Accounting for Stock-Based Compensation

3 Months Ended

Aug. 31, 2015

Accounting for Stock-Based Compensation

Note 4 — Accounting for Stock-Based Compensation

Restricted Stock

In August 2015, as part of our annual long-term stock incentive compensation, we granted 109,269 shares of performance-based restricted stock and 28,069 shares of time-based restricted stock to eligible employees. The grant date fair value per share for both grants was $26.62. In June 2015, we also granted 45,000 shares of time-based restricted stock to members of the Board of Directors with a grant date fair value per share of $29.54.

Expense charged to operations for restricted stock during the three month periods ended August 31, 2015 and 2014 was $1.2 million and $1.3 million, respectively.

Stock Options

In August 2015, as part of our annual long-term stock incentive compensation, we granted 488,767 stock options to eligible employees at an exercise price of $26.62 and weighted average fair value of $7.48. The fair value of stock options was estimated on the date of grant using the Black-Scholes option pricing model with the following assumptions:

Risk-free interest rate	1.6	%
Expected volatility of common stock	36.1	%
Dividend yield	1.1	%
Expected option term in years	4.2

The total intrinsic value of stock options exercised during the three month periods ended August 31, 2015 and 2014 was $0.8 million and $1.0 million, respectively. Expense charged to operations for stock options during the three month periods ended August 31, 2015 and 2014 was $0.8 million and $0.7 million, respectively. No stock options were granted during the three month period ended August 31, 2014.