Accounting for Stock-Based Compensation

6 Months Ended

Nov. 30, 2013

Accounting for Stock-Based Compensation

Accounting for Stock-Based Compensation

Note 3 — Accounting for Stock-Based Compensation

Stock Options

In the first six months of fiscal 2014, as part of our annual long-term stock incentive compensation, we granted 1,027,515 stock options to eligible employees at an average exercise price of $25.43 and weighted average fair value of $10.24.  The fair value of stock options is estimated on the date of grant using the Black-Scholes option pricing model with the following assumptions:

	Six Months Ended
	November 30, 2013
Risk-free interest rate	1.4	%
Expected volatility of common stock	49.1	%
Dividend yield	1.2	%
Expected option term in years	5.2

The total intrinsic value of stock options exercised during the six-month periods ended November 30, 2013 and 2012 was $3.7 million and $0.1, respectively.  Expense charged to operations for stock options was $1.0 and $0.9 million during the three months ended November 30, 2013 and 2012, respectively, and $1.5 and $1.6 million during the six months ended November 30, 2013 and 2012, respectively.

Restricted Stock

In the first six months of fiscal 2014, as part of our annual long-term stock incentive compensation, we granted 60,808 shares of performance-based restricted stock and 60,808 shares of time-based restricted stock to eligible employees.  The grant date fair value per share was $25.43.  In June 2013, we also granted 45,000 shares of time-based restricted stock to members of the Board of Directors with a grant date fair value per share of $20.68.  Expense charged to operations for restricted stock was $1.4 and $0.9 million during the three months ended November 30, 2013 and 2012, respectively, and $2.5 and $3.1 million during the six months ended November 30, 2013 and 2012, respectively.