Equity

3 Months Ended

Aug. 31, 2025

Equity

Equity

7. Equity

Stock - Based Compensation

In July 2025, as part of our annual long-term stock incentive compensation, we granted 85,605 shares of performance-based restricted stock and 64,795 shares of time-based restricted stock to eligible employees. The grant date fair value per share for these shares was $79.45 (the closing price per share of our common stock on the grant date). We also granted 24,178 shares of time-based restricted stock to members of the Board of Directors with a grant date fair value per share of $61.41 (the closing price per share of our common stock on the grant date).

Expense charged to operations for restricted stock during each of the three-month periods ended August 31, 2025 and 2024 was $4.2 million and $4.1 million, respectively.

In July 2025, as part of our annual long-term stock incentive compensation, we granted 154,185 stock options to eligible employees at an exercise price per share of $79.45 and grant date fair value per share of $28.71. The fair value of stock options was estimated using the Black-Scholes option pricing model with the following assumptions:

Risk-free interest rate	3.9	%
Expected volatility of common stock	34.1	%
Dividend yield	0.0	%
Expected option term in years	4.8

The total intrinsic value of stock options exercised during the three-month periods ended August 31, 2025 and 2024 was $4.6 million and $0.2 million, respectively. Expense charged to operations for stock options during the three-month periods ended August 31, 2025 and 2024 was $1.1 million and $0.9 million, respectively.

Stock-based compensation expense is recognized on a straight-line basis over the requisite service period based on the equity’s grant date fair value. For participants who are or become retirement-eligible during the service period, stock-based compensation expense is recognized over the period ending on the date the participant becomes retirement-eligible.

Earnings per Share

The potential dilutive effect of 64,000 shares relating to stock options was excluded from the computation of weighted average common shares outstanding – diluted for the three-month period ended August 31, 2025 as the shares would have been anti-dilutive. At August 31, 2024, no stock options were determined to be anti-dilutive.