Equity Compensation Plans

6 Months Ended

Nov. 30, 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 six months ended November 30, 2015 follows:


	Shares			Weighted- Average Exercise Price
Options outstanding at June 1, 2015		1,988,000		$	31.04
Granted		549,000			46.98
Exercised		(315,000	)		22.09
Forfeited		(15,000	)		35.58

Options outstanding at November 30, 2015		2,207,000			36.26

During the three and six month periods ended November 30, 2015 and 2014, the Company recorded $1,248,000 and $1,053,000 and $2,545,000 and $1,959,000 of compensation expense related to its share-based awards.

The weighted-average fair value of stock options granted during fiscal 2016 and fiscal 2015, estimated on the date of grant using the Black-Scholes option pricing model was $13.11 and $11.88 respectively, per option. The fair value of stock options granted was estimated using the following weighted-average assumptions.


	FY2016			FY2015
Risk-free interest rate		1.2	%		1.2	%
Expected dividend yield		0	%		0	%
Expected stock price volatility		33.3	%		36.2	%
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.