Stock Based Compensation

Stock-based employee compensation expense is recognized using the fair-value method for all awards. The Company determines the fair value of these awards using the Black-Scholes option pricing model. Options are granted whereby the option exercise price is equivalent to the market price of the Company's common stock at the date of grant. There were 809,550 stock options awarded during the three months ended October 31, 2017. The weighted average fair value for options granted during the three months ended October 31, 2017 was $9.18. There were no stock options awarded during the three months ended October 31, 2016 because the Company moved its annual stock option grant to the first quarter in the current fiscal year from its historical practice of providing such grants during the second quarter in the fiscal year. For the three months ended October 31, 2017, the Company recorded pretax stock-based compensation expense associated with stock options of $3.8 million and recorded $1.2 million of related tax benefits. For the three months ended October 31, 2016, the Company recorded pretax stock-based compensation expense associated with stock options of $1.1 million and recorded $0.3 million of related tax benefits.

The following table summarizes stock option activity during the three months ended October 31, 2017:



	Options Outstanding		Weighted Average Exercise Price
Outstanding as of July 31, 2017	6,685,551		$	32.60
Granted	809,550		$	45.43
Exercised	(181,826	)	$	23.37
Canceled	(8,330	)	$	35.62
Outstanding as of October 31, 2017	7,304,945		$	34.25

The total intrinsic value of options exercised during the three months ended October 31, 2017 and 2016 was $4.2 million and $3.4 million, respectively.

The following table summarizes information concerning outstanding and exercisable options as of October 31, 2017:



Range of Exercise Prices	Number Outstanding	Weighted Average Remaining Contractual Life (Years)	Weighted Average Exercise Price of Outstanding Options		Number Exercisable	Weighted Average Exercise Price of Exercisable Options
$ 0.00 to $22.69	1,129,408	1.71	$	19.67	1,129,408	$	19.67
$22.70 to $28.69	906,002	7.87	$	27.90	315,426	$	27.58
$28.70 to $34.69	1,444,975	4.15	$	31.61	1,427,244	$	31.61
$34.70 to $40.69	1,437,465	5.89	$	37.03	1,153,628	$	36.66
$40.70 and above	2,387,095	8.49	$	43.47	697,995	$	42.25
	7,304,945	6.00	$	34.25	4,723,701	$	31.29

As of October 31, 2017, the aggregate intrinsic value of options outstanding and exercisable was $94.7 million and $75.2 million, respectively.

As of October 31, 2017, there was $10.9 million of total unrecognized compensation expense related to non-vested stock options granted under the 2010 Master Stock Incentive Plan. This unvested expense is expected to be recognized during fiscal years 2018, 2019, 2020 and 2021.