Accounting For Stock-Based Compensation

3 Months Ended

Oct. 31, 2011

Accounting For Stock-Based Compensation [Abstract]

Accounting For Stock-Based Compensation

Note C – Accounting for Stock-Based Compensation

          Stock-based employee compensation cost is recognized using the fair-value based method for all awards. The Company determined the fair value of its option awards using the Black-Scholes option pricing model. All options granted in the first quarter of Fiscal 2012 were reload options, which generally have a shorter contractual life. A reload stock option is granted for the number of shares tendered as payment for the exercise price and tax withholding obligation upon the exercise of a stock option with a reload provision. The option price of the reload option is equal to the market price of the stock on the date of exercise and will expire on the same date as the original option which was exercised. The following assumptions were used to value the options granted during the three months ended October 31, 2011: 1 year expected life; expected volatility of 30.8 percent; risk-free interest rate of 0.14 percent; and annual dividend yield of 1.0 percent. The expected life selected for options granted during the period represents the period of time that the options are expected to be outstanding based on the contractual life and historical data of option holder exercise and termination behavior. Expected volatilities are based upon historical volatility of the Company's stock over a period at least equal to the expected life of each option grant. Option grants are priced at the fair market value of the Company's stock on the date of grant. The weighted average fair value for options granted during the three months ended October 31, 2011 and 2010 was $7.43 per share and $6.85 per share, respectively. For the three months ended October 31, 2011 and October 31, 2010, the Company recorded pretax compensation expense associated with stock options of $0.8 million and recorded $0.3 million of related tax benefit.

          The following table summarizes stock option activity during the three months ended October 31, 2011:

	Options Outstanding			Weighted Average Exercise Price
Outstanding at July 31, 2011		4,193,997		$	35.44
Granted		2,249			59.47
Exercised		(179,866	)		21.69
Canceled		(4,748	)		48.69
Outstanding at October 31, 2011		4,011,632			36.06

          The total intrinsic value of options exercised during the three months ended October 31, 2011 and 2010 was $6.5 million and $10.8 million, respectively.

          The following table summarizes information concerning outstanding and exercisable options as of October 31, 2011:

Range of Exercise Prices	Number Outstanding		Weighted Average Remaining Contractual Life (Years)		Weighted Average Exercise Price		Number Exercisable		Weighted Average Exercise Price
$17 to $25		523,716		1.05	$	17.85		523,716	$	17.85
$25 to $33		1,327,462		2.98		30.66		1,312,048		30.65
$33 to $41		851,438		5.84		35.56		837,641		35.58
$41 to $49		808,026		7.37		43.53		633,418		43.88
$49 and above		500,990		8.97		58.20		23,740		56.79
		4,011,632		4.97		36.06		3,330,563		32.58

          At October 31, 2011, the aggregate intrinsic value of options outstanding and exercisable was $117.7 million and $109.3 million, respectively.

          As of October 31, 2011, there was $5.2 million of total unrecognized compensation cost related to non-vested stock options granted under the 2001 and 2010 Master Stock Incentive Plans. This unvested cost is expected to be recognized during the remainder of Fiscal Years 2012, 2013, and 2014.