Share-Based Compensation Plans

6 Months Ended

Aug. 31, 2015

Note 15 – Share-Based Compensation Plans

We have share-based awards outstanding under several share-based compensation plans. During the fiscal quarter and year-to-date periods ended August 31, 2015, the Company had the following share-based compensation activity:

We granted options to purchase 17,000 and 162,500 shares of common stock, respectively, to certain officers and 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 $30.06 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 0.86 to 1.38 percent; zero dividend yield; and expected volatilities ranging from 37.26 to 39.70 percent.

We issued 1,386 and 2,961 restricted shares, respectively, to non-employee Board members with total grant date fair values of $0.13 and $0.25 million, respectively, and average share prices of $88.45 and $82.95, respectively.

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 38,629 and 145,454 shares of common stock, respectively.

Employees purchased 12,155 shares of common stock for $0.79 million through our employee stock purchase plan.

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 August 31,				Six Months Ended August 31,
	2015		2014		2015		2014
Stock options	$	644	$	910	$	1,337	$	1,614
Directors stock compensation		175		219		350		466
Performance based and other stock awards		887		687		2,132		1,105
Employee stock purchase plan		223		167		223		167
Share-based payment expense		1,929		1,983		4,042		3,352
Less income tax benefits		(274)		(246)		(593)		(373)
Share-based payment expense, net of income tax benefits	$	1,655	$	1,737	$	3,449	$	2,979

Earnings per share impact of share based payment expense:
Basic	$	0.06	$	0.06	$	0.12	$	0.10
Diluted	$	0.06	$	0.06	$	0.12	$	0.10