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Stock-based Compensation
 9 Months Ended
Aug. 31, 2014
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 expense recorded in selling, general and administrative (SG&A) expense (in millions):
 
Three months ended August 31,
 
Nine months ended August 31,
 
2014
 
2013
 
2014
 
2013
Stock-based compensation expense
$
3.0

 
$
3.6

 
$
15.1

 
$
16.1


Our 2014 annual grant of stock options and RSUs occurred in the second quarter, similar to the 2013 annual grant. The weighted-average grant-date fair value of an option granted in 2014 was $9.48 and in 2013 was $9.47 as calculated under a lattice pricing model. For the 2014 grant, substantially all of the options granted vest ratably over a three-year period or upon retirement. Previously, stock options granted vested ratably over a four-year period or upon retirement. The fair values of option grants in the stated periods were computed using the following range of assumptions for our various stock compensation plans:
 
2014
 
2013
Risk-free interest rates
0.1 - 2.7%
 
0.1 - 1.8%
Dividend yield
2.1%
 
1.9%
Expected volatility
15.6 - 20.1%
 
14.5 - 20.6%
Expected lives (in years)
5.8
 
6.2

The following is a summary of all stock option activity for the nine months ended August 31, 2014 and 2013:
 
2014
 
2013
(shares in millions)
Number
of
Shares
 
Weighted-
Average
Exercise
Price
 
Number
of
Shares
 
Weighted-
Average
Exercise
Price
Outstanding at beginning of period
4.6

 
$
47.73

 
5.1

 
$
40.06

Granted
1.1

 
71.12

 
0.9

 
71.60

Exercised
(0.6
)
 
35.93

 
(1.0
)
 
32.59

Outstanding at end of the period
5.1

 
$
54.02

 
5.0

 
$
47.28

Exercisable at end of the period
3.0

 
$
45.55

 
3.0

 
$
39.68

As of August 31, 2014 the intrinsic value (the difference between the exercise price and the market price) for all options outstanding was $82.5 million and for options currently exercisable was $73.4 million. The total intrinsic value of all options exercised during the nine months ended August 31, 2014 and 2013 was $20.9 million and $35.4 million, respectively.
The following is a summary of all of our RSU activity for the nine months ended August 31, 2014 and 2013:
 
2014
 
2013
(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
161

 
$
60.86

 
192

 
$
49.65

Granted
180

 
71.15

 
89

 
71.60

Vested
(93
)
 
62.57

 
(113
)
 
51.09

Forfeited
(5
)
 
69.05

 
(3
)
 
55.16

Outstanding at end of period
243

 
$
67.66

 
165

 
$
60.64




The following is a summary of the MTIP award activity for the nine months ended August 31, 2014 and 2013:
 
2014
 
2013
(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
334

 
$
51.73

 
240

 
$
46.63

Granted
105

 
69.04

 
94

 
64.74

Vested
(118
)
 
44.47

 
—

 
—

Forfeited
(2
)
 
44.47

 
—

 
—

Outstanding at end of period
319

 
$
60.15

 
334

 
$
51.73