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Note 9 - Stock-Based Compensation | 12 Months Ended
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Mar. 31, 2015
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] |
Disclosure of Compensation Related Costs, Share-based Payments [Text Block] | Note 9. Stock-Based C ompensation We adopted stock option plans for the benefit of our employees and outside directors. Under terms of the plans, stock options are granted at an amount not less than 100% of the quoted market price of the underlying shares at the date of grant. Stock options are exercisable for terms of five to ten years and vest ratably over terms of four to seven years. All of our stock option plans have been approved by our shareholders. On August 8, 2014 we adopted The Mesa Laboratories, Inc. 2014 Equity Plan (the “2014 Plan”), which was subsequently approved by our shareholders on October 2, 2014 at our 2014 Annual Meeting of Shareholders. The purpose of the 2014 Plan is to promote the success and enhance the value of the Company by linking the personal interests of our employees, officers and directors to those of our shareholders by providing such persons with an incentive for outstanding performance. A total of 1,100,000 shares of common stock were reserved for issuance under the 2014 Plan and are subject to terms as set by the Compensation Committee of the Board of Directors at the time of grant. As of March 31, 2015, we have 2,320 shares outstanding under the 2014 Plan. Under the December 8, 2006 plan (the “2006 Plan”), a total of 400,000 shares of common stock were reserved for issuance and were subject to terms as set by the Compensation Committee of the Board of Directors at the time of grant. On September 23, 2010, our shareholders approved an amendment to the 2006 Plan whereby the number of shares authorized for issuance was increased to 800,000. As a result of the approval of the 2014 Plan by our shareholders, no further awards will be made under the 2006 Plan and it will remain in effect only as long as awards previously made thereunder remain outstanding. As of March 31, 2015, we have 422,603 stock options outstanding under the 2006 Plan. On February 27, 2013, we filed a Registration Statement on Form S-8 whereby we registered the additional 400,000 shares of common stock underlying stock options issuable under the 2006 Plan. Under the October 21, 1999 plan (the “1999 Plan”), a total of 300,000 shares of common stock were reserved for issuance and were subject to terms as set by the Compensation Committee of the Board of Directors at the time of grant. On October 18, 2004, our shareholders approved an amendment to the 1999 Plan to reserve an additional 200,000 shares of common stock for issuance under the plan. The 1999 Plan has expired and no new grants can be made under this plan. As of March 31, 2015, we have 12,325 stock options outstanding under the 1999 Plan. Amounts recognized in the consolidated financial statements related to stock-based compensation are as follows (in thousands, except per share data):
|  | Year E nded March 31, |
|  | 2015 |  |  | 201 4 |  |  | 201 3 |
Total cost of stock based compensation charged against income before income tax |  | $ | 993 |  |  | $ | 840 |  |  | $ | 1,112 |
Amount of income tax benefit recognized in earnings |  |  | 373 |  |  |  | 263 |  |  |  | 388 |
Amount charged against net income |  | $ | 620 |  |  | $ | 577 |  |  | $ | 724 |
Impact on net income per common share: |  |  |  |  |  |  |  |  |  |  |  |
Basic |  | $ | 0.18 |  |  | $ | 0.17 |  |  | $ | 0.22 |
Diluted |  |  | 0.17 |  |  |  | 0.16 |  |  |  | 0.20 |
The fair value of each option award is estimated on the date of grant using the Black-Scholes option valuation model that uses assumptions noted in the following table. We use historical data to estimate volatility, expected option life and forfeiture rate. The risk-free rate is based on the United States Treasury yield curve in effect at the time of grant. The dividend yield is calculated based upon the dividend payments made during the prior four quarters as a percent of the average stock price for that period.
| Year E nded March 31,
| 2015 | 201 4 | 201 3
Volatility | 24.4% | - | 27.1% | 26% | - | 28.7% | 27.5 | - | 31.1%
Risk-free interest rate | 1.9% | - | 2.3% | 0.8% | - | 2.1% | 0.6 | - | 1.0%
Expected option life (years) | 6 | - | 8 | 5 | - | 10 | 5 | - | 10
Dividend yield |  | 0.9% |  |  | 1.1% |  |  | 1.4% |
A summary of the option activity as of and for the years ended March 31, 2015, 2014 and 2013 is as follows:
|  | Number of Shares |  |  | Weighted- average Exercise Price |  |  | Weighted- average Remaining Contractual Term |  |  | Aggregate Intrinsic Value (000s) |
Outstanding at March 31, 2012 |  |  | 433,785 |  |  | $ | 22.77 |  |  |  | 3.9 |  |  | $ | 11,516 |
Granted |  |  | 116,080 |  |  |  | 49.97 |  |  |  | 5.9 |  |  |  | -- |
Forfeited |  |  | (40,375 | ) |  |  | 32.87 |  |  |  | -- |  |  |  | -- |
Expired |  |  | (40 | ) |  |  | 18.98 |  |  |  | -- |  |  |  | -- |
Exercised |  |  | (93,325 | ) |  |  | 20.56 |  |  |  | -- |  |  |  | -- |
Outstanding at March 31, 2013 |  |  | 416,125 |  |  |  | 29.87 |  |  |  | 3.7 |  |  |  | 9,529 |
Granted |  |  | 128,124 |  |  |  | 55.33 |  |  |  | 6.4 |  |  |  | -- |
Forfeited |  |  | (27,782 | ) |  |  | 52.50 |  |  |  | -- |  |  |  | -- |
Expired |  |  | (410 | ) |  |  | 52.50 |  |  |  | -- |  |  |  | -- |
Exercised |  |  | (117,885 | ) |  |  | 22.17 |  |  |  | -- |  |  |  | -- |
Outstanding at March 31, 2014 |  |  | 398,172 |  |  |  | 38.75 |  |  |  | 4.4 |  |  |  | 20,505 |
Granted |  |  | 147,720 |  |  |  | 88.62 |  |  |  | 7.0 |  |  |  | -- |
Forfeited |  |  | (26,466 | ) |  |  | 64.62 |  |  |  | -- |  |  |  | -- |
Expired |  |  | -- |  |  |  | -- |  |  |  | -- |  |  |  | -- |
Exercised |  |  | (82,178 | ) |  |  | 28.87 |  |  |  | -- |  |  |  | -- |
Outstanding at March 31, 2015 |  |  | 437,248 |  |  |  | 55.81 |  |  |  | 4.9 |  |  |  | 9,445 |
Exercisable at March 31, |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
2015 |  |  | 163,210 |  |  |  | 33.35 |  |  |  | 3.6 |  |  |  | 6,341 |
2014 |  |  | 140,825 |  |  |  | 26.70 |  |  |  | 3.5 |  |  |  | 8,949 |
2013 |  |  | 158,320 |  |  |  | 21.00 |  |  |  | 3.0 |  |  |  | 5,031 |
A summary of the status of our unvested option shares as of and for the years ended March 31, 2015, 2014 and 2013 is as follows:
|  | Unvested Shares |  |  | Weighted-a verage Grant-date Fair Value |
Unvested at March 31, 2012 |  |  | 284,875 |  |  | $ | 7.28 |
Options granted |  |  | 116,065 |  |  |  | 12.43 |
Options forfeited |  |  | (38,720 | ) |  |  | 8.86 |
Options vested |  |  | (104,415 | ) |  |  | 6.69 |
Unvested at March 31, 2013 |  |  | 257,805 |  |  |  | 9.55 |
Options granted |  |  | 128,124 |  |  |  | 15.90 |
Options forfeited |  |  | (27,782 | ) |  |  | 14.75 |
Options vested |  |  | (100,800 | ) |  |  | 8.53 |
Unvested at March 31, 2014 |  |  | 257,347 |  |  |  | 11.86 |
Options granted |  |  | 147,720 |  |  |  | 24.49 |
Options forfeited |  |  | (26,466 | ) |  |  | 17.29 |
Options vested |  |  | (104,563 | ) |  |  | 10.36 |
Unvested at March 31, 2015 |  |  | 274,038 |  |  |  | 18.42 |
The total intrinsic value of options exercised was $3,546,000, $6,287,000 and $2,742,000 during the years ended March 31, 2015, 2014 and 2013, respectively. As of March 31, 2015, there was $5,645,903 of total unrecognized compensation expense related to unvested options. As of March 31, 2015, we have 1,097,680 shares available for future option grants. Effective November 30, 2012, as part of our Chief Financial Officer transition, 14,400 unvested options were modified to a) extend the expiration date to 10 years following the original grant date, b) allow them to be exercised through their expiration date, and c) accelerate the vesting such that all options will vest by November 30, 2014. This was a modification of the terms of an equity award and, accordingly, we treated this as an exchange of the original award for a new award. We recorded incremental compensation expense of approximately $240,000 for the year ended March 31, 2013, which is included in general and administrative expense on the accompanying consolidated statements of income.

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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 10 -Section 50 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=6415400&loc=d3e5070-113901 Reference 2: 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 3: 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=51659978&loc=d3e25284-112666 Reference 4: 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=6418621&loc=d3e17540-113929 Reference 5: 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 Reference 6: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Staff Accounting Bulletin (SAB) -Number Topic 14 + Details
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