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Stock-Based Compensation | 12 Months Ended
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Mar. 31, 2023
Share-Based Payment Arrangement [Abstract] |
Stock-Based Compensation | Stock-Based CompensationIn September 2015, the Company’s stockholders approved the 2015 Stock Incentive Plan (2015 SIP), the primary purpose of which is to encourage ownership in the Company by key personnel, whose long-term service is considered essential to the Company’s continued success. The 2015 SIP reserves 1,275,000 shares of the Company’s common stock for issuance to employees, directors, consultants, independent contractors, and advisors. The maximum aggregate number of shares that may be issued to employees under the 2015 SIP through the exercise of incentive stock options is 750,000. From time to time, the Company grants various types of stock-based compensation under the 2015 SIP, including time-based restricted stock units (RSUs), performance-based restricted stock units (PSUs), stock appreciation rights, and non-qualified stock options (NQSOs). The Company typically makes annual grants of RSUs and long-term incentive plan PSUs (LTIP PSUs), to key personnel, including employees and directors. Annual Awards. The Company grants annual awards under the 2015 SIP, which entitle the recipients to receive shares of the Company’s common stock upon vesting, RSUs are subject to time-based vesting criteria and typically vest in equal annual installments over three years following the date of grant. Annual award activity recorded in the consolidated statements of comprehensive income were as follows:
| Number of Shares |  | Weighted- Average Grant-Date Fair Value
Nonvested, March 31, 2020 | 162,349 |  |  | $ | 124.47 |
Granted | 47,015 |  |  | 220.31 |
Vested* | (92,614) |  |  | (104.92) |
Forfeited | (3,664) |  |  | (147.34) |
Nonvested, March 31, 2021 | 113,086 |  |  | 179.58 |
Granted | 52,256 |  |  | 363.89 |
Vested* | (60,034) |  |  | (162.37) |
Forfeited | (7,441) |  |  | (239.39) |
Nonvested, March 31, 2022 | 97,867 |  |  | 284.00 |
Granted | 51,955 |  |  | 338.99 |
Vested* | (45,092) |  |  | (249.67) |
Forfeited | (15,439) |  |  | (299.96) |
Nonvested, March 31, 2023 | 89,291 |  |  | $ | 330.57 |
* The amounts vested include shares withheld to cover taxes that are not issued to the recipient. Long-Term Incentive Plan Awards. The Company grants LTIP PSUs under the 2015 SIP that are subject to the achievement of Company performance targets. A Monte-Carlo simulation model is used to determine the grant date fair value by simulating a range of possible future stock prices for the Company and each member of the peer group over the performance periods (further defined for each individual grant below). For each grant of LTIP PSUs, the Monte-Carlo simulation model factors in key assumptions, such as the market price of the underlying common stock at the beginning and end of the reporting period, risk free interest rate, expected dividend yield when simulating total stockholder return (TSR), expected dividend yield when simulating the Company’s stock price, stock price volatility, and correlation coefficients. The Company evaluates the probability of achieving performance criteria included in its LTIP PSUs against its most current forecast at least quarterly. LTIP PSUs recorded in the consolidated statements of comprehensive income, were as follows: 2023 LTIP PSUs. During fiscal year 2023, the Company approved LTIP PSUs under the 2015 SIP (2023 LTIP PSUs), which were awarded to certain members of the Company's management team, including the Company's named executive officers and vice presidents. The 2023 LTIP PSUs are subject to vesting based on service conditions over either two or three years. In addition, the Company must meet certain revenue and pre-tax income performance targets individually over three reporting periods for the fiscal year ended March 31, 2023, and the fiscal years ending March 31, 2024, and 2025 (collectively, the 2025 Measurement Periods). The 2023 LTIP PSUs also incorporate a relative TSR modifier for both the 24-month performance period ending March 31, 2024, and the 36-month performance period ending March 31, 2025 (collectively, the 2025 Performance Periods). To the extent financial performance is achieved above the threshold levels for each of these performance criteria, the number of 2023 LTIP PSUs that will vest will increase up to a maximum of 200% of the targeted amount for that award. No vesting of any portion of the 2023 LTIP PSUs will occur if the Company fails to achieve the pre-established minimum revenue and pre-tax income amounts for each reporting period. Following the determination of the Company’s achievement with respect to the revenue and pre-tax income criteria for the 2025 Measurement Periods, the vesting of each 2023 LTIP PSU will be subject to adjustment based on the application of the TSR modifier. The amount of the adjustment will be determined based on a comparison of the Company's TSR relative to the TSR of a pre-determined set of peer group companies for the 2025 Performance Periods. The Company granted 2023 LTIP PSU awards of 32,735 at the target performance level during the fiscal year ended March 31, 2023. The weighted-average grant date fair value per share of the 2023 LTIP PSUs was $387.44. Based on the Company’s current long-range forecast, it determined that the achievement of at least the minimum threshold target performance criteria for each of the Measurement Periods for these awards was probable as of the grant date. 2022 LTIP PSUs. During fiscal year 2022, the Company approved LTIP PSUs under the 2015 SIP (2022 LTIP PSUs), which were awarded to certain members of the Company's management team, including the Company's named executive officers and vice presidents. The 2022 LTIP PSUs are subject to vesting based on service conditions over three years. In addition, the Company must meet certain revenue and pre-tax income performance targets individually over three reporting periods for the fiscal years ended March 31, 2022, and 2023, and for the fiscal year ending March 31, 2024 (collectively, the 2024 Measurement Periods). The 2022 LTIP PSUs also incorporate a relative TSR modifier for 36-month performance period ending March 31, 2024 (the 2024 Performance Periods). To the extent financial performance is achieved above the threshold levels for each of these performance criteria, the number of 2022 LTIP PSUs that will vest will increase up to a maximum of 200% of the targeted amount for that award. No vesting of any portion of the 2022 LTIP PSUs will occur if the Company fails to achieve the pre- established minimum revenue and pre-tax income amounts for each reporting period. Following the determination of the Company’s achievement with respect to the revenue and pre-tax income criteria for the 2024 Measurement Periods, the vesting of each 2022 LTIP PSU will be subject to adjustment based on the application of the TSR modifier. The amount of the adjustment will be determined based on a comparison of the Company's TSR relative to the TSR of a pre-determined set of peer group companies for the 2024 Performance Periods. The Company granted 2022 LTIP PSU awards of 34,822 at the target performance level during the fiscal year ended March 31, 2022. The weighted-average grant date fair value of the 2022 LTIP PSUs was $407.37 per share. The Company currently expects to exceed the threshold financial performance levels for each of the performance criteria, and therefore the number of 2022 LTIP PSUs that is expected to vest is above 100% of the targeted amount for the awards. 2021 LTIP PSUs. During fiscal year 2021, the Company approved LTIP PSUs under the 2015 SIP (2021 LTIP PSUs), which were awarded to certain members of the Company's management team, including the Company's named executive officers and vice presidents. The 2021 LTIP PSUs are subject to vesting based on service conditions over either two or three years. In addition, the Company must meet certain revenue and pre-tax income performance targets individually over three reporting periods for the fiscal years ended March 31, 2021, 2022 and 2023 collectively, the 2023 Measurement Periods) and incorporates a relative TSR modifier for both the 24-month performance period and 36-month performance period ending March 31, 2023 (collectively, the 2023 Performance Periods). To the extent financial performance is achieved above the threshold levels for each of these performance criteria, the number of 2021 LTIP PSUs that will vest will increase up to a maximum of 200% of the targeted amount for that award. No vesting of any portion of the 2021 LTIP PSUs will occur if the Company fails to achieve the pre-established minimum revenue and pre-tax income amounts for each reporting period. Following the determination of the Company’s achievement with respect to the revenue and pre-tax income criteria for the 2023 Measurement Periods, the vesting of each 2021 LTIP PSU will be subject to adjustment based on the application of the TSR modifier. The amount of the adjustment will be determined based on a comparison of the Company's TSR relative to the TSR of a pre-determined set of peer group companies for the 2023 Performance Periods. The Company granted 2021 LTIP PSU awards of 19,890 at the target performance level during the year ended March 31, 2021. The weighted-average grant date fair value of the 2021 LTIP PSUs was $376.45 per share. The Company currently expects to exceed the target financial performance levels for each of the performance criteria, and the number of 2021 LTIP PSUs that is expected to vest will be at 200% of the maximum amount for the awards. LTIP PSUs activity recorded in the consolidated statements of comprehensive income were as follows:
| Number of Shares |  | Weighted- Average Grant-Date Fair Value
Nonvested, March 31, 2020 | 153,446 |  |  | $ | 133.53 |
Granted* | 39,780 |  |  | 376.45 |
Vested** | (77,098) |  |  | (106.37) |
Nonvested, March 31, 2021 | 116,128 |  |  | 215.30 |
Granted* | 69,644 |  |  | 358.75 |
Vested** | (69,816) |  |  | (131.33) |
Forfeited | (12,924) |  |  | (239.81) |
Nonvested, March 31, 2022 | 103,032 |  |  | 344.25 |
Granted* | 65,470 |  |  | 330.70 |
Vested** | (30,104) |  |  | (319.81) |
Forfeited | (27,194) |  |  | (323.92) |
Nonvested, March 31, 2023 | 111,204 |  |  | $ | 347.86 |
*The amounts granted are the maximum amounts under the terms of the applicable LTIP PSUs. ** The amounts vested include shares withheld to cover taxes that are not issued to the recipient. Long-Term Incentive Plan Options. The Company approved the issuance of LTIP NQSOs under the 2015 SIP, including the November 2016 (2017 LTIP NQSOs) and June 2017 (2018 LTIP NQSOs) grants, which were awarded to certain members of the Company’s management team, with a maximum contractual term of seven years from the grant date. If the recipient provided continuous service, the LTIP NQSOs would vest after the Company had determined it achieved the target performance criteria by the date specified in the award. Each vested LTIP NQSO provides the recipient the right to purchase a specified number of shares of the Company’s common stock at a fixed exercise price per share based on the closing price of the common stock on the date of grant. As of March 31, 2020, the Company determined that the target performance criteria related to the 2018 LTIP NQSOs for the fiscal year ended March 31, 2020, were achieved. During the years ended March 31, 2023, 2022, and 2021, no LTIP NQSOs were granted, but options previously granted remain exercisable for both the 2017 LTIP NQSOs and the 2018 LTIP NQSOs. LTIP option activity recorded in the consolidated statements of comprehensive income were as follows:
| Number of Shares |  | Weighted- Average Grant-Date Fair Value |  | Weighted- Average Remaining Contractual Term (Years) |  | Aggregate Intrinsic Value
Vested, March 31, 2020 | 302,939 |  |  | $ | 66.02 |  |  | 5.0 |  | $ | 20,594 |
Exercised | (107,197) |  |  | (63.20) |  |  |  |  |
Vested, March 31, 2021 | 195,742 |  |  | 67.56 |  |  | 3.6 |  | 51,452 |
Exercised | (45,810) |  |  | (67.11) |  |  |  |  |
| Number of Shares |  | Weighted- Average Grant-Date Fair Value |  | Weighted- Average Remaining Contractual Term (Years) |  | Aggregate Intrinsic Value
Vested, March 31, 2022 | 149,932 |  |  | 67.70 |  |  | 2.6 |  | 30,896 |
Exercised* | (64,043) |  |  | (68.66) |  |  |  |  |
Vested, March 31, 2023 | 85,889 |  |  | $ | 66.99 |  |  | 1.8 |  | $ | 33,037 |
*The amounts exercised include shares withheld to cover taxes that are not issued to the recipient. Grants to Directors. Each of the Company’s nonemployee directors was entitled to receive common stock with a total value of $170 for annual service on the Board of Directors during the year ended March 31, 2023. The shares are issued in equal quarterly installments with the number of shares being determined using the rolling average of the closing price of the Company’s common stock during the last ten trading days leading up to, and including, the grant date, which is in alignment with the Company’s equity grant guidelines. Each of these shares is fully vested on the date of issuance. Employee Stock Purchase Plan. The 2015 Employee Stock Purchase Plan (ESPP) authorizes 1,000,000 shares of the Company’s common stock for sale to eligible employees using their after-tax payroll deductions, which are refundable until purchases are made, and are liability-classified. ESPP shares are excluded from basic earnings per share until purchases are made but are included in diluted earnings per share as after-tax payroll deductions are made. Each consecutive purchase period is six months (purchase period) in duration and shares are purchased on the last trading day of the purchase period (no look-back provision) at a 15% discount to the closing price on that date. Purchase windows take place in February and August of each fiscal year. The net difference between the timing of compensation expense incurred and remeasured during the purchase period and purchase windows are recorded in other accrued expenses in the consolidated balance sheets. Stock-Based Compensation. Components of stock-based compensation recorded in the consolidated statements of comprehensive income were as follows:
| Years Ended March 31,
| 2023 |  | 2022 |  | 2021
Stock-based compensation |  |  |  |  |
RSUs | $ | 13,249 |  |  | $ | 12,093 |  |  | $ | 7,820 |
PSUs | — |  |  | — |  |  | 1,900 |
LTIP PSUs | 11,275 |  |  | 12,865 |  |  | 11,555 |
Grants to Directors | 1,863 |  |  | 1,507 |  |  | 1,195 |
Subtotal | 26,387 |  |  | 26,465 |  |  | 22,470 |
Other stock-based compensation |  |  |  |  |
Employee Stock Purchase Plan | 510 |  |  | 351 |  |  | 231 |
Total stock-based compensation, pre-tax | 26,897 |  |  | 26,816 |  |  | 22,701 |
Income tax benefit | (6,557) |  |  | (6,496) |  |  | (5,441) |
Total stock-based compensation, net of tax | $ | 20,340 |  |  | $ | 20,320 |  |  | $ | 17,260 |
Unrecognized Stock-Based Compensation. Total remaining unrecognized stock-based compensation as of March 31, 2023, related to non-vested awards that the Company considers probable to vest and the weighted-average period over which the cost is expected to be recognized in future periods, are as follows:
| Unrecognized Stock-based Compensation |  | Weighted-Average Remaining Vesting Period (Years)
RSUs | $ | 14,829 |  |  | 1.1
LTIP PSUs | 15,891 |  |  | 1.6
Total | $ | 30,720 |  |  |

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