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SHARE-BASED EMPLOYEE COMPENSATION | 6 Months Ended
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Sep. 30, 2017
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] |
SHARE-BASED EMPLOYEE COMPENSATION | (H) Share-BASED EMPLOYEE COMPENSATION On August 7, 2013, our stockholders approved the Eagle Materials Inc. Amended and Restated Incentive Plan (the “Plan”), which increased the shares we are authorized to issue as awards by 3,000,000 (1,500,000 of which may be stock awards). Under the terms of the Plan, we can issue equity awards, including stock options, restricted stock units (“RSUs”), restricted stock and stock appreciation rights to employees of the Company and members of the Board of Directors. Awards that were already outstanding prior to the approval of the Plan on August 7, 2013 remain outstanding. The Compensation Committee of our Board of Directors specifies the terms for grants of equity awards under the Plan. Long-Term Compensation Plans - Options. In May 2017, the Compensation Committee approved the granting of an aggregate of 58,055 performance vesting stock options pursuant to the Plan to certain officers and key employees that will be earned if certain performance conditions are satisfied (the “Fiscal 2018 Employee Performance Stock Option Grant”). The performance criterion for the Fiscal 2018 Employee Performance Stock Option Grant is based upon the achievement of certain levels of return on equity (as defined in the option agreements), ranging from 11.0% to 18.0%, for the fiscal year ending March 31, 2018. All stock options will be earned if the return on equity is 18.0% or greater, and the percentage of shares earned will be reduced proportionately to approximately 66.7% if the return on equity is 11.0%. If the Company does not achieve a return on equity of at least 11.0%, all stock options granted will be forfeited. Following any such reduction, restrictions on the earned stock options will lapse ratably over four years, with the first fourth lapsing promptly following the determination date, and the remaining restrictions lapsing on March 31, 2019 through 2021. The stock options have a term of ten years from the date of grant. The Compensation Committee also approved the granting of 48,379 time vesting stock options to the same officers and key employees, which vest ratably over four years (the “Fiscal 2018 Employee Time Vesting Stock Option Grant). In August 2017, we granted 6,052 options to members of the Board of Directors (the “Fiscal 2018 Board of Directors Stock Option Grant”). Options granted under the Fiscal 2018 Board of Directors Stock Option Grant vest immediately and can be exercised from the date of grant until their expiration on the tenth anniversary of the date of the grant. The Fiscal 2018 Employee Performance Stock Option Grant, Fiscal 2018 Employee Time Vesting Stock Option Grant and Fiscal 2018 Board of Directors Stock Option Grant were valued at the grant date using the Black-Scholes option pricing model. The weighted-average assumptions used in the Black-Scholes model to value the option awards in fiscal 2018 are as follows:
|  | Fiscal 2018 |
Dividend Yield |  |  | 1.3% |
Expected Volatility |  |  | 36.3% |
Risk Free Interest Rate |  |  | 2.1% |
Expected Life |  | 6.0 years |
Stock option expense for all outstanding stock option awards totaled approximately $1.3 million and $2.2 million for the three and six months ended September 30, 2017, respectively and approximately $1.8 million and $3.0 million for the three and six months ended September 30, 2016, respectively. At September 30, 2017, there was approximately $8.9 million of unrecognized compensation cost related to outstanding stock options, which is expected to be recognized over a weighted-average period of 2.8 years. The following table represents stock option activity for the six months ended September 30, 2017:
|  | Number of Shares |  |  | Weighted- Average Exercise Price |
Outstanding Options at Beginning of Period |  |  | 1,323,379 |  |  | $ | 66.07 |
Granted |  |  | 119,986 |  |  | $ | 100.20 |
Exercised |  |  | (388,675 | ) |  | $ | 58.95 |
Cancelled |  |  | (16,742 | ) |  | $ | 78.05 |
Outstanding Options at End of Period |  |  | 1,037,948 |  |  | $ | 72.49 |
Options Exercisable at End of Period |  |  | 635,676 |  |  | $ | 65.13 |
Weighted-Average Fair Value of Options Granted during the Period |  | $ | 33.37 |  |  |  |  |
The following table summarizes information about stock options outstanding at September 30, 2017:
|  | Outstanding Options |  |  | Exercisable Options |
Range of Exercise Prices |  | Number of Shares Outstanding |  |  | Weighted - Average Remaining Contractual Life |  |  | Weighted - Average Exercise Price |  |  | Number of Shares Outstanding |  |  | Weighted - Average Exercise Price |
$23.17 – $ 29.84 |  |  | 69,110 |  |  |  | 3.84 |  |  | $ | 23.47 |  |  |  | 69,110 |  |  | $ | 23.47 |
$33.43 – $ 37.34 |  |  | 108,582 |  |  |  | 4.71 |  |  | $ | 33.93 |  |  |  | 108,582 |  |  | $ | 33.93 |
$53.22 – $ 77.67 |  |  | 320,137 |  |  |  | 7.45 |  |  | $ | 70.94 |  |  |  | 164,094 |  |  | $ | 69.22 |
$79.73 – $ 106.00 |  |  | 540,119 |  |  |  | 7.82 |  |  | $ | 87.43 |  |  |  | 293,890 |  |  | $ | 84.18 |
|  |  | 1,037,948 |  |  |  | 7.11 |  |  | $ | 72.49 |  |  |  | 635,676 |  |  | $ | 65.13 |
At September 30, 2017, the aggregate intrinsic value for outstanding and exercisable options was approximately $35.5 million and $26.4 million, respectively. The total intrinsic value of options exercised during the six months ended September 30, 2017 was approximately $16.2 million. Restricted Stock. In May 2017, the Compensation Committee approved the granting of an aggregate of 52,646 shares of performance vesting restricted stock to certain officers and key employees that will be earned if certain performance conditions are satisfied (the “Fiscal 2018 Employee Restricted Stock Performance Award”). The performance criterion for the Fiscal 2018 Employee Restricted Stock Performance Award is based upon the achievement of certain levels of return on equity (as defined in the award agreement), ranging from 11.0% to 18.0%, for the fiscal year ending March 31, 2018. All restricted shares will be earned if the return on equity is 18.0% or greater, and the percentage of shares earned will be reduced proportionately to approximately 66.7% if the return on equity is 11.0%. If the Company does not achieve a return on equity of at least 11.0%, all awards will be forfeited. Following any such reduction, restrictions on the earned shares will lapse ratably over four years, with the first fourth lapsing promptly following the determination date, and the remaining restrictions lapsing on March 31, 2019 through 2021. The Compensation Committee also approved the granting of 43,874 shares of time vesting restricted stock to the same officers and key employees, which vest ratably over four years (the “Fiscal 2018 Employee Restricted Stock Time Vesting Award”). In August 2017, we awarded 11,444 shares of restricted stock to members of the Board of Directors (the “Board of Directors Fiscal 2018 Restricted Stock Award”), which vests six months after the grant date. The Fiscal 2018 Employee Restricted Stock Performance Award and the Fiscal 2018 Employee Restricted Stock Time Vesting Award were valued at the closing price of the stock on the date of grant, and are being expensed over a four year period. The Board of Director Fiscal 2018 Restricted Stock Awards were valued at the closing price of the stock on the date of grant, and are being expensed over a six month period. Expense related to restricted shares was approximately $2.5 million and $5.0 million for the three and six months ended September 30, 2017, respectively and approximately $1.8 million and $3.2 million for the three and six months ended September 30, 2016, respectively. At September 30, 2017, there was approximately $22.4 million of unearned compensation from restricted stock, which will be recognized over a weighted-average period of 2.6 years. The number of shares available for future grants of stock options, restricted stock units, stock appreciation rights and restricted stock under the Plan was 4,144,352 at September 30, 2017.

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- Definition The entire disclosure for compensation-related costs for equity-based compensation, which may include disclosure of policies, compensation plan details, allocation of equity compensation, incentive distributions, equity-based arrangements to obtain goods and services, deferred compensation arrangements, employee stock ownership plan details and employee stock purchase plan details. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 718 -URI http://asc.fasb.org/topic&trid=2228938 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 505 -SubTopic 50 -URI http://asc.fasb.org/subtopic&trid=2208855 + Details
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