Stock-Based Compensation

6 Months Ended

Sep. 30, 2013

Stock-Based Compensation [Abstract]

Stock-Based Compensation

Note 6: Stock-Based Compensation

The Company’s stock-based incentive plans for employees consist of the following: (1) a discretionary equity program for management and other key employees, and (2) a long-term incentive compensation program for officers and key executives that consists of stock option and restricted stock components granted for retention and performance. In addition, stock options and stock awards may be granted to non-employee directors.

Compensation cost is calculated based on the fair value of the instrument at the time of grant, and is recognized as expense over the vesting period of the stock-based award.  Modine recognized stock-based compensation cost of $0.7 million for both of the three month periods ended September 30, 2013 and 2012.  Modine recognized stock-based compensation cost of $1.6 million for both of the six month periods ended September 30, 2013 and 2012.  The performance component of awards granted under the Company’s long-term incentive plan during the first quarter of fiscal 2014 is based on a target three-year average consolidated return on average capital employed, three-year average revenue growth, and Asia segment operating income at the end of the three-year performance period.

The fair market value of stock-based compensation awards granted during the six months ended September 30, 2013 and 2012 were as follows:

	Six months ended September 30,
	2013				2012
			Fair Value				Fair Value
	Shares		Per Award		Shares		Per Award
Stock options		0.2	$	7.76		0.2	$	4.26
Restricted stock - retention		0.3	$	10.40		0.4	$	5.80
Restricted stock - performance based		0.2	$	10.40		0.4	$	5.75

The following assumptions were used in determining fair value for stock options:

	Six months ended September 30,
	2013			2012
Expected life of awards in years		6.3			6.3
Risk-free interest rate		1.3	%		0.9	%
Expected volatility of the Company's stock		88.7	%		87.4	%
Expected dividend yield on the Company's stock		0.0	%		0.0	%

As of September 30, 2013, the total remaining unrecognized compensation cost related to non-vested stock-based compensation awards, which will be amortized over the weighted average remaining service periods, were as follows:

	Unrecognized Compensation Cost		Weighted Average Remaining Service Period in Years
Stock options	$	1.8		2.8
Restricted stock - retention		4.8		3.1
Restricted stock - performance based		2.5		2.3
Total	$	9.1		2.8