95 per share to certain independent directors. All of the shares granted vested immediately.

On November 8, 2010, the Company granted 29,080 shares of restricted stock (which are equity classified), with a grant date fair value of $43.04 per share, to certain officers. One-third of the restricted stock vested immediately, one-third vested on November 8, 2011 and the final third vested on November 8, 2012, respectively. On that same date, the Company granted an additional 15,871 shares of restricted stock (which are equity classified), with a grant date fair value of $43.04 per share, to certain executive officers. The 15,871 shares vested on April 30, 2013 based on the Company’s compounded annual EPS growth according to the following schedule:



Vesting Percentage		Compounded Annual EPS Growth
100%		15% or higher
67%		12% - 14.99%
33%		10% - 11.99%
0%		Below 10%

Compensation expense related to restricted stock is based on the number of shares expected to vest and the fair market value of the common stock on the grant date. The Company recognized $4.8 million, $2.9 million and $2.1 million of compensation expense for the years ended March 31, 2013, 2012 and 2011, respectively, related to restricted stock, which is included as a component of general and administrative expenses in the Consolidated Statements of Operations. For purposes of accruing the expense, all shares are expected to vest.

As of March 31, 2013, there was approximately $36.3 million of unrecognized compensation cost related to unvested restricted stock awards granted, which is expected to be recognized over the next 3.5 years.

A summary of the status of the Company’s restricted stock as of March 31, 2013, and changes during the year ended March 31, 2013, are presented below:



	Shares		Weighted Average Fair Value at Grant Date
Outstanding at March 31, 2012	93,999		$	50.90
Granted during the period	524,500		74.45
Vested during the period	(41,285	)	46.30
Canceled during the period	(14,758	)	41.51
Outstanding at March 31, 2013	562,456		$	73.32

Total share-based compensation included as a component of net income during the years ended March 31, 2013, 2012 and 2011 was as follows:



	2013		2012	2011
Share-based compensation related to equity classified units:
Share-based compensation related to stock options	$	7,322,653	4,867,231	3,855,348
Share-based compensation related to restricted stock	4,818,956		2,865,857	2,112,721
Total share-based compensation related to equity classified awards	$	12,141,609	7,733,088	5,968,069