Stock-Based Compensation

9 Months Ended

Dec. 31, 2013

Stock-Based Compensation [Abstract]

Stock-Based Compensation

Note 6: Stock-Based Compensation

The Company’s stock-based incentive programs consist of the following: (1) 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, (2) a discretionary equity program for management and other key employees, and (3) stock options and/or stock awards for 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 $1.5 million and $1.4 million for the three-month periods ended December 31, 2013 and 2012, respectively.  Modine recognized stock-based compensation cost of $3.1 million and $3.0 million for the nine-month periods ended December 31, 2013 and 2012, respectively.  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 nine months ended December 31, 2013 and 2012 were as follows:

	Nine months ended December 31,
	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
Unrestricted stock		0.1		14.53		0.1		7.14

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

	Nine months ended December 31,
	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 December 31, 2013, the total remaining unrecognized compensation cost related to non-vested stock-based compensation awards, which will be amortized over the remaining service periods, was as follows:

	Unrecognized Compensation Cost		Weighted Average Remaining Service Period in Years
Stock options	$	1.5		2.7
Restricted stock - retention		4.3		2.9
Restricted stock - performance based		2.3		2.1
Total	$	8.1		2.6