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Stock-Based Compensation | 12 Months Ended
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Oct. 31, 2019
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] |
Stock-Based Compensation | Note 14 — Stock-based compensation During the 2018 Annual Meeting of Shareholders, our shareholders approved the Amended and Restated 2012 Stock Incentive and Award Plan (the “2012 Plan”). The 2012 Plan provides for the granting of stock options, stock appreciation rights, restricted shares, restricted share units, performance shares, cash awards and other stock or performance-based incentives. A maximum of 4,525 common shares are available for grant under the 2012 Plan. Stock options — Nonqualified or incentive stock options may be granted to our employees and directors. Generally, options granted to employees may be exercised beginning one year from the date of grant at a rate not exceeding 25 percent per year and expire 10 years from the date of grant. Vesting accelerates upon a qualified termination in connection with a change in control. In the event of termination of employment due to early retirement or normal retirement at age 65, options granted within 12 months prior to termination are forfeited, and vesting continues post retirement for all other unvested options granted. In the event of disability or death, all unvested stock options granted within 12 months prior to termination (or at any time prior to December 28, 2017) fully vest. Termination for any other reason results in forfeiture of unvested options and vested options in certain circumstances. The amortized cost of options is accelerated if the retirement eligibility date occurs before the normal vesting date. Option exercises are satisfied through the issuance of treasury shares on a first-in, first-out basis. We recognized compensation expense related to stock options of $10,067, $9,964 and $9,326 for 2019, 2018 and 2017, respectively. The following table summarizes activity related to stock options during 2019:
|  | Number of Options |  |  | Weighted˗Average Exercise Price Per Share |  |  | Aggregate Intrinsic Value |  |  | Weighted˗Average Remaining Term
Outstanding at October 31, 2018 |  |  | 1,885 |  |  | $ | 85.33 |  |  |  |  |  |  |
Granted |  |  | 348 |  |  | $ | 124.89 |  |  |  |  |  |  |
Exercised |  |  | (416 | ) |  | $ | 62.51 |  |  |  |  |  |  |
Forfeited or expired |  |  | (30 | ) |  | $ | 121.60 |  |  |  |  |  |  |
Outstanding at October 31, 2019 |  |  | 1,787 |  |  | $ | 97.74 |  |  | $ | 105,567 |  |  | 6.6 years
Expected to vest |  |  | 873 |  |  | $ | 115.26 |  |  | $ | 36,255 |  |  | 8.0 years
Exercisable at October 31, 2019 |  |  | 902 |  |  | $ | 80.42 |  |  | $ | 68,915 |  |  | 5.3 years
Summarized information on currently outstanding options follows:
|  | Range of Exercise Price |
|  | $43 - $62 |  |  | $63 - $81 |  |  | $82 - $129 |
Number outstanding |  |  | 160 |  |  |  | 638 |  |  |  | 989 |
Weighted-average remaining contractual life, in years |  |  | 2.6 |  |  |  | 5.4 |  |  |  | 8.1 |
Weighted-average exercise price |  | $ | 55.20 |  |  | $ | 73.48 |  |  | $ | 120.26 |
Number exercisable |  |  | 160 |  |  |  | 527 |  |  |  | 215 |
Weighted-average exercise price |  | $ | 55.20 |  |  | $ | 74.03 |  |  | $ | 114.72 |
As of October 31, 2019, there was $7,904 of total unrecognized compensation cost related to nonvested stock options. That cost is expected to be amortized over a weighted average period of approximately 1.5 years. The Black-Scholes option valuation model was used to estimate the fair value of traded options that have no vesting restrictions and are fully transferable. Option valuation models require the input of subjective assumptions, including the expected stock price volatility. The fair value of each option grant was estimated at the date of grant using the Black-Scholes option-pricing model with the following assumptions:
|  |  | 2019 |  |  |  | 2018 |  |  |  | 2017 |
Expected volatility |  | 24.1%-24.5% |  |  | 24.0%-26.7% |  |  | 26.0%-29.2% |
Expected dividend yield |  | 1.04% |  |  | 0.97% |  |  | 0.91%-1.17% |
Risk-free interest rate |  | 2.84%-2.95% |  |  | 2.09%-2.20% |  |  | 1.89%-2.06% |
Expected life of the option (in years) |  | 5.3-6.2 |  |  | 5.4-6.2 |  |  | 5.4-6.2 |
The weighted-average expected volatility used to value options granted in 2019, 2018 and 2017 was 24.3 percent, 25.0 percent and 29.1 percent, respectively. Historical information was the primary basis for the selection of the expected volatility, expected dividend yield and the expected lives of the options. The risk-free interest rate was selected based upon yields of United States Treasury issues with terms equal to the expected life of the option being valued. The weighted average grant date fair value of stock options granted during 2019, 2018 and 2017 was $31.74, $31.42 and $28.86, respectively. The total intrinsic value of options exercised during 2019, 2018 and 2017 was $31,881, $35,696 and $22,317, respectively. Cash received from the exercise of stock options for 2019, 2018 and 2017 was $26,020, $18,811 and $14,086, respectively. Restricted shares and restricted share units — We may grant restricted shares and/or restricted share units to our employees and directors. These shares or units may not be transferred for a designated period of time (generally one to three years) defined at the date of grant. For employee recipients, in the event of termination of employment due to early retirement, with consent of the Company, restricted shares granted within 12 months prior to termination are forfeited, and other restricted shares vest on a pro-rata basis. In the event of termination of employment due to normal retirement at age 65, restricted shares granted within 12 months prior to termination are forfeited, and, for other restricted shares, the restriction period will lapse and the shares will vest and be transferable. For restricted shares granted within 12 months prior to termination (or at any time prior to December 28, 2017), the restrictions lapse in the event of a recipient’s disability or death. Termination for any other reason prior to the lapse of any restrictions results in forfeiture of the shares. For non-employee directors, all restrictions lapse in the event of disability or death. Termination of service as a director for any other reason within one year of date of grant results in a pro-rata vesting of shares or units. As shares or units are issued, deferred stock-based compensation equivalent to the fair market value on the date of grant is expensed over the vesting period. Tax benefits arising from the lapse of restrictions are recognized when realized and credited to capital in excess of stated value. The following table summarizes activity related to restricted shares during 2019:
|  | Number of Shares |  |  | Weighted˗Average Grant Date Fair Value Per Share |
Restricted at October 31, 2018 |  |  | 53 |  |  | $ | 108.82 |
Granted |  |  | 41 |  |  | $ | 131.30 |
Forfeited |  |  | (2 | ) |  | $ | 111.75 |
Vested |  |  | (26 | ) |  | $ | 97.84 |
Restricted at October 31, 2019 |  |  | 66 |  |  | $ | 126.83 |
As of October 31, 2019, there was $4,579 of unrecognized compensation cost related to restricted shares. The cost is expected to be amortized over a weighted average period of 1.6 years. The amount charged to expense related to restricted shares was $3,608, $2,610 and $2,127 in 2019, 2018 and 2017, respectively. These amounts included common share dividends of $84, $70, and $64 in 2019, 2018 and 2017, respectively. The following table summarizes activity related to restricted share units in 2019:
|  | Number of Units |  |  | Weighted˗Average Grant Date Fair Value |
Restricted share units at October 31, 2018 |  |  | — |  |  | $ | — |
Granted |  |  | 8 |  |  | $ | 126.83 |
Vested |  |  | (8 | ) |  | $ | 126.83 |
Restricted share units at October 31, 2019 |  |  | — |  |  | $ | — |
As of October 31, 2019, there was no remaining expense to be recognized related to outstanding restricted share units. The amount charged to expense related to restricted share units during 2019 was $1,052, and was $1,011 for both 2018 and 2017, respectively. Deferred directors’ compensation — Non-employee directors may defer all or part of their cash and equity-based compensation until retirement. Cash compensation may be deferred as cash or as share equivalent units. Deferred cash amounts are recorded as liabilities, and share equivalent units are recorded as equity. Additional share equivalent units are earned when common share dividends are declared. The following table summarizes activity related to director deferred compensation share equivalent units during 2019:
|  | Number of Shares |  |  | Weighted˗Average Grant Date Fair Value Per Share |
Outstanding at October 31, 2018 |  |  | 107 |  |  | $ | 51.24 |
Restricted stock units vested |  |  | 5 |  |  | $ | 126.89 |
Dividend equivalents |  |  | 2 |  |  | $ | 132.49 |
Outstanding at October 31, 2019 |  |  | 114 |  |  | $ | 55.52 |
The amount charged to expense related to director deferred compensation was $154, $127 and $106 in 2019, 2018 and 2017, respectively. Performance share incentive awards — Executive officers and selected other key employees are eligible to receive common share-based incentive awards. Payouts, in the form of unrestricted common shares, vary based on the degree to which corporate financial performance exceeds predetermined threshold, target and maximum performance goals over three-year performance periods. No payout will occur unless threshold performance is achieved. The amount of compensation expense is based upon current performance projections for each three-year period and the percentage of the requisite service that has been rendered. The calculations are also based upon the grant date fair value determined using the closing market price of our common shares at the grant date, reduced by the implied value of dividends not to be paid. The per share values were $120.12 and $138.53 for 2019, $123.45 and $138.53 for 2018, and $103.75, $104.49 and $138.53 for 2017. The amounts charged to expense for executive officers and selected other key employees in 2019, 2018 and 2017 were $2,989, $7,635 and $7,398, respectively. The cumulative amount recorded in shareholders’ equity at October 31, 2019, and 2018 was $10,459 and $14,757, respectively. Deferred compensation — Our executive officers and other highly compensated employees may elect to defer up to 100 percent of their base pay and cash incentive compensation and, for executive officers, up to 90 percent of their share-based performance incentive award payout each year. Additional share units are credited for quarterly dividends paid on our common shares. Expense related to dividends paid under this plan was $300, $273 and $264 for 2019, 2018 and 2017, respectively. Shares reserved for future issuance — At October 31, 2019, there were 2,460 of common shares reserved for future issuance through the exercise of outstanding options or rights.

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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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