Accounting for Stock-Based Compensation

9 Months Ended

Feb. 29, 2020

Accounting for Stock-Based Compensation

Accounting for Stock-Based Compensation

Note 5 – Accounting for Stock-Based Compensation

Restricted Stock

In the three-month period ended August 31, 2019, as part of our annual long-term stock incentive compensation, we granted 52,475 shares of performance-based restricted stock and 56,535 shares of time-based restricted stock to eligible employees. The grant date fair value per share for these shares was $37.66 (the closing price on the grant date). In June 2019, we also granted 43,142 shares of time-based restricted stock to members of the Board of Directors with a grant date fair value per share of $30.60.

Expense charged to operations for restricted stock during the three-month periods ended February 29/28, 2020 and 2019 was $2.3 million and $2.7 million, respectively, and $7.2 million and $5.7 million during the nine-month periods ended February 29/28, 2020 and 2019.

Stock Options

In July 2019, as part of our annual long-term stock incentive compensation, we granted 414,460 stock options to eligible employees at an exercise price of $37.66 and weighted average fair value of $10.30. The fair value of stock options was estimated on the date of grant using the Black-Scholes option pricing model with the following assumptions:

Risk-free interest rate	1.9	%
Expected volatility of common stock	32.0	%
Dividend yield	0.8	%
Expected option term in years	4.5

The total intrinsic value of stock options exercised during the nine-month periods ended February 29/28, 2020 and 2019 was $6.2 million and $12.0 million, respectively. Expense charged to operations for stock options during the three-month periods ended

February 29/28, 2020 and 2019 was $0.9 million and $1.0 million, respectively, and during the nine-month periods ended February 29/28, 2020 and 2019 was $3.1 million and $3.2 million, respectively.