Note

Stock-B

ased Compensation

Amounts recognized in the Condensed Consolidated Financial Statements related to stock-based compensation are as follows:

	Three Months Ended June 30,
	2019			2018
Stock-based compensation expense	$	868		$	739
Amount of income tax (benefit) recognized in earnings		(540	)		(896	)
Stock-based compensation expense (benefit), net of tax	$	328		$	(157	)

Stock-based compensation expense is included in cost of revenues, selling, general and administrative, and research and development expense in the accompanying Condensed Consolidated Statements of Income.

The following is a summary of stock option and restricted stock unit ("RSU") award activity for the

three

months ended

June 30, 2019

(shares in thousands):

	Stock Options					Restricted Stock Units
	Shares Subject to Options			Weighted- Average Exercise Price per Share		Number of Shares			Weighted- Average Grant Date Fair Value per Share
Outstanding at March 31, 2019		354		$	94.04		31		$	162.23
Awards granted		29			205.46		19			201.88
Awards forfeited or expired		(19	)		98.04		(1	)		149.14
Awards exercised or distributed		(31	)		87.54		(2	)		142.72
Outstanding as of June 30, 2019		333		$	103.94		47		$	179.33

Eight of the RSUs granted during the quarter ended

June 30, 2019

were subject to performance and service conditions and are considered performance share units ("PSUs"). During the

three

months ended

June 30, 2019

, we awarded PSUs that are subject to both service and performance conditions to eligible employees. The PSUs had a grant date fair value of

$202.00

per share and vest based on our achievement of specific performance criteria for the

three

-year period from

April 1, 2019

through

March 31, 2022

and on continued service through

June 15, 2022.

The quantity of shares that will be issued upon vesting will range from

200%

of the targeted number of shares; if the defined minimum targets are

not

met, then

shares will vest.