Share-Based Compensation Plans

3 Months Ended

May 31, 2016

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, 2016, the Company had the following share-based compensation activity:

We granted options to purchase 1,500 shares of common stock to employees. The fair values of these options were estimated using the Black-Scholes option pricing model to estimate fair value of $28.74 for a grant with a term of four years. The following assumptions were used for the grant: expected life of 4.05 years; risk-free interest rate of 1.22 percent; zero dividend yield; and an expected volatility of 33.40 percent.

We issued 1,281 restricted shares to non-employee Board members with a total grant date fair value of $0.12 million and a share price of $95.92.

Employee RSUs for 13,231 shares vested and settled with a total grant date fair value of $1.27 million and a share price of of $95.92.

Employees exercised stock options to purchase 73,635 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,
	2016		2015
Stock options	$	740	$	693
Directors stock compensation		175		175
Performance based and other stock awards		4,751		1,245
Share-based payment expense		5,666		2,113
Less income tax benefits		(1,521)		(319)
Share-based payment expense, net of income tax benefits	$	4,145	$	1,794

Earnings per share impact of share based payment expense:
Basic	$	0.15	$	0.06
Diluted	$	0.15	$	0.06