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Note 6 - Stock-based Compensation
 3 Months Ended
Jun. 30, 2018
Notes to Financial Statements  
Disclosure of Compensation Related Costs, Share-based Payments [Text Block]
Note
6
.
Stock-B
ased Compensation
 
During the
three
months ended
June 30, 2018,
we granted restricted stock units (“RSUs”) on
15,890
shares of our common stock to eligible employees. The weighted average grant date fair value of the RSUs was
$151.44
per share. The RSUs generally vest in equal installments on the anniversary of the grant date over a period of
five
years.
 
During the
three
months ended
June 30, 2018,
we awarded
11,385
performance share units (“PSUs”) that are subject to both service and performance conditions to eligible employees. The PSUs had a grant date fair value of
$192.99
per share and vest both based on our achievement of specific performance criteria for the
three
-year period from
April 1, 2018
through
March 31, 2021,
as well as continued service through
June 15, 2021.
The quantity of shares that will be issued upon vesting will range from
0
percent to
400
percent of the targeted number of shares; if the defined minimum targets are
not
met, then
no
shares will vest.
 
During the
three
months ended
June 30, 2018,
we granted non-qualified stock options (“NQSOs”) on
24,940
shares of common stock to eligible employees. The weighted-average grant date fair value of the NQSOs was
$53.56
per share with a weighted average exercise price of
$143.36
per share based on the closing price of the common stock on the date of grant. The NQSOs generally vest in equal installments on the anniversary of the grant date over a period of
five
years.
 
Amounts recognized in the condensed consolidated financial statements related to stock-based compensation are as follows:
 
   
Three Months Ended
June 30,
  
   
2018
    
2017
  
Stock-based compensation expense
   $
739
     $
540
  
Amount of income tax (benefit) recognized in earnings
    
(896
 )    
(631
 )
Stock-based compensation (benefit), net of tax
   $
(157
 )   $
(91
 )
Benefit to earnings per share:
                
Basic
   $
0.04
     $
0.02
  
Diluted
    
0.04
      
0.02
  
 
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 following is a summary of stock option and non-vested stock award activity for the
three
months ended
June 30, 2018 (
shares in thousands):
 
   
Stock Options
   
Non-
Vested
Stock Awards
  
   
Number of
Shares
    
Weighted-Average
Exercise Price
per Share
    
Number of
Shares
    
Weighted-
A
verage
Grant-date
Fair Value
  
Outstanding as of March 31, 2018
    
458
     $
86.38
      
9
     $
125.68
  
Awards granted
    
25
      
143.36
      
27
      
168.79
  
Awards forfeited or expired
    
(22
 )    
94.45
      
--
      
 
  
Awards exercised / vested
    
(48
 )    
69.21
      
(1
 )    
122.98
  
Outstanding as of June 30, 2018
    
413
      
91.40
      
35
     $
159.29
  
                                 
Exercisable / vested as of June 30, 2018
    
160
      
 
      
1
      
 
  
 
We issue shares in connection with stock-based compensation pursuant to the Mesa Laboratories, Inc.
2014
Equity Plan (the
“2014
Equity Plan”). For the purposes of counting the shares remaining as available under the
2014
Incentive Plan, each share issuable pursuant to outstanding full value awards, such as RSUs and PSUs, counts as
five
shares issued, whereas each share underlying a stock option counts as
one
share issued. Under the
2014
Equity Plan,
1,100,000
shares of common stock have been authorized and reserved for eligible participants, of which
591,969
shares were available for future grants as of
June 30, 2018.