Share-Based Compensation Plans

3 Months Ended

May. 31, 2015

Note 15 – Share-Based Compensation Plans

We have share-based awards outstanding under several share-based compensation plans. During the fiscal quarter ended May 31, 2015, the Company had the following share-based compensation activity:

We granted options to purchase 145,500 shares of common stock to certain employees. The fair values of these options were estimated using the Black-Scholes option pricing model to estimate fair values ranging from $24.34 to $29.68 for grants with terms of four and five years. The following assumptions were used for the grants: expected lives ranging from 4.05 to 4.35 years; risk-free interest rates ranging from 1.28 to 1.37 percent; zero dividend yield; and expected volatilities ranging from 37.26 to 39.48 percent.

We issued 1,575 restricted shares to non-employee Board members with total grant date fair values of $0.12 million and a share price of $78.11.

During the fiscal quarter ended May 31, 2015, we issued 2,000 shares of common stock to our CEO at a fair value of $89.12 per share.

Employees exercised stock options to purchase 106,825 shares of common stock.

We recorded the following share-based compensation expense in SG&A for the periods covered below:

SHARE-BASED PAYMENT EXPENSE

(in thousands, except per share data)


	Three Months Ended May 31,
	2015		2014
Stock options	$	693	$	704
Directors stock compensation		175		247
Performance based and other stock awards		1,245		418
Share-based payment expense		2,113		1,369
Less income tax benefits		(319)		(127)
Share-based payment expense, net of income tax benefits	$	1,794	$	1,243

Earnings per share impact of share based payment expense:
Basic	$	0.06	$	0.04
Diluted	$	0.06	$	0.04