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Stock-Based Compensation
 12 Months Ended
Mar. 28, 2020
Share-based Payment Arrangement [Abstract]  
Stock-Based Compensation 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 256,879 shares were still available for grant as of March 28, 2020. Upon option exercise, new shares of the Company's common stock are issued and when restricted stock vests, restricted stock shares issued become unrestricted. Awards 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 vest over a defined period or based on certain performance criteria, as determined by the plan administrator (the Compensation Committee of the Board of Directors, which consists of independent directors), but typically is no more than 5 years. 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, decreased income before income taxes by approximately $3.9 million, $3.4 million and $2.3 million for fiscal years 2020, 2019 and 2018, respectively. As of March 28, 2020, total unrecognized compensation cost related to stock options was approximately $5.4 million and the related weighted-average period over which it is expected to be recognized is approximately 2.63 years.
Stock Options. The fair value of each stock option award is estimated on the date of the grant using the Black Scholes-Merton option pricing model, which requires the input of assumptions. The Company estimates the risk-free interest rate based on the U.S. Treasury security rate in effect at the time of the grant. The expected life of the options, volatility and dividend rates are estimated based on historical data.
The following table summarizes stock option activity for the fiscal years 2020, 2019 and 2018:
 
Number
of Shares
 
Weighted
Average
Exercise
Price
 
Weighted
Average
Remaining
Contractual
Term (years)
 
Aggregate
Intrinsic
Value
(in thousands)
Options outstanding at April 1, 2017
464,930

 
$
68.01

 
 
 
 
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

Granted
73,750

 
194.08

 
 
 
 
Exercised
(74,144
)
 
53.78

 
 
 
 
Canceled or expired
(6,700
)
 
150.34

 
 
 
 
Options outstanding at March 30, 2019
411,111

 
$
102.71

 
3.74
 
$
61,025

Granted
74,750

 
145.24

 
 
 
 
Exercised
(120,687
)
 
63.66

 
 
 
 
Canceled or expired
(1,000
)
 
99.65

 
 
 
 
Options outstanding at March 28, 2020
364,174

 
$
123.93

 
4.02
 
$
49,000

 
 
 
 
 
 
 
 
Exercisable at March 31, 2018
203,721

 
$
61.38

 
2.49
 
$
30,631

Exercisable at March 30, 2019
197,663

 
$
71.28

 
2.35
 
$
31,296

Exercisable at March 28, 2020
179,133

 
$
100.82

 
2.83
 
$
25,423


The weighted-average estimated fair value of employee stock options granted during fiscal years 2020, 2019 and 2018 was $46.84, $64.55 and $42.30, respectively. The total intrinsic value of options exercised during fiscal years 2020, 2019 and 2018 was $15.7 million, $12.3 million and $7.7 million, respectively.
The fair values of options granted were estimated at the date of grant using the following weighted average assumptions:
 
Fiscal Year
 
2020
 
2019
 
2018
Volatility
36.0
%
 
31.5
%
 
32.3
%
Risk-free interest rate
2.0
%
 
2.7
%
 
1.9
%
Dividend yield
—
%
 
—
%
 
—
%
Expected option life in years
4.33

 
5.18

 
5.14

Estimated forfeiture rate
7.0
%
 
7.0
%
 
7.0
%

Restricted Stock Awards. The fair value of restricted stock awards is estimated as the closing price of the Company's common stock on the date of grant. A summary of restricted stock award activity is as follows:
 
Number of Shares
 
Performance-Based Awards
 
Service-Based Awards
 
Total
Outstanding at March 30, 2019
—

 
—

 
—

Awarded
7,305

 
4,900

 
12,205

Released
—

 
(400
)
 
(400
)
Canceled or expired
—

 
—

 
—

Outstanding at March 28, 2020
7,305

 
4,500

 
11,805

Unvested target stock awards that may vest based upon performance conditions through fiscal year 2022
7,305