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Share-Based Compensation | 9 Months Ended
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Dec. 31, 2016
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] |
Share-Based Compensation | Share-Based Compensation In connection with our initial public offering, the Board of Directors adopted the 2005 Long-Term Equity Incentive Plan (the “Plan”), which provides for grants of up to a maximum of 5.0 million shares of restricted stock, stock options, restricted stock units and other equity-based awards. In June 2014, the Board of Directors approved, and in July 2014, the stockholders ratified, an increase of an additional 1.8 million shares of our common stock for issuance under the Plan, increased the maximum number of shares subject to stock options that may be awarded to any one participant under the Plan during any fiscal 12-month period from 1.0 million to 2.5 million shares, and extended the term of the Plan by ten years to February 2025. Directors, officers and other employees of the Company and its subsidiaries, as well as others performing services for the Company, are eligible for grants under the Plan. During the three and nine months ended December 31, 2016, pre-tax share-based compensation costs charged against income were $2.4 million and $6.3 million, respectively, and the related income tax benefit recorded was $1.3 million and $2.5 million, respectively. During the three and nine months ended December 31, 2015, pre-tax share-based compensation costs charged against income were $2.1 million and $7.1 million, respectively, and the related income tax benefit recorded was $0.7 million and $2.5 million, respectively. At December 31, 2016, there were $10.5 million of unrecognized compensation costs related to nonvested share-based compensation arrangements under the Plan, based on management's estimate of the shares that will ultimately vest. We expect to recognize such costs over a weighted-average period of 0.9 year. The total fair value of options and restricted stock units vested during the nine months ended December 31, 2016 and 2015 was $6.0 million and $6.6 million, respectively. For the nine months ended December 31, 2016 and 2015, we issued 94,718 and 153,603 shares of restricted stock units, respectively, and received cash from the exercise of stock options of $3.4 million and $6.6 million, respectively. Accordingly, we realized $1.8 million and $3.5 million, respectively, in tax benefits from the tax deductions resulting from these restricted stock issuances and stock option exercises. At December 31, 2016, there were 2.4 million shares available for issuance under the Plan. On May 9, 2016, the Compensation Committee of our Board of Directors granted 49,064 shares of restricted stock units and stock options to acquire 224,843 shares of our common stock to certain executive officers and employees under the Plan. All of the shares of restricted stock units vest in their entirety on the three-year anniversary of the date of grant. Upon vesting, the units will be settled in shares of our common stock. The stock options will vest 33.3% per year over three years and are exercisable for up to ten years from the date of grant. These stock options were granted at an exercise price of $57.18 per share, which is equal to the closing price for our common stock on the date of the grant. Termination of employment prior to vesting will result in forfeiture of the unvested restricted common stock units and the unvested stock options. Vested stock options will remain exercisable by the employee after termination, subject to the terms of the Plan. On September 12, 2016, we announced that Christine Sacco had been appointed as Chief Financial Officer of the Company, effective that same day. In connection with Ms. Sacco's appointment as Chief Financial Officer on September 12, 2016, the Company executed an offer letter with Ms. Sacco, which sets forth the terms of her compensation as approved by the Compensation Committee of the Board of Directors. In accordance with the terms of her offer letter, the Company granted Ms. Sacco 5,012 shares of restricted stock units and stock options to acquire 25,746 shares of our common stock under the Plan. The restricted stock units vest in their entirety on the three-year anniversary of the date of grant. Upon vesting, the units will be settled in shares of our common stock. The stock options will vest 33.3% per year over three years and are exercisable for up to ten years from the date of grant. These stock options were granted at an exercise price of $47.39 per share, which is equal to the closing price of our common stock on the date of grant. On November 14, 2016, we announced that William C. P'Pool had been appointed as Senior Vice President, General Counsel and Corporate Secretary, effective that same day. In connection with Mr. P'Pool's appointment as Senior Vice President, General Counsel and Corporate Secretary on November 14, 2016, the Company executed an offer letter with Mr. P'Pool, which sets forth the terms of his compensation as approved by the Compensation Committee of the Board of Directors. In accordance with the terms of his offer letter, the Company granted Mr. P'Pool 2,664 shares of restricted stock units and stock options to acquire 13,683 shares of our common stock under the Plan. The restricted stock units vest in their entirety on the three-year anniversary of the date of grant. Upon vesting, the units will be settled in shares of our common stock. The stock options will vest 33.3% per year over three years and are exercisable for up to ten years from the date of grant. These stock options were granted at an exercise price of $50.06 per share, which is equal to the closing price of our common stock on the date of grant. Restricted Shares Restricted shares granted to employees under the Plan generally vest in three to five years, primarily upon the attainment of certain time vesting thresholds, and may also be contingent on the attainment of certain performance goals of the Company, including revenue and earnings before income taxes, depreciation and amortization targets. The restricted stock unit awards provide for accelerated vesting if there is a change of control, as defined in the Plan. The restricted stock units granted to employees generally vest in their entirety on the three-year anniversary of the date of the grant. Upon vesting, the units will be settled in shares of our common stock. Termination of employment prior to vesting will result in forfeiture of the restricted stock units, unless otherwise accelerated by the Compensation Committee. The restricted stock units granted to directors vest in their entirety one year after the date of grant so long as membership on the Board of Directors continues through the vesting date, and will be settled by delivery to the director of one share of common stock of the Company for each vested restricted stock unit promptly following the earliest of the director's (i) death, (ii) disability or (iii) the six-month anniversary of the date on which the director's Board membership ceases for reasons other than death or disability. At our annual meeting date on August 2, 2016, each of our six independent members of the Board of Directors received a grant of 1,896 restricted stock units under the Plan. Additionally, on May 26, 2016, the Compensation Committee granted 346 restricted stock units to a newly appointed Board member. The fair value of the restricted stock units is determined using the closing price of our common stock on the date of the grant. The weighted-average grant-date fair value of restricted stock units granted during the nine months ended December 31, 2016 and 2015 was $55.44 and $42.41, respectively. A summary of the Company's restricted stock units granted under the Plan is presented below:
Restricted Stock Units |  | Shares (in thousands) |  | Weighted- Average Grant-Date Fair Value
Nine months ended December 31, 2015 |  |  |  |
Vested and nonvested at March 31, 2015 |  | 362.3 |  |  | $ | 22.74 |
Granted |  | 266.1 |  |  | 42.41 |
Vested and issued |  | (153.6 | ) |  | 18.16 |
Forfeited |  | (1.4 | ) |  | 33.50 |
Vested and nonvested at December 31, 2015 |  | 473.4 |  |  | 35.25 |
Vested at December 31, 2015 |  | 69.8 |  |  | 14.76 |
Nine months ended December 31, 2016 |  |  |  |
Vested and nonvested at March 31, 2016 |  | 467.8 |  |  | $ | 35.22 |
Granted |  | 68.4 |  |  | 55.44 |
Vested and issued |  | (94.7 | ) |  | 28.51 |
Forfeited |  | (91.4 | ) |  | 41.71 |
Vested and nonvested at December 31, 2016 |  | 350.1 |  |  | 39.29 |
Vested at December 31, 2016 |  | 63.4 |  |  | 20.12 |
Options The Plan provides that the exercise price of options granted shall be no less than the fair market value of the Company's common stock on the date the options are granted. Options granted have a term of no greater than ten years from the date of grant and vest in accordance with a schedule determined at the time the option is granted, generally three to five years. The option awards provide for accelerated vesting in the event of a change in control, as defined in the Plan. Termination of employment prior to vesting will result in forfeiture of the unvested stock options. Vested stock options will remain exercisable by the employee after termination of employment, subject to the terms in the Plan. The fair value of each option award is estimated on the date of grant using the Black-Scholes Option Pricing Model that uses the assumptions noted in the table below. Expected volatilities are based on the historical volatility of our common stock and other factors, including the historical volatilities of comparable companies. We use appropriate historical data, as well as current data, to estimate option exercise and employee termination behaviors. Employees that are expected to exhibit similar exercise or termination behaviors are grouped together for the purposes of valuation. The expected terms of the options granted are derived from our historical experience, management's estimates, and consideration of information derived from the public filings of companies similar to us, and represent the period of time that options granted are expected to be outstanding. The risk-free rate represents the yield on U.S. Treasury bonds with a maturity equal to the expected term of the granted options. The weighted-average grant-date fair values of the options granted during the nine months ended December 31, 2016 and 2015 were $21.75 and $17.24, respectively.
|  | Nine months ended December 31,
|  | 2016 |  | 2015
Expected volatility |  | 37.8 | % |  | 40.2 | %
Expected dividends |  | $ | — |  |  | $ | — |
Expected term in years |  | 6.0 |  |  | 6.0 |
Risk-free rate |  | 1.7 | % |  | 1.7 | %
A summary of option activity under the Plan is as follows:
Options |  | Shares (in thousands) |  | Weighted- Average Exercise Price |  | Weighted- Average Remaining Contractual Term (years) |  | Aggregate Intrinsic Value (in thousands)
Nine months ended December 31, 2015 |  |  |  |  |  |  |  |
Outstanding at March 31, 2015 |  | 871.2 |  |  | $ | 23.40 |  |  |  |  |
Granted |  | 208.2 |  |  | 42.13 |  |  |  |  |
Exercised |  | (336.9 | ) |  | 18.99 |  |  |  |  |
Forfeited or expired |  | (2.1 | ) |  | 38.21 |  |  |  |  |
Outstanding at December 31, 2015 |  | 740.4 |  |  | 30.63 |  |  | 7.9 |  | $ | 15,325 |
Exercisable at December 31, 2015 |  | 313.5 |  |  | 21.68 |  |  | 6.7 |  | $ | 9,341 |
Nine months ended December 31, 2016 |  |  |  |  |  |  |  |  |  |  |
Outstanding at March 31, 2016 |  | 727.7 |  |  | $ | 30.70 |  |  |  |  |
Granted |  | 264.3 |  |  | 55.86 |  |  |  |  |
Exercised |  | (107.9 | ) |  | 31.91 |  |  |  |  |
Forfeited or expired |  | (92.2 | ) |  | 42.62 |  |  |  |  |
Outstanding at December 31, 2016 |  | 791.9 |  |  | 37.54 |  |  | 7.4 |  | $ | 12,543 |
Exercisable at December 31, 2016 |  | 387.0 |  |  | 25.70 |  |  | 6.3 |  | $ | 10,217 |
The aggregate intrinsic value of options exercised in the nine months ended December 31, 2016 was $2.4 million.

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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 -SubTopic 40 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=65895303&loc=d3e17540-113929 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 505 -SubTopic 50 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=68057994&loc=d3e25284-112666 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 718 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SAB Topic 14) -URI http://asc.fasb.org/extlink&oid=27013229&loc=d3e301413-122809 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 718 -SubTopic 10 -Section 50 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=6415400&loc=d3e5070-113901 Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 718 -SubTopic 10 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=6415400&loc=d3e5047-113901 Reference 6: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 718 -SubTopic 10 -Section 50 -Paragraph 4 -URI http://asc.fasb.org/extlink&oid=6415400&loc=d3e5444-113901 + Details
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