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STOCK OPTION PLANS | 12 Months Ended
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Mar. 31, 2018
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] |
STOCK OPTION PLANS | (J) Stock Option Plans 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 may 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 of the Board of Directors approved the granting to certain officers and key employees of an aggregate of 58,055 performance vesting stock options that are earned only 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. During fiscal 2018, the adjusted return on equity was approximately 17.2%; therefore, 55,858 options were earned, with the remaining options forfeited. The earned stock options will lapse ratably over four years, with the first fourth lapsing promptly following the determination date, and the remaining options vesting on March 31, 2019 through 2021. The stock options have a term of 10 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 a four-year period (the Fiscal 2018 Employee Time Vesting Stock Option Grant). The stock options have a term of 10 years from the date of grant. In August 2017, we granted to members of the Board of Directors 6,052 stock options (the Fiscal 2018 Board of Directors Stock Option Grant). Stock 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 grant. The Fiscal 2018 Employee Performance Stock Option Grant, the 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. All stock options issued during fiscal 2018 and 2017 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 and 2017 are as follows:
|  | 2018 |  |  | 2017 |
Dividend Yield |  |  | 1.3 | % |  |  | 1.3 | %
Expected Volatility |  |  | 36.3 | % |  |  | 36.5 | %
Risk Free Interest Rate |  |  | 2.10 | % |  |  | 1.40 | %
Expected Life |  | 6.0 years |  |  | 6.0 years |
Stock option expense for all outstanding stock option awards was approximately $4.3 million, $5.3 million, and $7.5 million, for the years ended March 31, 2018, 2017, and 2016, respectively. At March 31, 2018, there was approximately $6.8 million of unrecognized compensation cost related to outstanding stock options which is expected to be recognized over a weighted-average period of 2.5 years. The following table shows stock option activity for the years presented:
|  | For the Years Ended March 31, |
|  | 2018 |  |  | 2017 |  |  | 2016 |
|  | Number of Shares |  |  | Weighted Average Exercise Price |  |  | Number of Shares |  |  | Weighted Average Exercise Price |  |  | Number of Shares |  |  | Weighted Average Exercise Price |
Outstanding Options at Beginning of Year |  |  | 1,323,379 |  |  | $ | 66.07 |  |  |  | 1,817,763 |  |  | $ | 53.03 |  |  |  | 1,665,565 |  |  | $ | 46.37 |
Granted |  |  | 119,986 |  |  | $ | 100.20 |  |  |  | 202,364 |  |  | $ | 77.76 |  |  |  | 318,572 |  |  | $ | 79.83 |
Exercised |  |  | (448,295 | ) |  | $ | 60.27 |  |  |  | (677,566 | ) |  | $ | 34.46 |  |  |  | (137,874 | ) |  | $ | 27.58 |
Cancelled |  |  | (36,934 | ) |  | $ | 79.97 |  |  |  | (19,182 | ) |  | $ | 70.30 |  |  |  | (28,500 | ) |  | $ | 86.35 |
Outstanding Options at End of Year |  |  | 958,136 |  |  | $ | 72.52 |  |  |  | 1,323,379 |  |  | $ | 66.07 |  |  |  | 1,817,763 |  |  | $ | 53.03 |
Options Exercisable at End of Year |  |  | 651,218 |  |  |  |  |  |  |  | 874,116 |  |  |  |  |  |  |  | 1,285,412 |  |  |  |  |
Weighted Average Fair Value of Options Granted during the Year |  |  |  |  |  | $ | 33.37 |  |  |  |  |  |  | $ | 25.22 |  |  |  |  |  |  | $ | 24.27 |
The following table summarizes information about stock options outstanding at March 31, 2018:
|  | Options Outstanding |  |  | Options Exercisable |
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 |  |  | 65,912 |  |  |  | 3.35 |  |  | $ | 23.27 |  |  |  | 65,912 |  |  | $ | 23.27 |
$33.43 - $37.34 |  |  | 99,582 |  |  |  | 4.21 |  |  | $ | 33.94 |  |  |  | 99,582 |  |  | $ | 33.94 |
$53.22 - $77.67 |  |  | 307,424 |  |  |  | 7.00 |  |  | $ | 71.12 |  |  |  | 183,248 |  |  | $ | 69.79 |
$79.73 - $106.00 |  |  | 485,218 |  |  |  | 7.37 |  |  | $ | 88.02 |  |  |  | 302,476 |  |  | $ | 84.72 |
|  |  | 958,136 |  |  |  | 6.65 |  |  | $ | 72.52 |  |  |  | 651,218 |  |  | $ | 66.53 |
At March 31, 2018, the aggregate intrinsic value for outstanding and exercisable options was approximately $29.3 million, and $23.8 million, respectively. The total intrinsic value of options exercised during the fiscal year ended March 31, 2018 was approximately $18.7 million. Restricted Stock In May 2017, the Compensation Committee approved the granting to certain officers and key employees an aggregate of 52,646 shares of performance vesting restricted stock 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 agreement), ranging from 11.0% to 18.0%, for the fiscal year ended 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. During fiscal 2018, the adjusted return on equity was approximately 17.2%; therefore approximately 50,656 shares were earned, with the remaining shares forfeited. 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). Both of 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. In August 2017, we granted to members of the Board of Directors 11,444 shares of restricted stock (the Board of Directors Fiscal 2018 Restricted Stock Award) which vested six months after the grant date. The Board of Director Fiscal 2018 Restricted Stock Awards were valued at the closing price of the stock on the date of the grant and were expensed over a six-month period. The fair value of restricted stock is estimated based on the stock price at the date of the grant. The following table summarizes the activity for nonvested restricted shares during the fiscal year ended March 31, 2018:
|  | Number of Shares |  |  | Weighted Average Grant Date Fair Value |
Restricted Stock Beginning of Year |  |  | 371,213 |  |  | $ | 60.33 |
Granted |  |  | 107,964 |  |  | $ | 100.05 |
Vested |  |  | (119,187 | ) |  | $ | 80.04 |
Forfeited |  |  | (31,931 | ) |  | $ | 40.00 |
Nonvested Restricted Stock at End of Year |  |  | 328,059 |  |  | $ | 65.76 |
During fiscal 2017 and 2016, the weighted average grant date fair value of restricted shares granted was $76.67 and $81.30, respectively. Expense related to restricted shares was $9.6 million, $6.8 million, and $9.8 million in fiscal years ended March 31, 2018, 2017, and 2016, respectively. At March 31, 2018, there were approximately 330,000 shares with remaining restrictions, for which $17.0 million of unearned compensation will be recognized over a weighted-average period of 2.3 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 4,176,195 at March 31, 2018. Of the available shares, a total of 1,386,296 can be used for future restricted stock and restricted stock unit grants.

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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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