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EQUITY COMPENSATION PLANS
 3 Months Ended
Aug. 31, 2012
EQUITY COMPENSATION PLANS

5. EQUITY COMPENSATION PLANS

Options are generally granted under the employee and director stock option plan for 5 year periods and become exercisable in equal annual installments during that period. Certain non-qualified options are granted for 10 year periods. A summary of stock option activity during the three months ended August 31, 2012 follows:

 

     Shares     Weighted-Average
Exercise Price		  

Options outstanding at June 1, 2012

      1,543,000      $ 22.34   

Granted

      0        0.00   

Exercised

      (183,000 )      14.07   

Forfeited

      (4,000 )      27.44   
  

 

 

    

Options outstanding at August 31, 2012

      1,356,000        23.45   

During the three month period ended August 31, 2012 and 2011, the Company recorded $682,000 and $600,000 of compensation expense related to its share-based awards.

The weighted-average fair value of stock options granted during FY-2012, estimated on the date of grant using the Black-Scholes option pricing model was $10.42 per option. The fair value of stock options granted was estimated using the following weighted-average assumptions. No options were granted in FY-2013 to date.

 

     FY-13      FY-12  

Risk-free interest rate

      N/A         1.2 % 

Expected dividend yield

      N/A         0 % 

Expected stock price volatility

      N/A         36.4 % 

Expected option life

      N/A         4.0 years   

The Company has an Employee Stock Purchase plan that provides for employee stock purchases at a 5% discount to market price. The discount is expensed as of the date of purchase.