Accounting for Stock-Based Compensation

9 Months Ended

Feb. 28, 2022

Accounting for Stock-Based Compensation

Accounting for Stock-Based Compensation

Note 7 – Accounting for Stock-Based Compensation

Restricted Stock

In the three-month period ended August 31, 2021, as part of our annual long-term stock incentive compensation, we granted 43,010 shares of performance-based restricted stock and 50,845 shares of time-based restricted stock to eligible employees. The grant date fair value per share for these shares was $37.74 (the closing price on the grant date). We also granted 32,307 shares of time-based restricted stock to members of the Board of Directors with a grant date fair value per share of $42.56 (the closing price on the grant date).

Expense charged to operations for restricted stock during each of the three-month periods ended February 28, 2022 and 2021 was $0.2 million and $1.2 million, respectively, and $2.9 million and $3.9 million during the nine-month periods ended February 28, 2022 and 2021, respectively.

Stock Options

In July 2021, as part of our annual long-term stock incentive compensation, we granted 143,745 stock options to eligible employees at an exercise price of $37.74 and grant date fair value of $13.36. The fair value of stock options was estimated using the Black-Scholes option pricing model with the following assumptions:

Risk-free interest rate	0.8	%
Expected volatility of common stock	41.6	%
Dividend yield	0.8	%
Expected option term in years	5.3

The total intrinsic value of stock options exercised during the nine-month periods ended February 28, 2022 and 2021 was $4.3 million and $0.5 million, respectively. Expense charged to operations for stock options during the three-month periods ended February 28, 2022 and 2021 was $0.8 million and $1.1 million, respectively, and during the nine-month periods ended February 28, 2022 and 2021 was $2.9 million and $2.9 million, respectively.