Stock-Based Compensation

Stock-based compensation expense is recognized using the fair-value method for all awards. The Company determines the fair value of stock option awards using the Black-Scholes option pricing model. Options are granted whereby the option exercise price is equivalent to the market price of the Company's common stock at the date of grant. For the three and six months ended January 31, 2018, the Company recorded pretax stock-based compensation expense associated with stock options of $1.7 million and $5.5 million, respectively, and recorded $0.1 million and $1.3 million, respectively, of related tax benefits. For the three and six months ended January 31, 2017, the Company recorded pretax stock-based compensation expense associated with stock options of $3.8 million and $4.9 million, respectively, and recorded $1.3 million and $1.6 million, respectively, of related tax benefits. In addition, for the three and six months ended January 31, 2018, the Company recorded expense associated with performance-based awards of $1.0 million and $3.7 million, respectively. For the three and six months ended January 31, 2017, the Company recorded expense associated with performance-based awards of $0.3 million and $0.5 million, respectively.

The following table summarizes stock option activity during the six months ended January 31, 2018:



	Options Outstanding		Weighted Average Exercise Price
Outstanding as of July 31, 2017	6,685,551		$	32.60
Granted	877,050		$	45.69
Exercised	(530,916	)	$	26.32
Canceled	(21,193	)	$	37.60
Outstanding as of January 31, 2018	7,010,492		$	34.70

The total intrinsic value of options exercised during the six months ended January 31, 2018 and 2017 was $11.8 million and $8.6 million, respectively. The weighted average fair value for options granted during the six months ended January 31, 2018 and 2017 was $9.29 and $10.09 per share, respectively.

The following table summarizes information concerning outstanding and exercisable options as of January 31, 2018:



Range of Exercise Prices	Number Outstanding	Weighted Average Remaining Contractual Life (Years)	Weighted Average Exercise Price of Outstanding Options		Number Exercisable	Weighted Average Exercise Price of Exercisable Options
$ 0.00 to $22.69	983,883	1.54	$	19.68	983,883	$	19.68
$22.70 to $28.69	861,049	7.86	$	28.06	567,606	$	28.05
$28.70 to $34.69	1,383,480	3.92	$	31.64	1,366,082	$	31.64
$34.70 to $40.69	1,380,549	5.64	$	37.03	1,370,383	$	37.03
$40.70 and above	2,401,531	8.34	$	43.65	947,730	$	42.39
	7,010,492	5.92	$	34.70	5,235,684	$	32.36

As of January 31, 2018, the aggregate intrinsic value of options outstanding and exercisable was $111.9 million and $95.8 million, respectively.

As of January 31, 2018, there was $9.9 million of total unrecognized compensation expense related to non-vested stock options granted under the 2010 Master Stock Incentive Plan. This unvested expense is expected to be recognized during fiscal years 2018, 2019, 2020 and 2021.