Accounting for Stock-Based Compensation

9 Months Ended

Feb. 28, 2025

Accounting for Stock-Based Compensation

Accounting for Stock-Based Compensation

Note 6 – Accounting for Stock-Based Compensation

Restricted Stock

In the three-month period ended August 31, 2024, as part of our annual long-term stock incentive compensation, we granted 124,200 shares of performance-based restricted stock and 72,955 shares of time-based restricted stock to eligible employees. The grant date fair value per share for these shares was $67.02 (the closing price per share of our common stock on the grant date). We also granted 19,010 shares of time-based restricted stock to members of the Board of Directors with a grant date fair value per share of $70.99 (the closing price per share of our common stock on the grant date).

Expenses charged to operations for restricted stock during the three-month periods ended February 28/29, 2025 and 2024 was $4.8 million and $2.9 million, respectively, and during the nine-month periods ended February 28/29, 2025 and 2024 was $13.0 million and $9.2 million, respectively.

Stock Options

In the three-month period ended August 31, 2024, as part of our annual long-term stock incentive compensation, we granted 157,310 stock options to eligible employees at an exercise price per share of $67.02 and grant date fair value per share of $25.51. The fair value of stock options was estimated using the Black-Scholes option pricing model with the following assumptions:

Risk-free interest rate	4.2	%
Expected volatility of common stock	36.0	%
Dividend yield	0.0	%
Expected option term in years	4.9

The total intrinsic value of stock options exercised during the nine-month periods ended February 28/29, 2025 and 2024 was $7.7 million and $13.9 million, respectively. Expenses charged to operations for stock options during the three-month periods ended February 28/29, 2025 and 2024 was $0.8 million and $0.7 million, respectively, and during the nine-month periods ended February 28/29, 2025 and 2024 was $2.6 million and $2.3 million, respectively.