Compensation Related Costs and Share Based Payments

3 Months Ended

Jul. 31, 2025

Share-Based Payment Arrangement [Abstract]

Compensation Related Costs and Share-Based Payments

The 2018 Stock Incentive Plan (the “2018 Plan”) was approved by the Company's shareholders on September 5, 2018. Awards under the 2018 Plan may take the form of stock options, stock appreciation rights, restricted stock, restricted stock units and other equity-based and equity-related awards. Each share issued pursuant to a stock option and each share with respect to which a stock-settled stock appreciation right is exercised (regardless of the number of shares actually delivered) is counted as one share against the 2018 Plan share reserve, and each share issued pursuant to an award of restricted stock or restricted stock units (i.e., a "full-value award") is counted as two shares against the share reserve. Restricted stock is transferred immediately upon grant (and may be subject to a holding period), whereas restricted stock units have a vesting period that must expire, and in some cases performance or market conditions that must be satisfied before the stock is transferred. At July 31, 2025, there were 560,838 shares available for grant under the 2018 Plan.

The 2025 Stock Incentive Plan (the “2025 Plan”) was approved by the Board in July and by the Company’s shareholders on September 3, 2025, at the Company’s annual shareholders meeting (the “2025 Plan Effective Date”). The 2025 Plan replaces the 2018 Plan, under which no new awards are allowed to be granted as of the 2025 Plan Effective Date. Outstanding awards under the 2018 Plan continue to be governed by the terms thereof and the award agreements made pursuant thereto, including any such terms that are intended to survive the termination of the 2018 Plan or the settlement of such awards. Shares subject to awards under the 2018 Plan that expire, are forfeited, cancelled, or settled in cash will be added back to the shares available for issuance under the 2025 Plan. There were 1,650,000 shares available for issuance under the 2025 Plan as of the 2025 Plan Effective Date, pursuant to the same form of equity awards as permitted under the 2018 Plan, described above; provided however, each full-value award issued under the 2025 Plan is now counted as one share against 2025 Plan share reserve, instead of two shares, as described above.

We account for share-based compensation by estimating the grant date fair value of time-based and performance-based restricted stock unit awards using the closing price of our common stock on the applicable grant date, or the date on which performance goals for performance-based units are established, if after the grant date. Forfeitures are recognized as they occur.

The time-based awards most commonly vest ratably over a three-year period commencing on the first anniversary of the grant date. The performance-based awards represent a “target” amount; the final amount earned is based on the satisfaction of certain performance measures over a three-year performance period and will range from 0% to 200% of “target." Additionally, if the Company's relative total shareholder return over the performance period is in the bottom or top quartile of the companies comprising the S&P 500, the performance-based shares included will be adjusted downward by 25%, or upward by 25%, respectively (the "TSR Modifier"). The fair value of the awards with the TSR Modifier is determined using a Monte Carlo simulation as of the date of the grant. For market-based awards, the share-based compensation expense will not be adjusted should the target awards vary from actual awards.

We recognize these amounts as an operating expense in our condensed consolidated statements of income ratably over the requisite service period using the straight-line method, as adjusted for certain retirement provisions, and updated estimates of shares to be issued under performance-based awards. All awards have been granted at no cost to the grantee.

Information concerning the unvested restricted stock units under the 2018 Plan is presented in the following table. At July 31, 2025, there were no stock options, stock appreciation rights or other equity-based awards outstanding.



	Shares	Weighted-Average Grant Date Fair Value per Share
Unvested at April 30, 2025	499,243	$	262
Granted	96,808	461
Vested	(223,589)	232
Forfeited	(5,148)	282
Performance Award Adjustments	13,829	355
Unvested at July 31, 2025	381,143	$	333

Total share-based compensation costs recorded for employees and non-employee directors for the three months ended July 31, 2025 and 2024 were $15,221 and $11,036, respectively, related entirely to restricted stock unit awards. As of July 31, 2025, there was $74,141 of unrecognized compensation costs related to restricted stock units which are expected to be recognized through fiscal 2029, with a weighted average remaining term of 1.5 years. The fair value of restricted stock unit awards vested during the three months ended July 31, 2025 was $111,177 as of the applicable vest date.