As of March 31, 2018, the Company maintains the 2017 Equity Incentive Plan (“2017 EIP”). The 2017 EIP reserved 4,173,554 shares of common stock for the grant of various classes of nonqualified stock options, restricted stock units, market share units and other forms of equity-based compensation. Shares subject to any awards that expire without being exercised or that are forfeited or settled in cash shall again be available for future grants of awards under the 2017 EIP. Shares subject to stock option or stock appreciation right awards, that have been retained by the Company in payment or satisfaction of the exercise price and any applicable tax withholding obligation of such awards, shall not be available for future grant under the 2017 EIP.

As of March 31, 2018, 3,916,468 shares are available for future grants. The Company’s management equity incentive plans are intended to provide an incentive to employees and non-employee directors of the Company to remain in the service of the Company and to increase their interest in the success of the Company in order to promote the long-term interests of the Company. The plans seek to promote the highest level of performance by providing an economic interest in the long-term performance of the Company. The Company settles employee share-based compensation awards with newly issued shares.

During fiscal 2018, the Company granted to management and other key employees 169,703 non-qualified options that vest ratably over 3 years from the date of grant. Options granted prior to fiscal 2018, as well as the options granted in fiscal 2018 expire 10 years from the date of grant.

The Company recognized stock-based compensation expense relating to stock options of $2,741, with a related tax benefit of $700 for fiscal 2018, stock-based compensation expense of $1,705 with a related tax benefit of $457 for fiscal 2017 and stock-based compensation of $1,419 with a related tax benefit of $477 for fiscal 2016.



	Number of Options		Weighted- Average Remaining Contract Term (Years)	Weighted- Average Exercise Price		Aggregate Intrinsic Value
Options outstanding as of March 31, 2015	102,817		7.0	$	55.86	$	1,291
Granted	127,966			68.40		—
Exercised	(11,986	)		14.64		639
Expired	(8,500	)		13.76		437
Options outstanding as of March 31, 2016	210,297		8.5	$	67.54	$	218
Granted	242,068			57.60		—
Exercised	(263	)		18.25		12
Expired	(434	)		18.25		15
Options outstanding as of March 31, 2017	451,668		8.4	$	62.29	$	7,520
Granted	169,703			83.14		—
Exercised	(62,197	)		63.44		1,132
Forfeited	(11,495	)		70.22		75
Expired	(2,089	)		18.25		137
Options outstanding as of March 31, 2018	545,590		8.0	$	68.65	$	2,679
Options exercisable as of March 31, 2018	183,347		7.2	$	65.11	$	806
Options vested and expected to vest, as of March 31, 2018	537,237		8.0	$	68.56	$	2,644




Range of Exercise Prices	Number of Options	Weighted- Average Remaining Contractual Life (Years)	Weighted- Average Exercise Price
$55.00-$60.00	218,405	8.1	$	57.60
$65.01-$70.00	163,160	6.8	$	68.86
$80.01-$83.14	164,025	9.1	$	83.14
	545,590	8.0	$	68.65

In fiscal 2018, the Company granted to non-employee directors 33,408 deferred restricted stock units at the fair value of $46.24 per restricted stock unit at the date of grant. In fiscal 2017, such grants amounted to 25,708 restricted stock units at the fair value of $69.97 per restricted stock unit at the date of grant and in fiscal 2016, such grants amounted to 28,970 restricted stock units at the fair value of $55.32 per restricted stock unit at the date of grant. The awards vest immediately upon the date of grant and are settled in shares of common stock six months after termination of service as a director.

In fiscal 2018, the Company also granted to non-employee directors, 1,345 restricted stock units and in fiscal 2017 and 2016, granted 1,239 and 565 restricted stock units, respectively, at fair values of $73.39, $65.88 and $62.62, for fiscal 2018, 2017 and 2016, respectively, under the deferred compensation plan.

In fiscal 2018, the Company granted to management and other key employees 161,229 restricted stock units at the fair value of $83.14 per restricted stock unit and 60,187 performance market share units at a weighted average fair value of $105.74 per unit at the date of grant.

In fiscal 2017, the Company granted to management and other key employees 237,358 restricted stock units at the fair value of $57.60 per restricted stock unit and 83,720 performance market share units at a weighted average fair value of $70.79 per market share unit at the date of grant.

In fiscal 2016, the Company granted to management and other key employees 120,287 restricted stock units at a fair value of $68.40 per restricted stock unit and 212,635 market share units at a weighted average fair value of $59.94 per market share unit at the date of grant.

For purposes of determining the fair value of performance market share units granted in fiscal 2018 and fiscal 2017, and market share units in fiscal 2016, the Company used a Monte Carlo Simulation with the following assumptions:

A summary of the changes in restricted stock units, performance market share units and market share units awarded to employees and directors that were outstanding under the Company’s equity compensation plans during fiscal 2018 is presented below:



	Restricted Stock Units (RSU)				Performance Market Share Units and Market Share Units (MSU)
	Number of RSU		Weighted- Average Grant Date Fair Value		Number of MSU		Weighted- Average Grant Date Fair Value
Non-vested awards as of March 31, 2017	600,275		$	51.96	449,141		$	65.41
Granted	195,982		74.78		60,187		105.74
Stock dividend	6,203		56.99		3,451		70.19
Performance factor	—		—		13		83.92
Vested	(151,458	)	60.36		(142,426	)	70.21
Canceled	(17,251	)	68.77		(20,430	)	69.10
Non-vested awards as of March 31, 2018	633,751		$	56.60	349,936		$	70.22

The Company recognized stock-based compensation expense relating to restricted stock units and market share units of $16,712, with a related tax benefit of $3,325 for fiscal 2018, $17,480, with a related tax benefit of $4,210 for fiscal 2017 and $18,184, with a related tax benefit of $4,446 for fiscal 2016.