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Stock-based Compensation
 6 Months Ended
May 31, 2016
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 long-term performance plan (LTPP). The following table sets forth the stock-based compensation expense recorded in selling, general and administrative (SG&A) expense (in millions):
 
Three months ended May 31,
 
Six months ended May 31,
 
2016
 
2015
 
2016
 
2015
Stock-based compensation expense
$
12.8

 
$
10.2

 
$
15.8

 
$
13.9


Our 2016 annual grant of stock options and RSUs occurred in the second quarter, similar to the 2015 annual grant. The weighted-average grant-date fair value of an option granted in 2016 was $17.50 and in 2015 was $12.52 as calculated under a lattice pricing model. Substantially all of the options granted vest ratably over a three-year period or upon retirement. The fair values of option grants in the stated periods were computed using the following assumptions for our various stock compensation plans:
 
2016
 
2015
Risk-free interest rates
0.5 - 1.9%
 
0.1 - 2.0%
Dividend yield
1.7%
 
2.1%
Expected volatility
18.7%
 
18.8%
Expected lives (in years)
7.6
 
7.7

The following is a summary of our stock option activity for the six months ended May 31, 2016 and 2015:
 
2016
 
2015
(shares in millions)
Number
of
Shares
 
Weighted-
Average
Exercise
Price
 
Number
of
Shares
 
Weighted-
Average
Exercise
Price
Outstanding at beginning of period
4.8

 
$
59.20

 
4.8

 
$
54.17

Granted
0.7

 
99.92

 
0.8

 
76.32

Exercised
(0.4
)
 
48.90

 
(0.4
)
 
42.46

Outstanding at end of the period
5.1

 
$
65.85

 
5.2

 
$
58.33

Exercisable at end of the period
3.5

 
$
56.60

 
3.4

 
$
50.97

As of May 31, 2016, the intrinsic value (the difference between the exercise price and the market price) for all options outstanding was $161.6 million and for options currently exercisable was $141.4 million. The total intrinsic value of all options exercised during the six months ended May 31, 2016 and 2015 was $18.0 million and $11.0 million, respectively.
The following is a summary of our RSU activity for the six months ended May 31, 2016 and 2015:
 
2016
 
2015
(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
270

 
$
71.03

 
239

 
$
67.60

Granted
104

 
96.59

 
134

 
76.04

Vested
(94
)
 
72.21

 
(84
)
 
71.30

Forfeited
(6
)
 
78.64

 
(7
)
 
72.28

Outstanding at end of period
274

 
$
81.42

 
282

 
$
70.39


The following is a summary of our LTPP activity for the six months ended May 31, 2016 and 2015:
 
2016
 
2015
(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

 
$
70.94

 
231

 
$
61.94

Granted
108

 
86.40

 
96

 
74.02

Vested
(18
)
 
64.74

 
(65
)
 
48.78

Forfeited
(1
)
 
74.02

 
(14
)
 
70.92

Outstanding at end of period
281

 
$
77.28

 
248

 
$
69.55