19. Share-based Payments

At March 31, 2018, there were 342,000 shares of the Company’s common stock reserved for grants to the Company’s non-employee directors under the 2014 Non-Employee Director Incentive Award Plan (the “2014 Plan”). Under the 2014 Plan, (i) 35,659 and 37,383 of restricted stock units were issued and (ii) 236,976 and 263,078 shares of common stock were available for grant under this plan at March 31, 2018 and 2017, respectively.

At March 31, 2018, there were 3,950,000 shares of common stock reserved for grant to all employees of the Company under the 2010 Incentive Award Plan (the “2010 Plan”). Under the 2010 Plan, (i) 98,169 and 88,894 shares of restricted stock units were outstanding, (ii) options to purchase 1,046,298 and 898,009 shares of common stock were outstanding, and (iii) 1,573,810 and 688,765 shares of common stock were available for grant at March 31, 2018 and 2017, respectively.

In addition, at March 31, 2018 and 2017, options to purchase 97,000 and 128,000 shares of common stock, respectively, were outstanding under the 2004 Non-Employee Director Stock Option Plan. There were no options outstanding to purchase common stock under the 2003 Long-Term Incentive Plan at March 31, 2018 and options to purchase 10,350 shares of common stock were outstanding under this plan at March 31, 2017. No options remain available for grant under these plans.

The shares of common stock issued upon exercise of a previously granted stock option are considered new issuances from shares reserved for issuance upon adoption of the various plans. The Company requires that the option holders provide a written notice of exercise to the stock plan administrator and payment for the shares prior to issuance of the shares.

Stock Options

The following is a summary of stock option activity during the year:

	Number of Shares			Weighted Average Exercise Price
Outstanding at March 31, 2016		1,036,359		$	14.92
Granted		170,890		$	27.27
Exercised		(55,351	)	$	8.65
Forfeited		(8,600	)	$	28.92
Outstanding at March 31, 2017		1,143,298		$	16.97

At March 31, 2018, options to purchase 325,274 shares of common stock were unvested at the weighted average exercise price of $28.23.

Based on the market value of the Company’s common stock at March 31, 2018, 2017, and 2016, the pre-tax intrinsic value of options exercised was $913,000, $2,477,000, and $14,002,000, respectively. The total fair value of stock options vested during the years ended March 31, 2018, 2017, and 2016 was $1,572,000, $1,290,000, and $905,000, respectively.

The following summarizes information about the options outstanding at March 31, 2018:

	Options Outstanding								Options Exercisable
Range of Exercise price	Shares		Weighted Average Exercise Price		Weighted Average Remaining Life In Years			Aggregate Intrinsic Value	Shares		Weighted Average Exercise Price			Aggregate Intrinsic Value
$4.17 to $6.25		49,000	$	4.87		1.35				49,000	$	4.87
$6.26 to $7.43		354,534		6.48		4.70				354,534		6.48
$7.44 to $19.94		211,132		9.86		5.23				211,132		9.86
$19.95 to $34.17		528,632		27.96		8.12				203,358		27.54
		1,143,298	$	16.97		6.24	$	8,555,000		818,024	$	12.49	$	8,555,000

The aggregate intrinsic values in the above table represent the pre-tax value of all in-the-money options if all such options had been exercised on March 31, 2018 based on the Company’s closing stock price of $21.43 as of that date.

At March 31, 2018, there was $2,795,000 of total unrecognized compensation expense from stock-based compensation granted under the plans, which is related to non-vested shares. The compensation expense is expected to be recognized over a weighted average vesting period of 1.7 years.

Restricted Stock Units (“RSUs”)

During the years ended March 31, 2018 and 2017, the Company granted 77,854 and 62,637 shares of RSUs, respectively, with an estimated grant date fair value of $2,157,000 and $1,774,000, respectively, which was based on the closing market price on the date of grant. The fair value related to these awards is recognized as compensation expense over the vesting period. These awards generally vest in three equal installments beginning each anniversary from the grant date, subject to continued employment. Upon vesting, these awards may be net share settled to cover the required withholding tax with the remaining amount converted into an equivalent number of shares of common stock. Total shares withheld during the years ended March 31, 2018 and 2017 were 21,361 and 36,586, respectively, and was based on the value of these awards as determined by the Company’s closing stock price on the vesting date.

The following is a summary of changes in the status of non-vested RSUs during the year:

	Number of Shares			Weighted Average Grant Date Fair Value
Non-vested at March 31, 2017		126,277		$	28.26
Granted		77,854		$	27.70
Vested		(68,869	)	$	27.41
Forfeited		(1,434	)	$	28.37
Non-vested at March 31, 2018		133,828		$	28.37

As of March 31, 2018, there was $2,648,000 of unrecognized compensation expense related to these awards, which will be recognized over the remaining vesting period of approximately 1.9 years.