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SHARE-BASED COMPENSATION PLANS (Tables)
 12 Months Ended
Feb. 29, 2016
Share-based compensation plans  
Schedule of shares authorized for issuance under the stock incentive plan

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Shares originally authorized

 

 

 

 

 

 

 

 

 

 

 

 

   
3,750,000

Less cumulative stock option grants issued, net of forfeitures

 

 

 

 

 

 

 

 
(1,213,822)

Less restricted share awards previously vested and settled

 

 

 

 

 

 

 

 
(423,970)

Subtotal

 

 

 

 

 

 

 

 

 

 

 

 

 
2,112,208

Less maximum RSUs issuable upon vesting (1)

 

 

 

 

 

 

 

 
(57,364)

Less estimated maximum PSUs issuable upon vesting (1)

 

 

 

 

 

 

 

 
(306,206)

Shares available for issuance

 

 

 

 

 

 

 

 

 

 

 

 

 
1,748,638

(1)

RSUs and PSUs potentially issuable are estimated assuming the maximum payouts adjusted for known actual forfeitures to date. 

 

Schedule of share-based compensation expense in SG&A

SHARE-BASED PAYMENT EXPENSE

(in thousands, except per share data)

 

 

 

 

 

 

 

 

 

 

 

 

   

Fiscal Years Ended the Last Day of February,

 

 

2016

   

2015

   

2014

Stock options

   

$
2,961

   

$
3,279

   

$
2,380

Directors stock compensation

 

 
700

 

 
816

 

 
619

Performance based and other stock awards (1)

 

 
4,478

 

 
1,732

 

 
13,446

CEO separation compensation (2)

 

 

 -

 

 

 -

 

 
15,000

Employee stock purchase plan

 

 
552

 

 
391

 

 
424

Share-based payment expense

 

 
8,691

 

 
6,218

 

 
31,869

Less income tax benefits

 

 
(1,284)

 

 
(661)

 

 
(5,709)

Share-based payment expense, net of income tax benefits

 

$
7,407

 

$
5,557

 

$
26,160

 

 

 

 

 

 

 

 

 

 

Earnings per share impact of share based payment expense:

 

 

 

 

 

 

 

 

 

Basic

 

$
0.26

 

$
0.19

 

$
0.82

Diluted

 

$
0.26

 

$
0.19

 

$
0.81

(1)

Fiscal year 2014 includes RSAs for 62,304 shares of common stock with a fair value at the date of the award of $67.10 per share and PSUs for 100,000 shares of common stock having a fair value at the date of grant of $32.88. These awards, which were granted in accordance with the terms of our former CEO’s employment agreement, vested and settled in April 2014.

 

(2)

$15 million in aggregate fair value of shares of common stock, awarded under the terms of the employment and separation agreements with our former CEO.

 

Schedule of assumptions used for fair value of stock option grants

 

 

 

 

 

 

 

 

 

Fiscal Years Ended the Last Day of February,

 

   

2016

   

2015

   

2014

Range of risk free interest rates used

 

0.9% - 1.5%

 

1.2% - 1.5%

 

0.6% - 1.3%

Expected dividend rate

 

0.0%

 

0.0%

 

0.0%

Weighted average volatility rate

 

39.1%

 

48.0%

 

38.8%

Range of expected volatility rates used

 

35.9% - 39.7%

 

35.3% - 50.5%

 

34.0% - 41.7%

Range of expected terms used (in years)

 

4.1 - 4.4

 

4.1 - 4.4

 

4.1 - 4.4

 

Summary of option activity

SUMMARY OF STOCK OPTION ACTIVITY

(in thousands, except contractual term and per share data)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted

 

 

 

 

 

 

 

Weighted

 

Weighted

 

Average

 

 

 

 

 

 

 

Average

 

Average

 

Remaining

 

 

 

 

 

 

 

Exercise

 

Grant Date

 

Contractual

 

 

 

 

 

 

 

Price

 

Fair Value

 

Term

 

Intrinsic

 

 

Options

 

(per share)

 

(per share)

 

(in years)

 

Value

Outstanding at March 1, 2013

 
864

 

$
29.89

 

$
11.98

 

 
6.26

 

$
6,209

Grants

 
264

 

 
36.45

 

 
11.61

 

 

 

 

 

 

Exercises

 
(239)

 

 
25.36

 

 

 

 

 

 

 

 
4,663

Forfeitures / expirations

 
(50)

 

 
33.55

 

 

 

 

 

 

 

 

 

Outstanding at February 28, 2014

 
839

 

 
33.03

 

 
12.38

 

 
6.48

 

 
27,081

Grants

 
257

 

 
63.84

 

 
25.22

 

 

 

 

 

 

Exercises

 
(187)

 

 
29.70

 

 

 

 

 

 

 

 
6,498

Forfeitures / expirations

 
(141)

 

 
40.67

 

 

 

 

 

 

 

 

 

Outstanding at February 28, 2015

 
768

 

 
42.76

 

 
16.28

 

 
6.59

 

 
26,008

Grants

 
186

 

 
88.17

 

 
28.82

 

 

 

 

 

 

Exercises

 
(178)

 

 
37.86

 

 

 

 

 

 

 

 
9,480

Forfeitures / expirations

 
(127)

 

 
59.01

 

 

 

 

 

 

 

 

 

Outstanding at February 29, 2016

 
649

 

$
53.94

 

$
19.52

 

 
6.13

 

$
26,847

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Exercisable at February 29, 2016

 
128

 

$
36.26

 

$
14.27

 

 
5.04

 

$
7,563

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Schedule of non-vested option activity

NON-VESTED STOCK OPTION ACTIVITY

(in thousands, except per share data)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted

 

 

 

 

 

 

 

 

 

 

 

 

 

Average

 

 

 

 

 

 

 

 

 

 

 

Non-

 

Grant Date

 

 

 

 

 

 

 

 

 

 

 

Vested

 

Fair Value

 

 

 

 

 

 

 

 

 

 

 

Options

 

(per share)

Outstanding at March 1, 2013

 

 

 

 

 

 

 

 

 

 
689

 

$
12.62

Grants

 

 

 

 

 

 

 

 

 

 
264

 

 
11.61

Vested or forfeited

 

 

 

 

 

 

 

 

 

 
(225)

 

 
11.06

Outstanding at February 28, 2014

 

 

 

 

 

 

 

 

 

 
728

 

 
12.74

Grants

 

 

 

 

 

 

 

 

 

 
257

 

 
25.22

Vested or forfeited

 

 

 

 

 

 

 

 

 

 
(311)

 

 
13.87

Outstanding at February 28, 2015

 

 

 

 

 

 

 

 

 

 
674

 

 
16.98

Grants

 

 

 

 

 

 

 

 

 

 
186

 

 
28.82

Vested or forfeited

 

 

 

 

 

 

 

 

 

 
(339)

 

 
17.59

Outstanding at February 29, 2016

 

 

 

 

 

 

 

 

 

 
521

 

$
20.81

 

Schedule of unrecognized share-based compensation expense

UNRECOGNIZED SHARE-BASED COMPENSATION EXPENSE

(in thousands, except weighted average expense period data)

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted

 

 

 

 

 

Average

 

 

Unrecognized

 

Period of

 

 

Compensation

 

Recognition

 

 

Expense

 

(in months)

Stock options

 

$
5,670

 
33.8

Restricted stock units (RSUs and PSUs)

 

 
7,470

 
16.9

 

Restricted stock (RSA)  
Share-based compensation plans  
Summary of award activity

SUMMARY OF RESTRICTED STOCK AWARD ACTIVITY

(in thousands, except per share data)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted

 

 

 

 

 

 

 

 

 

 

 

 

 

Average

 

 

 

 

 

 

 

 

 

 

 

Restricted

 

Grant Date

 

 

 

 

 

 

 

 

 

 

 

Stock

 

Fair Value

 

Fair Value

 

 

 

 

 

 

 

 

Awards

 

(per share)

 

Outstanding

Due for issue at March 1, 2013 (1)

 

 

 

 

 

 

 
160

 

$
35.55

 

$
5,920

Earned (2)

 

 

 

 

 

 

 
62

 

 
67.10

 

 

 

Vested and issued (1)

 

 

 

 

 

 

 
(160)

 

 
35.55

 

 

 

Due for Issue at February 28, 2014

 

 

 

 

 

 

 
62

 

 
67.10

 

 
4,073

Vested and issued (2)

 

 

 

 

 

 

 
(62)

 

 
67.10

 

 

 

Due for issue at February 28, 2015

 

 

 

 

 

 

 

 -

 

 

 -

 

 

 -

Granted (3)

 

 

 

 

 

 

 
2

 

 
89.12

 

 

 

Vested and issued (3)

 

 

 

 

 

 

 
(2)

 

 
89.12

 

 

 

Due for issue at February 29, 2016

 

 

 

 

 

 

 

 -

 

$

 -

 

$

 -

The schedule above includes the following awards earned based on fiscal years 2013 and 2014 performance and vested in accordance with the terms of our former CEO’s employment agreement:

 

(1)

Fiscal year 2013 RSAs, which vested on February 28, 2014.

 

(2)

Fiscal year 2014 RSAs, which vested on April 22, 2014.

 

In addition, the following award was granted to our current CEO:

 

(3)

Fiscal year 2016 RSA, which was granted and vested on May 8, 2015.

 

Restricted Stock Units (RSU)  
Share-based compensation plans  
Summary of award activity

SUMMARY OF RESTRICTED STOCK UNIT ACTIVITY

(in thousands, except per share data)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Average

 

 

 

 

 

 

 

 

 

 

 

Restricted

 

 

Grant Date

 

 

 

 

 

 

 

 

 

 

 

Stock

 

 

Fair Value

 

 

Fair Value

 

 

 

 

 

 

 

 

Units

 

 

(per share)

 

 

Outstanding

Outstanding at March 1, 2013

 

 

 

 

 

 

 
700

 

$
32.88

 

$
25,956

Vested (1)

 

 

 

 

 

 

 
(100)

 

 
32.88

 

 

 

Forfeited (2)

 

 

 

 

 

 

 
(500)

 

 
32.88

 

 

 

Outstanding at February 28, 2014 (3)

 

 

 

 

 

 

 
100

 

 
32.88

 

 
6,531

Granted (4)

 

 

 

 

 

 

 
118

 

 
58.35

 

 

 

Vested (3)

 

 

 

 

 

 

 
(100)

 

 
32.88

 

 

 

Outstanding at February 28, 2015

 

 

 

 

 

 

 
118

 

 
58.35

 

 
9,041

Granted (4)

 

 

 

 

 

 

 
95

 

 
76.62

 

 

 

Vested

 

 

 

 

 

 

 

 -

 

 

 -

 

 

 

Outstanding at February 29, 2016

 

 

 

 

 

 

 
213

 

$
66.50

 

$
20,311

The schedule above includes the following awards and forfeitures recognized in accordance with the terms of our former CEO’s employment agreement:

 

(1)

Includes fiscal year 2013 PSUs for 100,000 shares of common stock. On April 22, 2013, PSUs for 33,400 shares of common stock vested and settled at a fair value of $35.55 per share. On February 28, 2014, PSUs for 66,600 shares of common stock vested and settled at a fair value of $65.31 per share.

 

(2)

PSUs for 500,000 shares of common stock were forfeited.

 

(3)

Includes fiscal year 2014 PSUs for 100,000 shares of common stock, which were vested and settled on April 22, 2014 at a fair value of $67.10 per share.

 

In addition, the following awards were granted to our current CEO and members of management:

 

(4)

Includes target level RSUs and PSUs granted in connection with long-term incentive compensation for fiscal years 2015 and 2016.