Stock-Based Compensation

3 Months Ended

Jun. 30, 2016

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 options granted for retention and performance, (2) a discretionary equity program for management and other key employees, and (3) stock awards and/or stock options 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 $1.4 million and $1.1 million for the three months ended June 30, 2016 and 2015, respectively. The performance component of awards granted under the Company’s long-term incentive plan during the first quarter of fiscal 2017 is based upon a target three-year average consolidated return on average capital employed and three-year average revenue growth.

The fair value of stock-based compensation awards granted during the three months ended June 30, 2016 and 2015 were as follows:

	Three months ended June 30,
	2016				2015
	Shares		Fair Value Per Award		Shares		Fair Value Per Award
Stock options		0.3	$	4.60		0.2	$	7.11
Restricted stock - retention		0.3	$	10.00		0.3	$	11.39
Restricted stock - performance based		0.3	$	10.00		0.2	$	11.39

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

	Three months ended June 30,
	2016			2015
Expected life of awards in years		6.4			6.3
Risk-free interest rate		1.4	%		1.9	%
Expected volatility of the Company's stock		45.5	%		66.9	%
Expected dividend yield on the Company's stock		0.0	%		0.0	%

As of June 30, 2016, 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	$	3.1		3.0
Restricted stock - retention		7.0		3.0
Restricted stock - performance based		3.6		2.4
Total	$	13.7		2.8

- Definition

The entire disclosure for compensation-related costs for equity-based compensation, which may include disclosure of policies, compensation plan details, allocation of equity compensation, incentive distributions, equity-based arrangements to obtain goods and services, deferred compensation arrangements, employee stock ownership plan details and employee stock purchase plan details.

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