Equity Compensation Plans

3 Months Ended

Aug. 31, 2015

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 three months ended August 31, 2015 follows:


	Shares			Weighted- Average Exercise Price
Options outstanding at June 1, 2015		1,988,000		$	31.04
Granted		0			0
Exercised		(245,000	)		21.08
Forfeited		0			0

Options outstanding at August 31, 2015		1,743,000			32.44

During the three month periods ended August 31, 2015 and 2014, the Company recorded $1,297,000 and $907,000 of compensation expense related to its share-based awards.

The weighted-average fair value of stock options granted during fiscal 2015, estimated on the date of grant using the Black-Scholes option pricing model was $11.91, per option. No options were granted in the first quarter of fiscal 2016. The fair value of stock options granted was estimated using the following weighted-average assumptions.


	FY 2015
Risk-free interest rate		1.2	%
Expected dividend yield		0	%
Expected stock price volatility		36.2	%
Expected option life		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.