Note

–

Stock-B

ased Compensation

Amounts recognized in the condensed consolidated financial statements related to stock-based compensation are as follows (in thousands, except per share data):

	Three Months E nded June 30 ,
	2017		2016
Total cost of stock-based compensation charged against income before income taxes	$	540	$	429
Amount of income tax benefit (expense) recognized in earnings		89		(47	)
Amount charged against net income	$	629	$	382
Impact on net income per common share:
Basic	$	0.17	$	0.10
Diluted		0.16		0.10

Stock-based compensation expense is included in cost of revenues, selling, and general and administrative expense in the accompanying condensed consolidated statements of income.

The fair value of each stock option grant is estimated on the date of grant using the Black-Scholes option-pricing model (“Black-Scholes”). We use historical data to estimate the expected price volatility, the expected stock option life and expected forfeiture rate. The risk-free interest rate is based on the United States Treasury yield curve in effect at the time of grant for the estimated life of the stock option. 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.

The following is a summary of stock option activity for the

three

months ended

June 30, 2017:

	Number of Shares			Weighted- A verage Exercise Price per Share		Weighted- A verage Remaining Contractual Term		Aggregate Intrinsic Value (000s)
Outstanding at March 31, 2017		510,361		$	75.78		5.0	$	23,956
Stock options granted		93,435			122.77		5.8
Stock options forfeited		(5,866	)		96.96		5.4
Stock options expired		--			--		--
Stock options exercised		(27,135	)		54.41		--
Outstanding at June 30, 2017		570,795			84.27		5.0	$	33,701

Exercisable at June 30, 2017		185,614			61.10		4.2	$	15,260

The total intrinsic value of stock options exercised was

$2,422,642

and

$2,242,938

for the

three

months ended

June 30, 2017

and

2016,

respectively.

A summary of the status of our unvested stock option shares as of

June 30, 2017

is as follows:

	Number of Shares			Weighted- A verage Grant-Date Fair Value
Unvested at March 31, 2017		373,766		$	22.49
Stock options granted		93,435			38.83
Stock options forfeited		(5,866	)		27.95
Stock options vested		(76,154	)		20.92
Unvested at June 30, 2017		385,181			28.14

As of

June 30, 2017,

there was

$9,120,867

of total unrecognized compensation expense related to unvested stock options. As of

June 30, 2017,

we have

715,803

shares available for future stock option grants.