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 September 3 0 ,				Six Months E nded September 3 0 ,
	201 7		201 6		201 7		201 6
Total cost of stock-based compensation charged against income before income taxes	$	445	$	412	$	985	$	841
Amount of income tax benefit recognized in earnings		108		110		120		171
Amount charged against net income	$	337	$	302	$	865	$	670
Impact on net income per common share:
Basic	$	0.09	$	0.08	$	0.23	$	0.18
Diluted		0.09		0.08	$	0.22		0.18

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

six

months ended

September 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 o ptions granted		95,605			123.09		5.5
Stock o ptions forfeited		(40,661	)		93.74		5.1
Stock o ptions expired		(96	)		97.78		4.5
Stock o ptions exercised		(50,503	)		61.09		--
Outstanding at September 30, 2017		514,706			84.58		4.8	$	33,320

Exercisable at September 30, 2017		162,831			60.05		4.0	$	14,536

The total intrinsic value of

stock options exercised was

$4,181,318

and

$3,218,000

for the

six

months ended

September 30, 2017

and

2016,

respectively.

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

September 30, 2017,

is as follows:

	Number of Shares			Weighted- A verage Grant-Date Fair Value
Unvested at March 31, 201 6		373,766		$	22.49
Stock o ptions granted		95,605			39.00
Stock o ptions forfeited		(40,661	)		26.84
Stock o ptions vested		(76,835	)		20.93
Unvested at September 30, 2017		351,875			28.41

As of

September 30, 2017,

there was

$7,860,927

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

September 30, 2017,

we have

740,379

shares available for future stock option grants.