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Stock-Based Compensation | 12 Months Ended
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Nov. 30, 2019
Share-based Compensation [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). Total stock-based compensation expense for 2019, 2018 and 2017 was $37.2 million, $25.6 million and $23.9 million, respectively. Total unrecognized stock-based compensation expense related to our RSUs and stock options at November 30, 2019 was $27.5 million and the weighted-average period over which this will be recognized is 1.4 years. Total unrecognized stock-based compensation expense related to our LTPP is variable in nature and is dependent on the company's execution against established performance metrics under performance cycles related to this plan. As of November 30, 2019, we have 5.1 million shares remaining available for future issuance under our RSUs, stock option and LTPP award programs. For all awards, forfeiture rates are considered in the calculation of compensation expense. The following summarizes the key terms and the methods of valuation and expense recognition for each of our stock-based compensation awards. RSUs RSUs are valued at the market price of the underlying stock, discounted by foregone dividends, on the date of grant. Substantially all of the RSUs granted vest over a three-year term or, if earlier, upon the retirement eligibility date of the holder. Compensation expense is recorded in the consolidated income statement ratably over the shorter of the period until vested or the employee's retirement eligibility date. A summary of our RSU activity for the years ended November 30 follows:
(shares in thousands) | 2019 | 2018 | 2017
| Shares | Weighted- average price | Shares | Weighted- average price | Shares | Weighted- average price
Beginning of year | 423 |  | $ | 103.05 |  | 267 |  | $ | 86.47 |  | 267 |  | $ | 80.08 |
Granted | 129 |  | 143.23 |  | 278 |  | 112.72 |  | 131 |  | 94.63 |
Vested | (159 | ) | 104.15 |  | (113 | ) | 88.15 |  | (118 | ) | 80.62 |
Forfeited | (12 | ) | 113.55 |  | (9 | ) | 96.53 |  | (13 | ) | 90.85 |
Outstanding—end of year | 381 |  | $ | 115.89 |  | 423 |  | $ | 103.05 |  | 267 |  | $ | 86.47 |
Stock Options Stock options are granted with an exercise price equal to the market price of the stock on the date of grant. Substantially all of the options vest ratably over a three-year period or, if earlier, upon the retirement-eligibility dates of the holders and are exercisable over a 10-year period. Upon exercise of the option, shares are issued from our authorized and unissued shares. The fair value of the options is estimated with a lattice option pricing model which uses the assumptions in the following table. We believe the lattice model provides an appropriate estimate of fair value of our options as it allows for a range of possible outcomes over an option term and can be adjusted for changes in certain assumptions over time. Expected volatilities are based primarily on the historical performance of our stock. We also use historical data to estimate the timing and amount of option exercises and forfeitures within the valuation model. The expected term of the options is an output of the option pricing model and estimates the period of time that options are expected to remain unexercised. The risk-free interest rate is based on the U.S. Treasury yield curve in effect at the time of grant. Compensation expense is calculated based on the fair value of the options on the date of grant. This compensation is recorded in the consolidated income statement ratably over the shorter of the period until vested or the employee's retirement eligibility date. The per share weighted-average fair value for all options granted was $27.51, $20.30 and $17.61 in 2019, 2018 and 2017, respectively. These fair values were computed using the following range of assumptions for the years ended November 30:
| 2019 | 2018 | 2017
Risk-free interest rates | 2.2 - 2.5% |  | 1.7 - 2.9% |  | 0.9 - 2.4% |
Dividend yield | 1.5 | % | 2.0 | % | 1.9 | %
Expected volatility | 17.4 | % | 18.4% |  | 18.7% |
Expected lives | 7.5 years |  | 7.6 years |  | 7.6 years |
Under our stock option plans, we may issue shares on a net basis at the request of the option holder. This occurs by netting the option cost in shares from the shares exercised. A summary of our stock option activity for the years ended November 30 follows:
(shares in millions) | 2019 | 2018 | 2017
| Shares | Weighted- average exercise price | Shares | Weighted- average exercise price | Shares | Weighted- average exercise price
Beginning of year | 3.6 |  | $ | 82.60 |  | 4.8 |  | $ | 71.91 |  | 4.9 |  | $ | 66.00 |
Granted | 0.3 |  | 147.39 |  | 0.4 |  | 105.95 |  | 0.6 |  | 98.07 |
Exercised | (1.3 | ) | 71.08 |  | (1.6 | ) | 55.28 |  | (0.7 | ) | 50.63 |
Outstanding—end of year | 2.6 |  | 96.18 |  | 3.6 |  | 82.60 |  | 4.8 |  | 71.91 |
Exercisable—end of year | 1.9 |  | $ | 86.61 |  | 2.8 |  | $ | 76.54 |  | 3.8 |  | $ | 65.34 |
As of November 30, 2019, the intrinsic value (the difference between the exercise price and the market price) for all options currently outstanding was $189.6 million and for options currently exercisable was $157.6 million. At November 30, 2019, the differences between options outstanding and options expected to vest and their related weighted-average exercise prices, aggregate intrinsic values and weighted-average remaining lives were not material. The total intrinsic value of all options exercised during the years ended November 30, 2019, 2018 and 2017 was $111.0 million, $108.0 million and $31.4 million, respectively. A summary of our stock options outstanding and exercisable at November 30, 2019 follows:
(shares in millions) | Options outstanding | Options exercisable
Range of exercise price | Shares | Weighted- average remaining life (yrs.) | Weighted- average exercise price | Shares | Weighted- average remaining life (yrs.) | Weighted- average exercise price
$38.00 - $79.00 | 0.9 |  | 4.4 | $ | 71.40 |  | 0.9 |  | 4.4 | $ | 71.40 |
$79.01 - $103.00 | 1.0 |  | 6.8 | 99.04 |  | 0.9 |  | 6.7 | 99.22 |
$103.01 - $149.00 | 0.7 |  | 8.8 | 125.75 |  | 0.1 |  | 8.3 | 106.65 |
| 2.6 |  | 6.5 | $ | 96.18 |  | 1.9 |  | 5.7 | $ | 86.61 |
LTPP Our LTPP grants in 2018 and 2017 will deliver awards in a combination of cash and company stock. The stock compensation portion of the LTPP awards shares of company stock if certain company performance objectives are met at the end of a three-year period. LTPP awards granted in 2019 will be delivered entirely in company stock, with the target award calculated using a combination of a market-based total shareholder return and performance-based components. These awards are valued based on the fair value of the underlying stock on the date of grant. Compensation expense is recorded in the income statement ratably over the three-year period of the program based on the number of shares ultimately expected to be awarded using our estimate of the most likely outcome of achieving the performance objectives. A summary of the LTPP award activity for the years ended November 30 follows:
(shares in thousands) | 2019 | 2018 | 2017
| Shares | Weighted- average price | Shares | Weighted- average price | Shares | Weighted- average price
Beginning of year | 218 |  | $ | 83.55 |  | 220 |  | $ | 84.31 |  | 201 |  | $ | 78.10 |
Granted | 68 |  | 150.51 |  | 86 |  | 101.90 |  | 78 |  | 89.96 |
Vested | (57 | ) | 86.40 |  | (60 | ) | 74.02 |  | (43 | ) | 69.04 |
Performance adjustment | (33 | ) | 89.96 |  | (26 | ) | 86.40 |  | (16 | ) | 74.02 |
Forfeited | — |  | — |  | (2 | ) | 97.41 |  | — |  | — |
Outstanding—end of year | 196 |  | $ | 115.96 |  | 218 |  | $ | 83.55 |  | 220 |  | $ | 84.31 |

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- Definition The entire disclosure for compensation-related costs for equity-based compensation, which may include disclosure of policies, compensation plan details, allocation of equity compensation, incentive distributions, equity-based arrangements to obtain goods and services, deferred compensation arrangements, employee stock ownership plan details and employee stock purchase plan details. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 718 -URI http://asc.fasb.org/topic&trid=2228938 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 505 -SubTopic 50 -URI http://asc.fasb.org/subtopic&trid=2208855 + Details
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