XML 68 R13.htm IDEA: XBRL DOCUMENT v3.19.3
Stock-based Compensation
 9 Months Ended
Aug. 31, 2019
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]  
Stock-Based Compensation
STOCK-BASED COMPENSATION

We have three types of stock-based compensation awards: restricted stock units (RSUs), stock options and company stock awarded as part of our long-term performance plan (LTPP). The following table sets forth the stock-based compensation expense recorded in selling, general and administrative (SG&A) expense (in millions):
 
Three months ended August 31,
 
Nine months ended August 31,
 
2019
 
2018
 
2019
 
2018
Stock-based compensation expense
$
7.8

 
$
5.5

 
$
30.6

 
$
21.6


Our 2019 annual grant of stock options and RSUs occurred in the second quarter, similar to the 2018 annual grant. The weighted-average grant-date fair value of each stock option granted in 2019 was $27.51 and in 2018 was $20.30 as calculated under a lattice pricing model. Substantially all of the stock options and RSUs granted in 2019 vest ratably over a three-year period or, if earlier, upon the retirement eligibility date of the holder. The fair values of stock option grants in the stated periods were computed using the following range of assumptions for our various stock compensation plans:
 
2019
 
2018
Risk-free interest rates
2.2 - 2.5%
 
1.7 - 2.9%
Dividend yield
1.5%
 
2.0%
Expected volatility
17.4%
 
18.4%
Expected lives (in years)
7.5
 
7.6

The following is a summary of our stock option activity for the nine months ended August 31, 2019 and 2018:
 
2019
 
2018
(shares in millions)
Number
of
Shares
 
Weighted-
Average
Exercise
Price
 
Number
of
Shares
 
Weighted-
Average
Exercise
Price
Outstanding at beginning of period
3.6

 
$
82.60

 
4.8

 
$
71.91

Granted
0.3

 
147.39

 
0.4

 
105.95

Exercised
(1.2
)
 
70.78

 
(0.9
)
 
51.82

Outstanding at end of the period
2.7

 
$
95.50

 
4.3

 
$
79.31

Exercisable at end of the period
2.0

 
$
86.08

 
3.4

 
$
73.52

As of August 31, 2019, the intrinsic value (the difference between the exercise price and the market price) for all options outstanding was $181.2 million and for options currently exercisable was $153.5 million. The total intrinsic value of all options exercised during the nine months ended August 31, 2019 and 2018 was $102.8 million and $56.9 million, respectively.
The following is a summary of our RSU activity for the nine months ended August 31, 2019 and 2018:
 
2019
 
2018
(shares in thousands)
Number
of
Shares
 
Weighted-
Average
Grant-Date
Fair Value
 
Number
of
Shares
 
Weighted-
Average
Grant-Date
Fair Value
Outstanding at beginning of period
423

 
$
103.05

 
267

 
$
86.47

Granted
129

 
143.15

 
201

 
101.17

Vested
(134
)
 
96.74

 
(117
)
 
88.35

Forfeited
(9
)
 
112.10

 
(6
)
 
95.68

Outstanding at end of period
409

 
$
117.51

 
345

 
$
94.21


The following is a summary of our LTPP activity for the nine months ended August 31, 2019 and 2018:
 
2019
 
2018
(shares in thousands)
Number
of
Shares
 
Weighted-
Average
Grant-Date
Fair Value
 
Number
of
Shares
 
Weighted-
Average
Grant-Date
Fair Value
Outstanding at beginning of period
218

 
$
83.55

 
220

 
$
84.31

Granted
102

 
150.51

 
86

 
101.90

Vested
(57
)
 
86.40

 
(59
)
 
74.02

Forfeited
—

 
—

 
(2
)
 
96.74

Outstanding at end of period
263

 
$
117.14

 
245

 
$
92.87