Under the Company’s Restated Omnibus Incentive Plan (formerly the Restated 1988 Executive Stock Option Plan) (“the Plan”) as in effect at March 31, 2021, options exercisable for up to 20,615,000 shares of the Company’s common stock may be granted over the life of the Plan to key employees, non-employee directors, and consultants at exercise prices not less than the fair market value of the common stock on the date of grant. Options granted under the Plan are non-statutory stock options and generally vest 25% one year from the date of grant, with the remaining 75% vesting ratably each month for the next 36 months. The options granted to employees and the Company’s Board of Directors expire at the end of five years and ten years from date of grant, respectively. All options granted in fiscal 2021 and 2020 were granted with an exercise price equal to the fair value of the Company’s common stock on the grant date.

The Company records compensation expense for employee stock options based on the estimated fair value of the options on the date of grant using the Black-Scholes option-pricing model with the assumptions included in the table below. The Company uses historical data, among other factors, to estimate the expected volatility, the expected dividend yield, and the expected option life. Upon adoption of ASU 2016-09, the Company accounts for forfeitures as they occur, rather than estimate expected forfeitures. The risk-free rate is based on the interest rate paid on a U.S. Treasury issue with a term similar to the estimated life of the option.

The fair value of each grant is estimated on the date of grant using the Black-Scholes option-pricing model. The following weighted average assumptions were used for the fiscal years ended March 31, 2021, 2020 and 2019:

	Fiscal 2021			Fiscal 2020			Fiscal 2019
Expected volatility		34	%		33	%		34	%
Risk free interest rate	0.21% to 0.46%			1.42% to 2.33%			2.46% to 2.96%
Dividend yield		0.0	%		0.0	%		0.0	%
Weighted average option life	4.4 to 4.5 years			4.4 to 4.5 years			4.4 to 4.5 years

For the fiscal years ended March 31, 2021, 2020 and 2019, the Company recorded share-based compensation expense of $4,978,000, $4,485,000, and $4,349,000, respectively. The table below shows the amounts recognized in the financial statements for the fiscal years ended March 31, 2021, 2020 and 2019.

	Fiscal 2021		Fiscal 2020		Fiscal 2019
Cost of revenue	$	2,020,000	$	2,028,000	$	1,896,000
General and administrative		2,958,000		2,457,000		2,453,000
Total cost of stock-based compensation included in income before income taxes		4,978,000		4,485,000		4,349,000
Amount of income tax benefit recognized		1,057,000		985,000		1,048,000
Amount charged to net income	$	3,921,000	$	3,500,000	$	3,301,000
Effect on basic earnings per share	$	0.22	$	0.19	$	0.18
Effect on diluted earnings per share	$	0.22	$	0.19	$	0.17

The following table summarizes information for all stock options for the fiscal years March 31, 2021, 2020 and 2019:

	Fiscal 2021			Fiscal 2020			Fiscal 2019
Options outstanding – beginning of fiscal year		1,029,103			1,058,411			1,064,439
Options granted		234,175			271,575			290,300
Options exercised		(278,094	)		(235,932	)		(250,604	)
Options cancelled/forfeited		(48,026	)		(64,951	)		(45,724	)
Options outstanding – end of fiscal year		937,158			1,029,103			1,058,411
During the fiscal year, weighted average exercise price of:
Options granted	$	81.12		$	79.49		$	57.27
Options exercised	$	44.17		$	38.34		$	36.44
Options cancelled/forfeited	$	61.26		$	59.87		$	36.71
At the end of fiscal year:
Price range of outstanding options	$21.87-$103.31			$20.08-$88.22			$12.71-$62.31
Weighted average exercise price per share	$	64.28		$	54.87		$	45.17
Options available for future grants		880,542			316,691			523,415
Exercisable options		421,964			468,107			440,386

The following table summarizes the status of stock options outstanding and exercisable at March 31, 2021:

Range of Exercise Prices	Number of Outstanding Options		Weighted Average Remaining Contractual Life		Outstanding Options – Weighted Average Exercise Price		Exercisable Options – Number of Exercisable Options		Exercisable Options – Weighted Average Exercise Price
$21.87 to $49.40		253,107		2.18	$	39.70		226,736	$	38.65
$49.41 to $59.32		247,080		2.86		57.14		122,803		57.97
$59.33 to $87.49		263,715		4.11		77.66		65,983		76.49
$87.50 to $103.31		173,256		4.52		89.97		6,442		88.22
Total		937,158		3.34	$	64.28		421,964	$	50.95

The following table summarizes the status of all outstanding options at March 31, 2021, and changes during the fiscal year then ended:

	Number of Options			Weighted Average Exercise Price per Share		Weighted Average Remaining Contractual Life (Years)		Aggregate Intrinsic Value as of March 31, 2021
Options outstanding, March 31, 2020		1,029,103		$	54.87
Granted		234,175			81.12
Exercised		(278,094	)		44.17
Cancelled – forfeited		(43,436	)		62.99
Cancelled – expired		(4,590	)		44.93
Options outstanding, March 31, 2021		937,158		$	64.28		3.34	$	35,924,719
Options vested and expected to vest		772,156		$	52.45		3.33	$	33,914,366
Ending exercisable		421,964		$	50.95		2.48	$	21,790,325

The weighted average fair value of options granted during fiscal 2021, 2020 and 2019 was $23.24, $22.99, and $19.83, respectively. The total intrinsic value of options exercised during fiscal years 2021, 2020 and 2019 was $12,272,000, $10,281,000, and $5,817,000 respectively.

Included in the above-noted stock option grants and stock compensation expense are performance-based stock options which vest only upon the Company’s achievement of certain earnings per share targets on a calendar year basis, as determined by the Company’s Board of Directors. These options were valued in the same manner as the time-based options. However, the Company only recognizes stock compensation expense to the extent that the targets are determined to be probable of being achieved, which triggers the vesting of the performance options. During the fiscal years ended March 31, 2021, 2020 and 2019, the Company recognized stock compensation expense for performance-based options in the amount of $2,080,000, $1,625,000, and $1,631,000, respectively.

The Company received $11,494,000, $8,147,000, and $7,241,000 of cash receipts from the exercise of stock options during fiscal 2021, 2020 and 2019, respectively. As of March 31, 2021, $5,689,000 of total unrecognized compensation costs related to stock options is expected to be recognized over a weighted average period of 3 years.