Accounting for Stock-Based Compensation

6 Months Ended

Jan. 31, 2016

Stock-based compensation expense is recognized using the fair-value method for all awards. The Company determines the fair value of its option awards using the Black-Scholes option pricing model. Options granted are priced at the fair market value of the Company's stock on the date of grant. There were 941,350 of stock options awarded during the six months ended January 31, 2016. The weighted average fair value for options granted during the six months ended January 31, 2016 and 2015 was $7.08 and $9.95 per share, respectively. For the three and six months ended January 31, 2016, the Company recorded pre-tax stock-based compensation expense associated with stock options of $3.3 million and $4.4 million, respectively, and recorded $1.1 million and $1.4 million, respectively, of related tax benefits. For the three and six months ended January 31, 2015, the Company recorded pre-tax stock-based compensation expense associated with stock options of $5.6 million and $6.9 million, respectively, and recorded $1.9 million and $2.3 million, respectively, of related tax benefits.

The following table summarizes stock option activity during the six months ended January 31, 2016:



	Options Outstanding		Weighted Average Exercise Price
Outstanding at July 31, 2015	7,191,442		$	29.38
Granted	941,350		$	28.07
Exercised	(361,571	)	$	17.35
Canceled	(153,525	)	$	37.82
Outstanding at January 31, 2016	7,617,696		$	29.62

The total intrinsic value of options exercised during the six months ended January 31, 2016 and 2015 was $4.5 million and $13.4 million, respectively.

The following table summarizes information concerning outstanding and exercisable options as of January 31, 2016:



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 $17.69	1,034,947	1.91	$	17.24	1,034,947	$	17.24
$17.70 to $23.69	1,420,040	3.02	$	21.47	1,420,040	$	21.47
$23.70 to $29.69	1,740,118	7.56	$	28.55	801,768	$	29.12
$29.70 to $35.69	1,662,818	6.20	$	34.22	1,658,051	$	34.22
$35.70 and above	1,759,773	8.30	$	40.20	859,292	$	40.81
	7,617,696	5.82	$	29.62	5,774,098	$	28.31

At January 31, 2016, the aggregate intrinsic value of options outstanding and exercisable was $21.0 million and $20.9 million, respectively.

As of January 31, 2016, there was $9.2 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 2016, 2017, 2018 and 2019.