Stock-Based Compensation

6 Months Ended

Sep. 30, 2018

Stock-Based Compensation [Abstract]

Stock-Based Compensation

Note 5: Stock-Based Compensation

The Company’s stock-based incentive programs consist of the following: (1) a long-term incentive compensation program for officers and other executives that consists of stock awards, stock options, and performance-based stock awards granted for retention and performance, (2) a discretionary equity program for other management and key employees, and (3) stock awards for non-employee directors.

The Company calculates compensation expense based upon the fair value of the instruments at the time of grant and subsequently recognizes expense ratably over the respective vesting periods of the stock-based awards.  The Company recognized stock-based compensation expense of $3.2 million and $3.1 million for the three months ended September 30, 2018 and 2017, respectively. The Company recognized stock-based compensation expense of $5.2 million and $5.4 million for the six months ended September 30, 2018 and 2017, respectively. The performance component of awards granted under the Company’s long-term incentive plan during the first quarter of fiscal 2019 is based upon both a target three-year average cash flow return on invested capital and a target three-year average revenue growth at the end of the three-year performance period.

The fair value of stock-based compensation awards granted during the six months ended September 30, 2018 and 2017 were as follows:

	Six months ended September 30,
	2018				2017
	Shares		Fair Value Per Award		Shares		Fair Value Per Award
Stock options		0.2	$	7.81		0.2	$	7.30
Restricted stock awards		0.2	$	17.90		0.2	$	15.90
Performance stock awards		0.2	$	17.90		0.2	$	15.90
Unrestricted stock awards		0.1	$	17.60		0.1	$	16.95

The Company used the following assumptions in determining fair value for stock options:

	Six months ended September 30,
	2018			2017
Expected life of awards in years		6.3			6.4
Risk-free interest rate		2.8	%		1.9	%
Expected volatility of the Company's stock		39.7	%		44.3	%
Expected dividend yield on the Company's stock		0.0	%		0.0	%

As of September 30, 2018, unrecognized compensation expense related to non-vested stock-based compensation awards, which will be amortized over the remaining service periods, was as follows:

	Unrecognized Compensation Expense		Weighted-Average Remaining Service Period in Years
Stock options	$	3.3		2.9
Restricted stock awards		7.5		2.9
Performance stock awards		5.8		1.9
Total	$	16.6		2.6