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Stock Compensation (Notes)
 12 Months Ended
Feb. 29, 2020
Share-based Payment Arrangement, Noncash Expense [Abstract]  
Stock compensation Share-based Compensation
The Company has two share-based compensation plans, the 2014 Long Term Incentive Plan (the "2014 Plan") and the Amended and Restated 2005 Long Term Incentive Plan (the “2005 Plan”).
The 2014 Plan provides for broad-based equity grants to employees, including executive officers, and members of the board of directors and permits the granting of restricted shares, restricted stock units, performance awards, stock appreciation rights and other stock-based awards. The maximum number of shares that may be issued under the 2014 Plan is 1.5 million shares and, as of February 29, 2020, the Company had approximately 1.3 million shares reserved for future issuance under this plan.
The 2005 Plan permitted the granting of stock appreciation rights and other equity-based awards to certain employees. This plan was terminated upon the effective date of the 2014 Plan and no future grants may be made under the 2005 Plan. There were stock appreciation rights granted under the 2005 Plan prior to its termination that remain outstanding, and if exercised, such awards will be settled from the balance of shares available for issuance under the 2005 Plan. As of February 29, 2020, there were 0.1 million shares available for issuance under the 2005 Plan. The 2005 Plan will be formally retired when all remaining outstanding stock appreciation rights are exercised, forfeited or expire. All outstanding stock appreciation rights will expire on or before March 1, 2021.
Restricted Stock Unit Awards
Restricted stock unit ("RSU") awards are valued at the market price of the Company's common stock on the grant date. Awards generally vest ratably over a period of three years but these awards may vest early in accordance with the Plan’s accelerated vesting provisions. RSU awards have dividend equivalent rights (“DERs”), which entitle holders of RSUs to the same dividend value per share as holders of common stock. DERs are subject to the same vesting and other terms and conditions as the corresponding unvested RSUs. DERs are accumulated and paid when the underlying shares vest.
A summary of the Company's restricted stock unit award activity (including DERs) for the year ended February 29, 2020 is as follows:
 
 
 
Restricted
Stock Units
 
Weighted
Average Grant
Date Fair Value
Outstanding at beginning of year
 
146,532

 
$
48.93

Granted
 
140,070

 
43.86

Vested
 
(84,595
)
 
54.63

Forfeited
 
(7,061
)
 
45.30

Outstanding at end of year
 
194,946

 
$
44.34


The total fair value of restricted stock units vested during fiscal years 2020, 2019, and 2018 was $3.8 million, $2.1 million and $3.0 million, respectively. For fiscal years 2020, 2019 and 2018, there were 194,946, 146,532 and 109,777, respectively, of non-vested restricted stock units outstanding with weighted average grant date fair values of $44.34, $48.93 and $56.62, respectively.
Performance Share Unit Awards
The Company grants performance share unit ("PSU") awards to certain employees, which also include DERs as described above. These PSU awards have a three year performance cycle and will vest and become issuable, if at all, on the third anniversary of the award date. The PSU awards are subject to the Company’s degree of achievement of a target annual average adjusted return on assets during these three year periods and, in certain circumstances, vesting is based on the relative performance of a predetermined group of peer companies. In addition, these PSU awards may have vesting conditions or certain vesting multipliers, which are based on the Company’s total shareholder return during such three years in comparison to a defined specific industry peer group. The Company estimates the fair value of PSU awards with performance and service conditions using the value of the Company's common stock on the date of grant. The Company estimates the fair value of PSU awards with market conditions using a Monte Carlo simulation model on the date of grant.
A summary of the Company’s performance share unit award activity (including DERs) for the year ended February 29, 2020 is as follows:
 
 
Performance
Stock Units
 
Weighted
Average Grant
Date Fair Value
Outstanding at beginning of year
 
83,125

 
$
50.62

Granted
 
49,000

 
46.19

Vested
 
—

 
—

Forfeited
 
(22,189
)
 
55.08

Outstanding at end of year
 
109,936

 
$
47.75


The PSU awards in the table above are presented at the face value of the respective grants. However, the number of PSU awards that may ultimately vest can vary in a range 0% to 250% of the face amount of such awards depending on the outcome of the performance or market vesting conditions.
Stock Appreciation Rights
Stock appreciation rights ("SARs") are granted with an exercise price equal to the market value of the Company's common stock on the date of grant. These awards generally have a contractual term of 7 years and vest ratably over a period of 3 years although some may vest immediately on issuance. These awards are valued using the Black-Scholes option pricing model. The Company did not grant any SARs in fiscal year 2020, 2019 or 2018.
 
A summary of the Company’s stock appreciation rights activity is as follows for fiscal year 2020, 2019 and 2018:
 
 
 
2020
 
2019
 
2018
 
 
SARs
 
Weighted
Average
Exercise
Price
 
SARs
 
Weighted
Average
Exercise
Price
 
SARs
 
Weighted
Average
Exercise
Price
Outstanding at beginning of year
 
98,184

 
$
44.46

 
148,513

 
$
43.29

 
170,139

 
$
42.02

Exercised
 
(2,965
)
 
44.58

 
(47,484
)
 
40.84

 
(19,481
)
 
31.94

Forfeited
 
(393
)
 
43.92

 
(2,845
)
 
43.92

 
(2,145
)
 
45.36

Outstanding at end of year
 
94,826

 
$
44.58

 
98,184

 
$
44.46

 
148,513

 
$
43.29

Exercisable at end of year
 
94,826

 
$
44.58

 
98,184

 
$
44.46

 
148,513

 
$
43.29


As of February 29, 2020, the average remaining contractual term for both outstanding and exercisable stock appreciation rights was 0.88 years and these awards had no intrinsic value.
The following table summarizes additional information about stock appreciation rights outstanding at February 29, 2020.

Range of
Exercise Prices
 
SARs Outstanding and Exercisable
 
Average
Remaining
Life
 
Weighted
Average
Exercise
Price
$39.65 - $44.15
 
48,061

 
1.00
 
$
43.85

$44.72 - 46.34
 
46,765

 
0.73
 
$
45.33

$39.65 - $46.34
 
94,826

 
0.88
 
$
44.58


 Directors Grants
The Company granted each of its independent directors a total of 2,124, 1,823 and 2,040 shares of its common stock during fiscal years 2020, 2019 and 2018, respectively. These common stock grants were valued at $47.08, $54.85 and $49.00 per share for fiscal years 2020, 2019 and 2018, respectively, which was the market price of the Company's common stock on the respective grant dates.
Employee Stock Purchase Plan
The Company also has an employee stock purchase plan, which allows employees of the Company to purchase common stock of the Company through accumulated payroll deductions. Offerings under this plan have a duration of 24 months (the "offering period"). On the first day of an offering period (the “enrollment date”) the participant is granted the option to purchase shares on each exercise date at the lower of 85% of the market value of a share of our common stock on the enrollment date or the exercise date. The participant’s right to purchase common stock under the plan is restricted to no more than $25,000 per calendar year and the participant may not purchase more than 5,000 shares during any offering period. Participants may terminate their interest in a given offering or a given exercise period by withdrawing all of their accumulated payroll deductions at any time prior to the end of the offering period.
Share-based Compensation Expense
The following table shows share-based compensation expense and the related income tax benefit included in the consolidated statements of income for fiscal year 2020, 2019 and 2018 (in thousands):
 
 
 
2020
 
2019
 
2018
Compensation expense
 
$
6,290

 
$
4,659

 
$
6,121

Income tax benefits
 
$
1,321

 
$
978

 
$
2,122


Unrecognized compensation cost related to all the above at February 29, 2020 totaled $9.6 million. These costs are expected to be recognized over a weighted period of 1.73 years.
The actual tax benefit realized for tax deductions from share-based compensation during each of these fiscal years totaled $(0.1) million, $(0.3) million and $0.2 million, respectively.
The Company’s policy is to issue shares required under these plans from the Company’s authorized but unissued shares. The Company has no formal or informal plan to repurchase shares on the open market to satisfy these requirements.