Stock-based compensation is accounted for in accordance with ASC 718, “Compensation – Stock Compensation,” which requires companies to estimate the fair value of share-based awards on the date of grant using an option-pricing model.

The Company's stock-based compensation plans include the Long-Term Incentive Plan, which is comprised of the 2020 Long-Term Incentive Plan (the “2020 LTIP”) and the 2006 Amended and Restated Long-Term Incentive Plan (the “2006 LTIP”); the 2005 Outside Directors Equity Award Plan (the “2005 Directors Plan”); and the 2001 Management Equity Incentive and Compensation Plan (the “2001 Plan”).

For the Company's stock-based compensation plans, no stock options were granted in 2020, 2019 or 2018 and no shares were forfeited in 2020, 2019 or 2018.

The total stock compensation expense (income) recorded under the plans were $(1.2) million, $12.7 million and $6.5 million for periods ended October 31, 2020, 2019 and 2018 respectively.

The Long-Term Incentive Plan is intended to focus management on the key measures that drive superior performance over the longer term. The Long-Term Incentive Plan provides key employees with incentive compensation based upon consecutive and overlapping three-year performance periods that commence at the start of every year. For each three-year performance period, the performance goals are based on performance criteria as determined by the Special Subcommittee of the Compensation Committee of the Company’s Board of Directors (the “Special Subcommittee”).

For each of the three-year performance periods ending in fiscal 2019, 2020 and 2021, awards were or will be made under the 2006 LTIP, with the performance goals based on targeted levels of adjusted earnings before interest, taxes, depreciation, depletion and amortization. For each of these periods, awards are to be paid 50% in cash and 50% in restricted stock.

For the three-year performance periods ending after fiscal 2021, awards will be made under the 2020 LTIP, and participants may be granted restricted stock units (“RSUs”) or performance stock units (“PSUs”) or a combination thereof.

The Company grants RSUs based on a three-year vesting period on the basis of service only. The RSUs are an equity-classified plan measured at fair value on the grant date recognized ratably over the service period. Dividend-equivalent rights may be granted in connection with an RSU award and are recognized in conjunction with the Company's dividend issuance and settled upon vesting of the award.

The Company granted 147,325 RSUs on February 25, 2020, for the service period commencing on November 1, 2019 and ending October 31, 2022. Upon vesting, the RSUs are to be awarded in shares of Class A Common Stock. The weighted average fair value of the RSUs granted on that date was $37.42.

The Company grants PSUs for a three-year performance period based upon service, performance criteria and market conditions. The performance criteria are based on targeted levels of earnings before interest, taxes, depreciation, depletion and amortization and total shareholder return as determined by the Special Subcommittee. The PSUs are a liability-classified plan wherein the fair value of the PSUs awarded is determined at each reporting period using a Monte Carlo simulation. A Monte Carlo

simulation uses assumptions including the risk-free interest rate, expected volatility of the Company’s stock price and expected life of the awards to determine a fair value of the market condition throughout the vesting period.

The Company issued 258,519 PSUs on February 25, 2020, for the performance period commencing on November 1, 2019 and ending October 31, 2022. If earned, the PSUs are to be awarded in shares of Class A Common Stock. The weighted average fair value of the PSUs granted on that date was $35.58.


			Performance Stock Units
Performance period			11/1/2019 - 10/31/2022
Valuation date stock price			$40.59
Risk-free rate			0.10% - 1.59%
Estimated volatility			46.4%

Under the 2006 LTIP, the Company granted 153,275 shares of restricted Class A Common Stock with a grant date fair value of $34.50 for 2020 and 291,520 shares of restricted Class A Common Stock with a grant date fair value of $39.83 for 2019. All restricted stock awards under the 2006 LTIP are fully vested at the date of award.

The total stock compensation expense (income) recorded under the Long-Term Incentive Plan was $(2.4) million, $11.6 million and $5.3 million for the periods ended October 31, 2020, 2019 and 2018, respectively.

Under the 2005 Directors Plan, the Company granted 27,768 shares of restricted Class A Common Stock with a grant date fair value of $38.89 in 2020 and 25,144 shares of restricted Class A Common Stock with a grant date fair value of $42.95 in 2019. The total expense recorded under the 2005 Directors Plan was $1.1 million, $1.1 million and $1.2 million for the periods ended October 31, 2020, 2019, and 2018, respectively. All restricted stock awards under the 2005 Directors Plan are fully vested at the date of award.

During 2019, the Company awarded an officer, as part of the terms of the officer's initial employment arrangement, 9,000 shares of Class A Common Stock under the 2001 Plan. These shares were issued subject to vesting and post-vesting restrictions on the sale or transfer until November 5, 2023. These shares vest in equal installments of 3,000 on November 5, 2019, 2020 and 2021. Share-based compensation expense was $0.1 million and $0.1 million, for the period ended October 31, 2020 and 2019.