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Stock-Based Compensation
 6 Months Ended
May 31, 2011
Stock-Based Compensation  
Stock-Based Compensation
5. STOCK-BASED COMPENSATION

The following table sets forth the stock-based compensation recorded in selling, general and administrative (SG&A) expense (in millions):

 

     Three months
ended May 31,		      Six months
ended May 31,		  
     2011      2010      2011      2010  

Stock-based compensation expense

    $ 5.5       $ 5.5       $ 7.6       $ 7.5   

Our 2011 annual grant of stock options and restricted stock units (RSU) occurred in the second quarter, similar to the 2010 annual grant. The weighted-average grant-date fair value of an option granted in 2011 was $7.99 and in 2010 was $6.88 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:

 

     2011    2010

Risk-free interest rates

    0.1 - 3.5%    0.2 - 3.8%

Dividend yield

    2.4%    2.7%

Expected volatility

    15.2 - 22.2%    20.4 - 24.2%

Expected lives

    6.4    6.2

The following is a summary of all option activity for the six months ended May 31, 2011 and 2010:

 

     2011      2010  
(shares in millions)    Number
of
Shares		     Weighted-
Average
Exercise
Price		      Number
of
Shares		     Weighted-
Average
Exercise
Price		  

Outstanding at beginning of period

      7.4      $ 32.01         11.3      $ 29.45   

Granted

      0.9        47.40         1.0        38.39   

Exercised

      (1.0 )      28.11         (2.1 )      22.03   

Cancelled

      —          —           (0.1 )      34.71   
                     

Outstanding at end of May 31,

      7.3        34.62         10.1        31.77   
                     

Exercisable at end of May 31,

      5.0      $ 32.11         8.0      $ 30.94   
                     

 

As of May 31, 2011 the intrinsic value (the difference between the exercise price and the market price) for all options outstanding was $113.5 million and for exercisable options was $89.5 million. The total intrinsic value of all options exercised during the six months ended May 31, 2011 and 2010 was $19.6 million and $32.4 million, respectively.

The following is a summary of all of our RSU activity for the six months ended May 31, 2011 and 2010:

 

     2011      2010  
(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

      289      $ 35.42         353      $ 32.40   

Granted

      134      $ 47.40         176      $ 38.36   

Vested

      (183 )    $ 34.03         (232 )    $ 33.17   

Forfeited

      (3 )    $ 37.20         (2 )    $ 28.26   
                     

Outstanding at end of February

      237      $ 43.24         295      $ 35.36