Stock-Based Compensation

6 Months Ended

Sep. 30, 2020

Note 5: Stock-Based Compensation

The Company’s stock-based incentive programs consist of the following: (1) a long-term incentive plan (“LTIP”) 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 $1.4 million and $2.7 million for the three months ended September 30,2020 and 2019, respectively. The Company recognized stock-based compensation expense of $2.1 million and $4.4 million for the six months ended September 30, 2020 and 2019, respectively.

As of September 30, 2020, 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	$	1.2		2.0
Restricted stock awards		3.9		2.7
Performance stock awards		0.4		1.5
Total	$	5.5		2.5

In October 2020, the Company granted stock-based awards to officers and other executives under the LTIP. The Company granted 0.4 million each of restricted stock awards and stock options, with fair values of $6.62 and $3.32 per award, respectively. In lieu of performance-based stock awards, the Company granted performance cash awards to the LTIP participants. The performance metrics for the cash awards are based upon 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 ending March 31, 2023. These performance metrics are the same as those contained within the fiscal 2020 and 2019 performance-based stock awards.