Stock-Based Compensation

6 Months Ended

Sep. 30, 2014

Stock-Based Compensation [Abstract]

Stock-Based Compensation

Note 5: Stock-Based Compensation

The Company’s stock-based incentive programs consist of the following: (1) a long-term incentive compensation program for officers and executives that consists of restricted stock and stock option 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.  The Company recognized stock-based compensation cost of $1.7 million and $0.7 million for the three months ended September 30, 2014 and 2013, respectively.  The Company recognized stock-based compensation cost of $2.7 million and $1.6 million for the six months ended September 30, 2014 and 2013, respectively.  The performance component of awards granted under the Company’s long-term incentive plan during the first quarter of fiscal 2015 is based upon a target three-year average consolidated return on average capital employed and three-year average revenue growth.

The fair market value of stock-based compensation awards granted during the six months ended September 30, 2014 and 2013 were as follows:

	Six months ended September 30,
	2014				2013
			Fair Value				Fair Value
	Shares		Per Award		Shares		Per Award
Stock options		0.1	$	10.21		0.2	$	7.76
Restricted stock - retention		0.2	$	14.94		0.3	$	10.40
Restricted stock - performance based		0.2	$	14.94		0.2	$	10.40
Unrestricted stock		0.1	$	14.83		-	$	-

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

	Six months ended September 30,
	2014			2013
Expected life of awards in years		6.3			6.3
Risk-free interest rate		2.1	%		1.3	%
Expected volatility of the Company's stock		76.1	%		88.7	%
Expected dividend yield on the Company's stock		0.0	%		0.0	%

As of September 30, 2014, 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	$	2.2		3.1
Restricted stock - retention		5.8		2.9
Restricted stock - performance based		3.3		2.2
Total	$	11.3		2.7