16. Stock-Based Compensation

The Company maintains stock incentive plans whereby stock option grants or awards of restricted stock may be made to certain officers, directors and key employees. The plans, which are shareholder approved, permit the award of up to 1,650,000 shares of the Company’s common stock, of which 343,037 shares were still available for grant. When options are exercised, new shares of the Company’s common stock are issued. Stock options may not be granted below 100% of the fair market value of the Company’s common stock at the date of grant and generally expire seven years from the date of grant. Stock options and awards of restricted stock typically vest over a one to five year period as determined by the plan administrator (the Compensation Committee of the Board of Directors, which consists of independent directors). The stock incentive plans provide for accelerated vesting of stock options and removal of restrictions on restricted stock awards upon a change in control (as defined in the plans).

The Company applies the fair value recognition provisions of ASC 718. Stock option compensation expense, including restricted stock, decreased income before income taxes by approximately $2.3 million, $2.1 million and $1.8 million for fiscal years 2018, 2017 and 2016, respectively. As of March 31, 2018, total unrecognized compensation cost related to stock options was approximately $3.4 million and the related weighted-average period over which it is expected to be recognized is approximately 3.01 years.

The following table summarizes the option activity within the Company’s stock-based compensation plans for the fiscal years 2018, 2017 and 2016:



	Number of Shares		Weighted Average Exercise Price		Weighted Average Remaining Contractual Term (years)	Aggregate Intrinsic Value (in thousands)
Options outstanding at March 28, 2015	506,980		$	44.42
Granted	90,500		75.27
Exercised	(104,500	)	33.46
Canceled or expired	(1,000	)	75.90
Options outstanding at April 2, 2016	491,980		$	51.91	3.28	$	35,906
Granted	116,850		98.93
Exercised	(121,275	)	30.02
Canceled or expired	(22,625	)	80.21
Options outstanding at April 1, 2017	464,930		$	68.01	3.83	$	42,194
Granted	42,000		131.93
Exercised	(87,925	)	42.54
Canceled or expired	(800	)	99.65
Options outstanding at March 31, 2018	418,205		$	79.73	3.78	$	60,439

Exercisable at April 2, 2016	320,975		$	41.01	2.09	$	24,786
Exercisable at April 1, 2017	244,025		$	50.77	2.29	$	23,626
Exercisable at March 31, 2018	203,721		$	61.38	2.49	$	30,631

The weighted-average estimated fair value of employee stock options granted during fiscal years 2018, 2017 and 2016 were $42.30, $35.55 and $27.83, respectively. The total intrinsic value of options exercised during fiscal years 2018, 2017 and 2016 was $7.7 million, $7.8 million and $4.9 million, respectively.

The fair values of options granted were estimated at the date of grant using the following weighted average assumptions:



	Fiscal Year
	2018		2017		2016
Volatility	32.3	%	38.3	%	39.8	%
Risk-free interest rate	1.9	%	1.1	%	1.5	%
Dividend yield	—	%	—	%	—	%
Expected option life in years	5.14		5.24		5.03
Estimated forfeiture rate	7.0	%	6.0	%	6.0	%