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Stock-Based Compensation | 12 Months Ended
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Mar. 31, 2019
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] |
Stock-Based Compensation | Stock-Based Compensation As of March 31, 2019, the Company maintains the 2017 Equity Incentive Plan (“2017 EIP”). The 2017 EIP reserved 4,173,554 shares of common stock for the grant of various classes of nonqualified stock options, restricted stock units, market and performance condition-based share units and other forms of equity-based compensation. Shares subject to any awards that expire without being exercised or that are forfeited or settled in cash shall again be available for future grants of awards under the 2017 EIP. Shares subject to stock option or stock appreciation right awards, that have been retained by the Company in payment or satisfaction of the exercise price and any applicable tax withholding obligation of such awards, shall not be available for future grant under the 2017 EIP. As of March 31, 2019, 3,750,392 shares are available for future grants. The Company’s management equity incentive plans are intended to provide an incentive to employees and non-employee directors of the Company to remain in the service of the Company and to increase their interest in the success of the Company in order to promote the long-term interests of the Company. The plans seek to promote the highest level of performance by providing an economic interest in the long-term performance of the Company. The Company settles employee share-based compensation awards with newly issued shares. Stock Options During fiscal 2019, the Company granted to management and other key employees 192,700 non-qualified options that vest ratably over 3 years from the date of grant. Options expire 10 years from the date of grant. The Company recognized stock-based compensation expense relating to stock options of $3,251, with a related tax benefit of $634 for fiscal 2019, stock-based compensation expense of $2,741 with a related tax benefit of $700 for fiscal 2018 and stock-based compensation of $1,705 with a related tax benefit of $457 for fiscal 2017. For purposes of determining the fair value of stock options granted, the Company used a Black-Scholes Model with the following assumptions:
|  | 2019 |  | 2018 |  | 2017
Risk-free interest rate |  | 2.77 | % |  | 2.08 | % |  | 1.41 | %
Dividend yield |  | 0.93 | % |  | 0.84 | % |  | 1.22 | %
Expected life (years) |  | 6 |  |  | 6 |  |  | 6 |
Volatility |  | 26.8 | % |  | 29.2 | % |  | 30.4 | %
The following table summarizes the Company’s stock option activity in the years indicated:
|  | Number of Options |  | Weighted- Average Remaining Contract Term (Years) |  | Weighted- Average Exercise Price |  | Aggregate Intrinsic Value
Options outstanding as of March 31, 2016 |  | 210,297 |  |  | 8.5 |  | $ | 67.54 |  |  | $ | 218 |
Granted |  | 242,068 |  |  |  |  | 57.60 |  |  | — |
Exercised |  | (263 | ) |  |  |  | 18.25 |  |  | 12 |
Expired |  | (434 | ) |  |  |  | 18.25 |  |  | 15 |
Options outstanding as of March 31, 2017 |  | 451,668 |  |  | 8.4 |  | $ | 62.29 |  |  | $ | 7,520 |
Granted |  | 169,703 |  |  |  |  | 83.14 |  |  | — |
Exercised |  | (62,197 | ) |  |  |  | 63.44 |  |  | 1,132 |
Forfeited |  | (11,495 | ) |  |  |  | 70.22 |  |  | 75 |
Expired |  | (2,089 | ) |  |  |  | 18.25 |  |  | 137 |
Options outstanding as of March 31, 2018 |  | 545,590 |  |  | 8.4 |  | $ | 68.65 |  |  | $ | 2,679 |
Granted |  | 192,700 |  |  |  |  | 75.17 |  |  | — |
Exercised |  | (171,630 | ) |  |  |  | 63.66 |  |  | 2,707 |
Forfeited |  | (11,754 | ) |  |  |  | 75.17 |  |  | — |
Options outstanding as of March 31, 2019 |  | 554,906 |  |  | 8.0 |  | $ | 72.31 |  |  | $ | 1,040 |
Options exercisable as of March 31, 2019 |  | 186,823 |  |  | 6.9 |  | $ | 69.34 |  |  | $ | 452 |
Options vested and expected to vest, as of March 31, 2019 |  | 545,299 |  |  | 8.0 |  | $ | 72.24 |  |  | $ | 1,038 |
The following table summarizes information regarding stock options outstanding as of March 31, 2019:
Range of Exercise Prices |  | Number of Options |  | Weighted- Average Remaining Contractual Life (Years) |  | Weighted- Average Exercise Price
$55.00-$60.00 |  | 137,599 |  |  | 7.1 |  | $ | 57.60 |
$65.01-$70.00 |  | 73,368 |  |  | 5.8 |  | $ | 68.82 |
$75.01-$83.14 |  | 343,939 |  |  | 8.8 |  | $ | 78.95 |
|  | 554,906 |  |  | 8.0 |  | $ | 72.31 |
Restricted Stock Units, Market and Performance-condition based Awards Non-employee directors In fiscal 2019, the Company granted to non-employee directors 35,065 deferred restricted stock units at the fair value of $46.30 per restricted stock unit at the date of grant. In fiscal 2018, such grants amounted to 33,408 restricted stock units at the fair value of $46.24 per restricted stock unit at the date of grant and in fiscal 2017, such grants amounted to 25,708 restricted stock units at the fair value of $69.97 per restricted stock unit at the date of grant. The awards vest immediately upon the date of grant and are settled in shares of common stock six months after termination of service as a director. In fiscal 2019, the Company also granted to non-employee directors, 1,441 restricted stock units and in fiscal 2018 and 2017, granted 1,345 and 1,239 restricted stock units, respectively, at fair values of $75.32, $73.39 and $65.88, for fiscal 2018, 2017 and 2016, respectively, under the deferred compensation plan. Employees In fiscal 2019, the Company granted to management and other key employees 204,599 restricted stock units that vest ratably over four years from the date of grant, at the fair value of $75.17 per restricted stock unit, 45,883 performance condition-based share units (“PSU”) at the fair value of $68.48 and 36,646 market condition-based share units (“TSR”) at the fair value of $86.23 per unit at the date of grant. The PSUs and TSRs cliff vest three years from the date of grant. In fiscal 2018, the Company granted to management and other key employees 161,229 restricted stock units that vest ratably over four years from the date of grant at the fair value of $83.14 per restricted stock unit and 60,187 TSRs at a weighted average fair value of $105.74 per unit at the date of grant that cliff vest three years from the date of grant. In fiscal 2017, the Company granted to management and other key employees 237,358 restricted stock units that vest ratably over four years from the date of grant at a fair value of $57.60 per restricted stock unit and 83,720 TSRs at a weighted average fair value of $70.79 per unit at the date of grant that cliff vest three years from the date of grant. For purposes of determining the fair value of the PSUs granted in fiscal 2019, the Company used the market price at the date of grant to which a discount for illiquidity was applied to reflect post vesting restrictions. For purposes of determining the fair value of TSRs granted in fiscal 2019, fiscal 2018, and fiscal 2017, the Company used a Monte Carlo Simulation with the following assumptions:
|  | 2019 |  | 2018 |  | 2017
Risk-free interest rate |  | 2.66 | % |  | 1.57 | % |  | 0.94 | %
Dividend yield |  | — | % |  | — | % |  | — | %
Expected life (years) |  | 3 |  |  | 3 |  |  | 3 |
Volatility |  | 26.41 | % |  | 27.49 | % |  | 31.74 | %
A summary of the changes in restricted stock units, TSRs and PSUs awarded to employees and directors that were outstanding under the Company’s equity compensation plans during fiscal 2019 is presented below:
|  | Restricted Stock Units (RSU) |  | Market condition-based Share Units (TSR) |  | Performance condition-based Share Units (PSU)
|  | Number of RSU |  | Weighted- Average Grant Date Fair Value |  | Number of TSR |  | Weighted- Average Grant Date Fair Value |  | Number of PSU |  | Weighted- Average Grant Date
Non-vested awards as of March 31, 2018 |  | 633,751 |  |  | $ | 56.60 |  |  | 349,941 |  |  | $ | 70.22 |  |  | — |  |  | $ | — |
Granted |  | 241,105 |  |  | 69.43 |  |  | 36,646 |  |  | 85.84 |  |  | 45,883 |  |  | 68.48 |
Stock dividend |  | 6,087 |  |  | 56.81 |  |  | 3,131 |  |  | 72.60 |  |  | 320 |  |  | 68.48 |
Performance factor |  | — |  |  | — |  |  | 143 |  |  | 75.48 |  |  | — |  |  | — |
Vested |  | (148,487 | ) |  | 68.55 |  |  | (3,482 | ) |  | 59.94 |  |  | — |  |  | — |
Canceled |  | (10,809 | ) |  | 72.56 |  |  | (33,795 | ) |  | 62.21 |  |  | (3,677 | ) |  | 68.48 |
Non-vested awards as of March 31, 2019 |  | 721,647 |  |  | $ | 57.72 |  |  | 352,584 |  |  | $ | 72.83 |  |  | 42,526 |  |  | $ | 68.48 |
The Company recognized stock-based compensation expense relating to restricted stock units, TSRs and PSUs of $19,357, with a related tax benefit of $3,085 for fiscal 2019, $16,712, with a related tax benefit of $3,325 for fiscal 2018 and $17,480, with a related tax benefit of $4,210 for fiscal 2017. All Award Plans As of March 31, 2019, unrecognized compensation expense associated with the non-vested equity awards outstanding was $37,187 and is expected to be recognized over a weighted-average period of 20 months.

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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://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 718 -URI http://asc.fasb.org/topic&trid=2228938 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 505 -SubTopic 50 -URI http://asc.fasb.org/subtopic&trid=2208855 + Details
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