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Equity Compensation Plans
 9 Months Ended
Feb. 28, 2015
Equity Compensation Plans

5. EQUITY COMPENSATION PLANS

Options are generally granted under the employee and director stock option plan for five-year periods and become exercisable in equal annual installments during that period. Certain non-qualified options are granted for ten-year periods. A summary of stock option activity during the nine months ended February 28, 2015 follows:

 

     Shares      Weighted-
Average
Exercise Price		  

Options outstanding at June 1, 2014

      1,869,000       $ 25.69   

Granted

      530,000         39.79   

Exercised

      (295,000 )       17.04   

Forfeited

      (28,000 )       33.74   
  

 

 

     

Options outstanding at February 28, 2015

   2,076,000      30.41   

During the three and nine month periods ended February 28, 2015 and 2014, the Company recorded $1,228,000 and $993,000 and $3,187,000 and $2,198,000 of compensation expense related to its share-based awards.

The weighted-average fair value of stock options granted during fiscal 2015 and fiscal 2014, estimated on the date of grant using the Black-Scholes option pricing model was $11.91 and $9.87 respectively, per option. The fair value of stock options granted was estimated using the following weighted-average assumptions.

 

     FY2015   FY2014

Risk-free interest rate

    1.2%   0.8%

Expected dividend yield

    0%   0%

Expected stock price volatility

    36.2%   33.1%

Expected option life

    4.0 years   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 recorded in administrative expense as of the date of purchase.