STOCK-BASED COMPENSATION

9 Months Ended

Oct. 31, 2024

STOCK-BASED COMPENSATION

STOCK-BASED COMPENSATION

NOTE 10 – STOCK-BASED COMPENSATION

Expense amounts related to stock awards for the three and nine months ended October 31, 2024 were $1.2 million and $3.4 million, respectively, and they were $1.2 million and $3.4 million for the three and nine months ended October 31, 2023, respectively. At October 31, 2024, there was $5.9 million in unrecognized compensation costs related to outstanding stock awards that the Company expects to recognize over the next three years.

Stock Options

A summary of stock option activity for the nine months ended October 31, 2024 is presented below (shares in thousands):

				Weighted-	Weighted-
		Weighted-		Average	Average
		Average Exercise		Remaining	Grant-Date
		Price		Contractual	Fair Value
	Shares	Per Share		Term (years)	Per Share
Outstanding, February 1, 2024	1,365	$	44.95	4.67	$	10.43
Granted	6	$	61.22
Exercised	(800)	$	44.59
Forfeited	(13)	$	46.72
Outstanding, October 31, 2024	558	$	45.61	4.70	$	10.26
Exercisable, October 31, 2024	500	$	46.22	4.30	$	10.51
Vested or expected to vest, October 31, 2024	558	$	45.61	4.70	$	10.26

The changes in the number of non-vested options to purchase shares of common stock for the nine months ended October 31, 2024 is presented below (shares in thousands):

		Weighted-
		Average
		Grant-Date
		Fair Value
	Shares	Per Share
Non-vested, February 1, 2024	92	$	7.85
Granted	6	$	13.89
Vested	(33)	$	8.44
Forfeited	(7)	$	7.67
Non-vested, October 31, 2024	58	$	8.15

The total intrinsic value amounts related to the stock options exercised during the nine months ended October 31, 2024 and 2023 were $24.1 million and $1.5 million, respectively. As of October 31, 2024, the aggregate intrinsic values of the underlying common stock outstanding and exercisable stock options that were “in-the-money” were $48.2 million and $42.9 million, respectively.

Restricted Stock Units

The Company’s stock awards include total stock return performance-based restricted stock units (“PRSUs”), earnings per share performance-based restricted stock units (“EPRSUs”), renewable energy performance-based restricted stock units (“RRSUs”), and time-based restricted stock units (“TRSUs”). During the nine months ended October 31, 2024, the Company awarded PRSUs covering a target of 5,000 shares of common stock, EPRSUs covering a target of 10,000 shares of common stock, RRSUs covering a target of 5,000 shares of common stock and TRSUs covering 42,050 shares of common stock. The Company issued 3,988 shares of common stock based on the amount of cash dividends deemed paid on shares that were earned pursuant to the awards that were settled during the period. The number of shares of common stock to be issued under certain awards may exceed the number of target shares if certain performance goals are exceeded.

The changes in the maximum number of shares of common stock issuable pursuant to outstanding restricted stock units for the nine months ended October 31, 2024, are presented below (shares in thousands):

		Weighted-
		Average
		Grant-Date
		Fair Value
	Shares	Per Share
Outstanding, February 1, 2024	348	$	30.21
Granted	81	$	43.82
Issued	(70)	$	42.58
Forfeited	(64)	$	27.04
Outstanding, October 31, 2024	295	$	31.69

Shares Withheld and Treasury Stock

For the nine months ended October 31, 2024, the Company accepted 532,860 shares of common stock at the average price per share of $73.92 for the exercise price and/or tax withholding in connection with stock option exercises and other share-based award settlements. For the nine months ended October 31, 2023, the Company accepted 29,058 shares of common stock at the average price per share of $47.16 for the exercise price and/or tax withholding in connection with stock option exercises and other share-based award settlements. For the nine months ended October 31, 2024 and 2023, the Company used 337,884 shares and 132,656 shares of treasury stock, respectively, to settle stock option exercises and other share-based awards.