The Company’s current share-based compensation plans, approved by the stockholders of the Company, provides for awards of stock options, restricted shares, restricted stock units (“RSUs”), stock appreciation rights, performance shares, and performance stock units (“PSUs”) to employees and non-employee directors of the Company. The Company measures and recognizes compensation expense for all share-based payment awards made to employees and directors based on estimated fair values. Share-based compensation expense was $1.6 million and $1.3 million for the three months ended November 30, 2022 and 2021, respectively.

The following table illustrates the type and fair value of share-based compensation awards granted during the three months ended November 30, 2022 and 2021:


	Three months ended
	November 30, 2022				November 30, 2021
	Number of units granted		Weighted average grant-date fair value per award		Number of units granted		Weighted average grant-date fair value per award
Stock options		21,743	$	55.53		21,137	$	41.80
RSUs		18,502	$	152.36		20,099	$	141.99
PSUs		14,496	$	173.17		12,122	$	147.74

The RSUs granted during the three months ended November 30, 2022 and 2021 included 2,112 and 2,248, respectively, that will be settled in cash. The weighted average stock price on the date of grant was $156.16 and $145.93 per award for the three months ended November 30, 2022 and 2021, respectively. Share issuances are presented net of share repurchases

to cover payroll taxes of $2.5 million and $1.2 million for the three months ended November 30, 2022 and 2021, respectively.

The following table provides the assumptions used in determining the fair value of the stock options awarded during the three months ended November 30, 2022 and 2021, respectively:


	Three months ended November 30,
	2022			2021
Weighted-average dividend yield		0.9	%		0.9	%
Weighted-average volatility		35.7	%		33.8	%
Risk-free interest rate		4.4	%		1.2	%
Weighted-average expected life (years)		5			5

The PSUs granted during fiscal 2023 include performance goals based on a return on invested capital ("ROIC") and total shareholder return ("TSR") relative to the Company's peers during the performance period. The awards actually earned will range from zero to two hundred percent of the targeted number of PSUs and will be paid in shares of common stock. Shares earned will be distributed upon vesting on the first day of November following the end of the three-year performance period. For the ROIC portion of the award, the Company is accruing compensation expense based on the estimated number of shares expected to be issued utilizing the most current information available to the Company at the date of the consolidated financial statements. For the TSR portion of the award, compensation expense is recorded ratably over the three-year term of the award based on the estimated grant date fair value.

The fair value of the TSR portion of the awards granted during the three months ended November 30, 2022 and 2021 was estimated at the grant date using a Monte Carlo simulation model which included the following assumptions:


	Three months ended November 30,
	2022			2021
Expected term (years)		3			3
Risk-free interest rate		4.5	%		0.7	%
Volatility		38.6	%		39.1	%
Dividend yield		0.9	%		0.9	%