Stock-Based Compensation

6 Months Ended

Sep. 28, 2019

Share-based Payment Arrangement [Abstract]

The Company maintains stock incentive plans whereby stock option grants or awards of restricted stock may be made to certain officers, directors and key employees. The plans, which are shareholder approved, permit the award of up to 1,650,000 shares of the Company's common stock, of which 229,347 shares were still available for grant as of September 28, 2019. When options are exercised or restricted stock vests, new shares of the Company's common stock are issued, or the restricted stock shares are no longer restricted. Awards may not be granted below 100% of the fair market value of the Company's common stock at the date of grant and generally expire seven years from the date of grant. Stock options and awards of restricted stock vest over a defined period or based on certain performance criteria, as determined by the plan administrator (the Compensation Committee of the Board of Directors, which consists of independent directors), but typically is no more than five years. The stock incentive plans provide for accelerated vesting of stock options and removal of restrictions on restricted stock awards upon a change in control (as defined in the plans).

Stock-based compensation cost charged against income for the three and six months ended September 28, 2019 was $818,000 and $1.4 million, respectively. The Company recorded stock-based compensation expense of $1.5 million and $2.1 million for the three and six months ended September 29, 2018, respectively.

As of September 28, 2019, total unrecognized compensation cost related to stock options was approximately $6.6 million and the related weighted-average period over which it is expected to be recognized is approximately 3.06 years.

Stock Options. The fair value of each stock option award is estimated on the date of the grant using the Black-Scholes-Merton option pricing model, which requires the input of assumptions. The Company estimates the risk-free interest rate based on the U.S. Treasury security rate in effect at the time of the grant. The expected life of the options, volatility and dividend rates are estimated based on historical data.

The following table summarizes stock option activity for the six months ended September 28, 2019:



	Number of Options
Outstanding at March 30, 2019	411,111
Granted	74,450
Exercised	(47,724	)
Canceled or expired	—
Outstanding at September 28, 2019	437,837
Exercisable at September 28, 2019	219,838

Restricted Stock Awards. The fair value of restricted stock awards is estimated as the closing price of the Company's common stock on the date of grant. A summary of restricted stock award activity is as follows:



	Number of Shares
	Performance-Based Awards	Service-Based Awards		Total
Outstanding at March 30, 2019	—	—		—
Awarded	7,200	4,650		11,850
Released	—	(400	)	(400	)
Canceled or expired	—	—		—
Outstanding at September 28, 2019	7,200	4,250		11,450
Unvested target stock awards that vest based upon performance conditions through fiscal year 2022	7,200