STOCK COMPENSATION PLANS

9 Months Ended

Jul. 31, 2011

STOCK COMPENSATION PLANS

NOTE 3—STOCK COMPENSATION PLANS

Refer to Note 9 in the Company’s October 31, 2010 audited financial statements for further information on our employee benefit plans and stock based compensation plans. Total stock based compensation expense during the nine months ended July 31, 2011 and July 31, 2010 was $4,078,000 and $6,506,000, respectively, and is detailed below.

During the nine months ended July 31, 2011, participants in the Company’s Management Share Purchase Plan purchased a total of 17,353 shares of restricted stock at an average price of $43.13 per share and the Company issued 4,265 matching restricted shares. During the nine months ended July 31, 2011 and 2010 the Company recorded compensation cost, included in the total stock based compensation expense above, of $148,000 and $211,000, respectively, related to the Management Share Purchase Plan.

On November 1, 2010, the Company entered into performance share agreements that grant certain officers and key employees the right to receive a target number of 86,725 shares of the Company’s common stock, subject to the Company’s achievement of certain performance measures. The Company also has performance share agreements in place with certain officers and key employees that were entered into during fiscal 2009 and 2010. The aggregate target number of shares specified in performance share agreements outstanding as of July 31, 2011 totaled 204,691. The Company recorded compensation cost, included in the total stock based compensation expense above, of $1,046,000 and $3,076,000 during the nine months ended July 31, 2011 and July 31, 2010, respectively, related to the performance share agreements entered into during fiscal 2009. No compensation cost has been recorded for the performance share agreements entered into in fiscal 2010 and fiscal 2011, as achievement of the applicable performance based criteria is not deemed probable.

On February 17, 2011, the Company granted 86,725 shares of restricted stock to certain officers and key management employees. The restricted stock had a grant date fair value of $43.70 per share and will vest on November 1, 2014. Also on February 17, 2011, the Company granted 25,300 shares of restricted stock to certain outside directors. The restricted stock had a grant date fair value of $43.70 per share and vests one, two or three years from the date of the grant. The Company has non-vested restricted stock grants outstanding that were granted during prior fiscal years to certain officers, key employees and outside directors. The aggregate number of shares outstanding at July 31, 2011 related to all unvested restricted stock grants totaled 567,188. During the nine months ended July 31, 2011 and 2010 the Company recorded compensation cost, included in the total stock based compensation expense above, of $2,884,000 and $3,219,000, respectively, related to restricted stock grants.