Stock Options and Stock-Based Compensation (Tables)

12 Months Ended

Mar. 31, 2018

The following weighted average assumptions were used for the fiscal years ended March 31, 2018, 2017 and 2016:

	Fiscal 2018			Fiscal 2017			Fiscal 2016
Expected volatility		40	%		41	%		43	%
Risk free interest rate	1.88% to 2.56%			1.03% to 1.92%			1.25% to 1.65%
Dividend yield		0.0	%		0.0	%		0.0	%
Weighted average option life	4.4 to 4.5 years			4.4 to 4.5 years			4.4 to 4.5 years

The table below shows the amounts recognized in the financial statements for the fiscal years ended March 31, 2018, 2017 and 2016.

	Fiscal 2018		Fiscal 2017		Fiscal 2016
Cost of revenue	$	1,749,000	$	1,507,000	$	1,288,000
General and administrative		1,415,000		925,000		904,000
Total cost of stock-based compensation included in income before income taxes		3,164,000		2,432,000		2,192,000
Amount of income tax benefit recognized		1,105,000		946,000		852,000
Amount charged to net income	$	2,059,000	$	1,486,000	$	1,340,000
Effect on basic earnings per share	$	0.11	$	0.08	$	0.07
Effect on diluted earnings per share	$	0.11	$	0.08	$	0.07

The following table summarizes information for all stock options for the fiscal years ended March 31, 2018, 2017 and 2016:

	Fiscal 2018			Fiscal 2017			Fiscal 2016
Options outstanding – beginning of the year		1,143,928			1,115,465			1,163,179
Options granted		334,200			267,950			276,275
Options exercised		(314,846	)		(115,592	)		(200,753	)
Options cancelled/forfeited		(98,843	)		(123,895	)		(123,236	)
Options outstanding – end of year		1,064,439			1,143,928			1,115,465
During the year, weighted average exercise price of:
Options granted	$	52.57		$	37.13		$	35.51
Options exercised	$	27.59		$	22.74		$	19.75
Options cancelled/forfeited	$	35.59		$	36.90		$	33.44
At the end of the year:
Price range of outstanding options	$12.71-$57.75			$12.71-$45.73			$9.05-$45.55
Weighted average exercise price per share	$	39.45		$	32.02		$	30.36
Options available for future grants		260,961			505,493			650,345
Exercisable options		445,387			585,424			529,691

The following table summarizes the status of stock options outstanding and exercisable at March 31, 2018:

Range of Exercise Prices	Number of Outstanding Options		Weighted Average Remaining Contractual Life		Outstanding Options – Weighted Average Exercise Price		Exercisable Options – Number of Exercisable Options		Exercisable Options – Weighted Average Exercise Price
$12.71 to $32.10		292,156		2.84	$	24.96		195,387	$	21.42
$32.11 to $34.78		177,354		2.91		34.41		85,900		34.37
$34.79 to $44.86		186,408		3.19		41.20		106,502		41.22
$44.87 to $57.75		408,521		4.38		52.58		57,598		45.60
Total		1,064,439		3.40	$	39.45		445,387	$	31.78

The following table summarizes the status of all outstanding options at March 31, 2018, and changes during the fiscal year then ended:

	Number of Options			Weighted Average Exercise Price per Share		Weighted Average Remaining Contractual Life (Years)		Aggregate Intrinsic Value as of March 31, 2018
Options outstanding, March 31, 2017		1,143,928		$	32.02
Granted		334,200			52.57
Exercised		(314,846	)		27.59
Cancelled – forfeited		(81,586	)		36.22
Cancelled – expired		(17,257	)		27.57
Options outstanding, March 31, 2018		1,064,439		$	39.45		3.41	$	12,986,338
Options vested and expected to vest		959,664		$	39.76		3.43	$	10,249,240
Ending exercisable		445,387		$	31.78		2.45	$	8,360,918