Stock-Based Compensation

6 Months Ended

Sep. 30, 2023

Note 6: 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 authorizes grants of stock awards, stock options, and performance-based awards 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 awards 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 $3.1 million and $2.4 million for the three months ended September 30, 2023 and 2022, respectively. The Company recognized stock-based compensation expense of $4.6 million and $3.5 million for the six months ended September 30, 2023 and 2022, respectively.

During the first six months of fiscal 2024, the Company granted performance-based stock awards and restricted stock awards. The performance metrics for the performance-based stock awards are based upon a target three-year average cash flow return on invested capital and a target three-year average growth in consolidated net earnings before interest, taxes, depreciation, amortization, and certain other adjustments (“Adjusted EBITDA”) at the end of the performance period ending March 31, 2026.

During the first six months of fiscal 2023, the Company granted restricted stock awards, stock options, and performance cash awards.

The weighted-average fair value of stock-based compensation awards granted during the six months ended September 30, 2023 and 2022 were as follows:

	Six months ended September 30,
	2023				2022
			Fair Value				Fair Value
	Shares		Per Award		Shares		Per Award
Performance stock awards		0.3	$	27.29		-		-
Restricted stock awards		0.1	$	33.19		0.4	$	12.51
Stock options		-		-		0.2	$	6.97

As of September 30, 2023, unrecognized compensation expense related to non-vested stock-based compensation awards, which will be recognized as expense over the remaining service periods, was as follows:

	Unrecognized Compensation Expense		Weighted-Average Remaining Service Period in Years
Performance stock awards	$	13.3		2.5
Restricted stock awards		8.0		1.9
Stock options		1.6		1.6
Total	$	22.9		2.2