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Stock-Based Compensation
 12 Months Ended
Apr. 30, 2020
Share-based Payment Arrangement [Abstract]  
Stock-Based Compensation Stock-Based Compensation
 
The Company has two types of stock-based compensation awards in effect for its employees and directors. The Company issued stock options until fiscal 2015 and has issued restricted stock units ("RSUs") since fiscal 2010. Total compensation expense related to stock-based awards for the fiscal years ended April 30, 2020, 2019 and 2018 was $4.0 million, $3.0 million and $3.1 million, respectively.  The Company recognizes stock-based compensation costs net of an estimated forfeiture rate for those shares expected to vest on a straight-line basis over the requisite service period of the award. The Company estimates the forfeiture rates based upon its historical experience.
 
Stock Incentive Plans
 
At April 30, 2020, the Company had RSU awards outstanding under two different plans: (1) 2016 employee stock incentive plan; and (2) 2015 non-employee directors equity ownership plan.  As of April 30, 2020, there were 716,027 shares of common stock available for future stock-based compensation awards under the Company’s stock incentive plans.

Methodology Assumptions
     
For purposes of determining the fair value of RSUs, the Company uses the closing stock price of its common stock as reported on the NASDAQ Global Select Market on the date of grant. The fair value of the Company’s RSU awards is expensed on a straight-line basis over the vesting period of the RSUs to the extent the Company believes it is probable the related performance criteria, if any, will be met.  The risk-free interest rate is based on the implied yield on a U.S. Treasury constant maturity with a remaining term equal to the vesting period of the RSU grant.
 
Stock Option Activity
 
Stock options granted and outstanding under each of the Company’s plans vest evenly over a three-year period and have contractual terms of ten years. The exercise price of all stock options granted is equal to the fair market value of the Company’s common stock on the option grant date.

The Company did not grant stock options during the fiscal years ended April 30, 2020, 2019 and 2018. There were no stock options outstanding at April 30, 2020.
 
The following table presents a summary of the Company’s stock option activity for the fiscal years ended April 30, 2020, 2019 and 2018 (remaining contractual term in years and exercise prices are weighted-averages):
 
NUMBER OF OPTIONS

WEIGHTED AVERAGE REMAINING CONTRACTUAL TERM

WEIGHTED AVERAGE EXERCISE PRICE

AGGREGATE INTRINSIC VALUE
(in thousands)
Outstanding at April 30, 2017
54,918


5.6

$37.95

$
2,963











Exercised
(36,950
)

0

34.90

1,748

Outstanding at April 30, 2018
17,968


4.5

$44.23

$
682











Exercised
(12,801
)

0

39.04

651

Outstanding at April 30, 2019
5,167


6.1

$57.11

$
170











Exercised
(5,167
)

0

57.11

—

Outstanding at April 30, 2020
—


0

$—

$
—











Vested and expected to vest in the future at April 30, 2020
—


0

$—

$
—

Exercisable at April 30, 2020
—


0

$—

$
—



Cash received from option exercises for the fiscal years ended April 30, 2020, 2019 and 2018, was an aggregate of $0.3 million, $0.5 million and $1.3 million, respectively.  The actual tax benefit realized for the tax deduction from option exercises of stock option awards was immaterial for the fiscal years ended April 30, 2020, 2019 and 2018, respectively.
 
Restricted Stock Unit Activity:
 
The Company’s RSUs granted to employees cliff-vest over a three-year period from date of grant, while RSUs granted to non-employee directors vest daily over a two-year period from date of grant.  Directors were granted service-based RSUs only, while employees were awarded both service-based and performance-based RSUs ("PBRSUs") in fiscal years 2020, 2019 and 2018.  The PBRSUs granted in fiscal 2020, 2019 and 2018 are earned based on achievement of a number of goals pertaining to the Company’s financial performance during three one-year performance periods and the achievement of certain cultural goals for the three-year period. Employees who satisfy the vesting criteria will receive a proportional amount of PBRSUs based upon the Compensation Committee’s assessment of the Company’s achievement of the performance criteria.

The following table contains a summary of the Company’s RSU activity for the fiscal years ended April 30, 2020, 2019 and 2018:
 
PERFORMANCE-BASED RSUs

SERVICE-BASED RSUs

TOTAL RSUs

WEIGHTED AVERAGE GRANT
DATE FAIR VALUE
Issued and outstanding, April 30, 2017
125,067


67,454


192,521


$50.09











Granted
33,080


22,250


55,330


$95.62
Cancelled due to non-achievement of performance goals
—


—


—


$—
Settled in common stock
(51,191
)

(28,447
)

(79,638
)

$32.96
Forfeited
(9,305
)

(6,198
)

(15,503
)

$71.91
Issued and outstanding, April 30, 2018
97,651


55,059


152,710


$73.34











Granted
45,615


30,335


75,950


$104.10
Cancelled due to non-achievement of performance goals
(10,352
)

—


(10,352
)

$80.26
Settled in common stock
(34,475
)

(18,778
)

(53,253
)

$60.50
Forfeited
(9,257
)

(5,347
)

(14,604
)

$79.49
Issued and outstanding, April 30, 2019
89,182


61,269


150,451


$76.91











Granted
61,379


42,691


104,070


$53.95
Cancelled due to non-achievement of performance goals
(11,305
)

—


(11,305
)

$85.13
Settled in common stock
(18,628
)

(21,521
)

(40,149
)

$67.03
Forfeited
(2,941
)

(3,229
)

(6,170
)

$86.68
Issued and outstanding, April 30, 2020
117,687


79,210


196,897


$66.68


As of April 30, 2020, there was $7.9 million of total unrecognized compensation expense related to unvested RSUs granted under the Company’s stock-based compensation plans.  This expense is expected to be recognized over a weighted-average period of 1.6 years.
 
For the fiscal years ended April 30, 2020, 2019 and 2018 stock-based compensation expense was allocated as follows:
(in thousands)
2020

2019

2018
Cost of sales and distribution
$
809


$
691


$
667

Selling and marketing expenses
1,006


649


756

General and administrative expenses
2,174


1,700


1,674

Stock-based compensation expense, before income taxes
$
3,989


$
3,040


$
3,097



Restricted Stock Tracking Units:
 
During fiscal 2020, the Board approved grants of 6,483 cash-settled performance-based restricted stock tracking units ("RSTUs") and 3,482 cash-settled service-based RSTUs for more junior level employees.  Each performance-based RSTU entitles the recipient to receive a payment in cash equal to the fair market value of a share of the Company’s common stock as of the payment date if applicable performance and cultural conditions are met and the recipient remains continuously employed with the Company until the units vest.  The service-based RSTUs entitle the recipients to receive a payment in cash equal to the fair market value of a share of our common stock as of the payment date if they remain continuously employed with the Company until the units vest.  All of the RSTUs cliff-vest three years from the grant date.  The fair value of each cash-settled RSTU award is remeasured at the end of each reporting period and the liability is adjusted, and related expense recorded, based on the new fair value. The Company recognized expense of $0.0 million, $0.5 million and $0.4 million related to RSTUs for the fiscal years ended April 30, 2020, 2019 and 2018, respectively. A liability for payment of the RSTUs is included in the Company's balance sheets in the amount of $0.4 million and $0.7 million as of April 30, 2020 and 2019, respectively.