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Stock-based Compensation | 6 Months Ended
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May 31, 2021
Share-based Payment Arrangement [Abstract] |
Stock-Based Compensation | STOCK-BASED COMPENSATION We have four types of stock-based compensation awards: restricted stock units ("RSUs"), stock options, company stock awarded as part of our long-term performance plan ("LTPP") and, beginning in the fourth quarter of 2020, price-vested stock options. The following table sets forth the stock-based compensation expense recorded in selling, general and administrative ("SG&A") expense (in millions):
| Three months ended May 31, |  | Six months ended May 31,
| 2021 |  | 2020 |  | 2021 |  | 2020
Stock-based compensation expense | $ | 28.5 |  |  | $ | 20.7 |  |  | $ | 42.6 |  |  | $ | 27.1 |
Our 2021 annual grant of stock options and RSUs occurred in the second quarter, similar to the 2020 annual grant. The weighted-average grant-date fair value of each stock option granted in 2021 was $18.36 and in 2020 was $13.26 as calculated under a lattice pricing model. Substantially all of the stock options and RSUs granted in 2021 and 2020 vest ratably over a three-year period or, if earlier, upon the retirement eligibility date of the holder. The fair values of stock option grants in the stated periods were computed using the following range of assumptions for our various stock compensation plans:
| 2021 |  | 2020
Risk-free interest rates | 0.0 - 1.8% |  | 0.0 - 0.6%
Dividend yield | 1.5% |  | 1.8%
Expected volatility | 21.3% |  | 22.8%
Expected lives (in years) | 7.9 |  | 7.9
The following is a summary of our stock option activity for the six months ended May 31, 2021 and 2020:
| 2021 |  | 2020
(shares in millions) | Number of Shares |  | Weighted- Average Exercise Price |  | Number of Shares |  | Weighted- Average Exercise Price
Outstanding at beginning of period | 4.5 |  |  | $ | 53.56 |  |  | 5.2 |  |  | $ | 48.09 |
Granted | 0.8 |  |  | 89.16 |  |  | 0.8 |  |  | 69.31 |
Exercised | (0.1) |  |  | 44.22 |  |  | (0.8) |  |  | 38.74 |
Outstanding at end of the period | 5.2 |  |  | $ | 59.46 |  |  | 5.2 |  |  | $ | 52.11 |
Exercisable at end of the period | 3.8 |  |  | $ | 51.08 |  |  | 4.0 |  |  | $ | 46.83 |
As of May 31, 2021, the intrinsic value (the difference between the exercise price and the market price) for all options outstanding was $153.5 million and for options currently exercisable was $142.7 million. The total intrinsic value of all options exercised during the six months ended May 31, 2021 and 2020 was $4.9 million and $28.9 million, respectively. The following is a summary of our RSU activity for the six months ended May 31, 2021 and 2020:
| 2021 |  | 2020
(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 | 714 |  |  | $ | 61.74 |  |  | 762 |  |  | $ | 57.95 |
Granted | 219 |  |  | 86.86 |  |  | 296 |  |  | 67.03 |
Vested | (282) |  |  | 62.19 |  |  | (274) |  |  | 54.99 |
Forfeited | (12) |  |  | 60.12 |  |  | (12) |  |  | 61.00 |
Outstanding at end of period | 639 |  |  | $ | 70.03 |  |  | 772 |  |  | $ | 62.43 |
The following is a summary of our Price-Vested Stock Options activity for the six months ended May 31, 2021:
(shares in thousands) | Number of Shares |  | Weighted- Average Grant-Date Fair Value |  |  |  |
Outstanding at beginning of period | 2,482 |  |  | $ | 9.40 |  |  |  |  |
Granted | 15 |  |  | 9.66 |  |  |  |  |
Forfeited | (121) |  |  | 9.40 |  |  |  |  |
Outstanding at end of period | 2,376 |  |  | $ | 9.40 |  |  |  |  |
The following is a summary of our LTPP activity for the six months ended May 31, 2021 and 2020:
| 2021 |  | 2020
(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 | 382 |  |  | $ | 71.20 |  |  | 392 |  |  | $ | 57.98 |
Granted | 141 |  |  | 98.30 |  |  | 130 |  |  | 86.14 |
Vested | (121) |  |  | 50.95 |  |  | (88) |  |  | 44.98 |
Forfeited | (12) |  |  | 88.06 |  |  | (2) |  |  | 68.48 |
Outstanding at end of period | 390 |  |  | $ | 86.80 |  |  | 432 |  |  | $ | 69.06 |

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- Definition The entire disclosure for share-based payment arrangement. + 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 + Details
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