SHARE - BASED COMPENSATION

3 Months Ended

Jun. 30, 2011

SHARE - BASED COMPENSATION

SHARE - BASED COMPENSATION

4.  SHARE - BASED COMPENSATION

Pursuant to the Consolidated Graphics, Inc. Amended and Restated Long-Term Incentive Plan (as amended, the “Plan”), employees of the Company and members of the Company’s Board of Directors have been, or may be, granted options to purchase shares of the Company’s common stock, restricted stock unit awards or other forms of equity-based compensation. Options granted pursuant to the Plan include incentive stock options within the meaning of Section 422 of the Internal Revenue Code of 1986, as amended and non-qualified stock options. Options previously granted under the Plan were at a strike price not less than the market price of the stock at the date of grant and periodically vest over a fixed period of up to ten years. Unvested options generally are cancelled upon termination of employment and vested options generally expire shortly after termination of employment. Otherwise, options expire after final vesting at the end of a fixed period generally not in excess of an additional five years. At June 30, 2011, a total of 1,716,003 common shares were reserved for issuance pursuant to the Plan, of which 332,448 shares of the Company’s common stock were available for future grants. Of the 332,448 shares available for future grants, 37,500 shares may be granted as restricted stock unit awards.

The following table summarizes stock option activity for the three months ended June 30, 2011:

Stock Options	Shares		Weighted- Average Exercise Price
Outstanding at March 31, 2011	1,383,591		$	43.62
Granted	—		—
Exercised	(9,737	)	37.85
Forfeited or expired	(6,966	)	22.68
Outstanding at June 30, 2011 (a)	1,366,888		$	43.77
Exercisable at June 30, 2011 (a)	971,209		$	45.12

(a) Stock options outstanding as of June 30, 2011 have a weighted average remaining contractual life of 5.4 years. Based on the market value of the Company’s common stock on June 30, 2011, outstanding stock options have an aggregate intrinsic value of $16,461 and exercisable stock options have an aggregate intrinsic value of $10,264.

The following table summarizes restricted stock unit award activity for the three months ended June 30, 2011:

Restricted Stock Unit Awards	Shares
Outstanding at March 31, 2011	38,959
Granted	—
Vested and issued	(22,292	)
Forfeited or expired	—
Outstanding at June 30, 2011 (a)	16,667

(a) Restricted stock units outstanding as of June 30, 2011 have a weighted average remaining contractual term of 1.0 years and a total intrinsic value of $915,851.

The Company accounts for share-based compensation by measuring the cost of employee services received in exchange for an award of equity instruments, including grants of stock options and restricted stock unit awards, based on the fair value of the award at the date of grant. The fair value of stock options is determined using the Black-Scholes model. Restricted stock unit awards are valued at the closing stock price on date of grant.