Stock-based Compensation

9 Months Ended

Aug. 31, 2013

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

Stock-Based Compensation

STOCK-BASED COMPENSATION

We have three types of stock-based compensation awards: restricted stock units (RSUs), stock options and company stock awarded as part of our mid-term incentive program (MTIP). The following table sets forth the stock-based compensation recorded in selling, general and administrative (SG&A) expense (in millions):

	Three months ended August 31,				Nine months ended August 31,
	2013		2012		2013		2012
Stock-based compensation expense	$	3.6	$	3.3	$	16.1	$	11.9

Our 2013 annual grant of stock options and RSUs occurred in the second quarter, similar to the 2012 annual grant. The weighted-average grant-date fair value of an option granted in 2013 was $9.47 and in 2012 was $7.17 as calculated under a lattice pricing model. The fair values of option grants in the stated periods were computed using the following range of assumptions for our various stock compensation plans:

	2013	2012
Risk-free interest rates	0.1 - 1.8%	0.1 - 2.2%
Dividend yield	1.9%	2.3%
Expected volatility	14.5 - 20.6%	16.5 - 21.6%
Expected lives	6.2	6.1

The following is a summary of all stock option activity for the nine months ended August 31, 2013 and 2012:

	2013				2012
(shares in millions)	Number of Shares		Weighted- Average Exercise Price		Number of Shares		Weighted- Average Exercise Price
Outstanding at beginning of period	5.1		$	40.06	6.6		$	34.98
Granted	0.9		71.60		0.8		54.24
Exercised	(1.0	)	32.59		(1.7	)	30.41
Outstanding at end of the period	5.0		47.28		5.7		39.31
Exercisable at end of the period	3.0		$	39.68	3.4		$	34.78

As of August 31, 2013 the intrinsic value (the difference between the exercise price and the market price) for all options outstanding was $104.3 million and for exercisable options was $82.9 million. The total intrinsic value of all options exercised during the nine months ended August 31, 2013 and 2012 was $35.4 million and $42.5 million, respectively.

The following is a summary of all of our RSU activity for the nine months ended August 31, 2013 and 2012:

	2013				2012
(shares in thousands)	Number of Shares		Weighted- Average Grant-Date Fair Value		Number of Shares		Weighted- Average Grant-Date Fair Value
Outstanding at beginning of period	192		$	49.65	233		$	43.23
Granted	89		71.60		112		54.24
Vested	(113	)	51.09		(146	)	42.74
Forfeited	(3	)	55.16		(6	)	47.42
Outstanding at end of period	165		$	60.64	193		$	49.84

The following is a summary of the MTIP award activity for the nine months ended August 31, 2013 and 2012:

	2013			2012
(shares in thousands)	Number of Shares	Weighted- Average Grant-Date Fair Value		Number of Shares	Weighted- Average Grant-Date Fair Value
Outstanding at beginning of period	240	$	46.63	120	$	44.47
Granted	94	64.74		120	48.78
Outstanding at end of period	334	$	51.73	240	$	46.63