Equity Incentive Plan

6 Months Ended

Nov. 30, 2014

Disclosure of Compensation Related Costs, Share-based Payments [Abstract]

Equity Incentive Plan

Equity Incentive Plan

Our 2005 Equity Incentive Plan (the “Equity Incentive Plan”) authorizes our Board of Directors to grant incentive and non-statutory stock option grants, stock appreciation rights, restricted stock awards, restricted stock units, performance unit awards and performance share awards covering a maximum of 1,000 shares of our common stock. Pursuant to the Equity Incentive Plan, we have granted incentive and non-statutory options to directors, officers and key employees at prices not less than 100% of the fair market value on the day of grant. In addition, we have granted restricted stock and restricted stock units to directors, officers and key employees. The Equity Incentive Plan provides for a variety of vesting dates. All previously issued and outstanding stock options granted under the Equity Incentive Plan expired on or before October 2011.

Restricted Stock Units

A restricted stock unit represents the right to receive one share of our common stock, provided that the vesting conditions are satisfied. The following table represents restricted stock unit activity for the six months ended November 30, 2014:

	Restricted Stock Units		Weighted – Average Grant Date Fair Value
Nonvested at June 1, 2014	122		$	17.57
Granted	87		15.64
Vested	(71	)	17.14
Nonvested at November 30, 2014	138		$	16.57

We granted 18 and 87 restricted stock units during the three and six months, respectively, ended November 30, 2014 and 11 and 65 restricted stock units during the three and six months, respectively, ended November 30, 2013. Under the terms of our restricted stock unit agreements, unvested restricted stock unit awards contain forfeitable rights to dividends. Because the dividends are forfeitable, they are defined as non-participating securities. As of November 30, 2014, we have unrecognized share-based compensation cost of approximately $1,848 associated with restricted stock unit awards. This cost is expected to be recognized over a weighted-average period of approximately 1.9 years.

We had 397 and 326 vested restricted stock units as of November 30, 2014 and 2013, respectively, which receive dividends following vesting and are convertible to common shares five years after the grant date.

Accounting for Share Based Payments

Accounting guidance requires all share-based payments to employees, including grants of employee stock options, restricted stock and restricted stock units, to be recognized as compensation expense in the consolidated financial statements based on their fair values. Compensation expense is recognized over the period that an employee provides service in exchange for the award, approximately three years.

Forfeitures are estimated at the date of grant based on historical experience. We use the market price of our common stock on the date of grant to calculate the fair value of each grant of restricted stock units.

We recorded $361 and $649 of stock-based compensation as part of SG&A expenses for the three and six months ended November 30, 2014 and $381 and $724 of stock-based compensation as part of SG&A expenses for the three and six months ended November 30, 2013.

We receive a tax deduction, included as an excess tax benefit, for dividends paid on vested restricted stock units where the underlying shares have not been issued. Excess tax benefits are realized tax benefits from tax deductions for such dividends. The total excess tax benefit realized from dividend payments for vested restricted stock units for the six months ended November 30, 2014 and 2013 was $116 and $131, respectively.