Stock compensation

The Company has one share-based compensation plan (the “Plan”). The purpose of the Plan is to promote the growth and prosperity of the Company by permitting the Company to grant to its employees, directors and advisors various types of restricted stock unit awards, stock appreciation rights and options to purchase common stock of the Company. The maximum number of shares that may be issued under the Plan is 5,000,000 shares. As of February 28, 2014, the Company had approximately 588,491 shares reserved for future issuance under the Plan.

Restricted Stock Unit Awards

Restricted stock unit awards are valued at the market price of our common stock on the grant date. These awards generally have a three year cliff vesting schedule but may vest early in accordance with the Plan’s accelerated vesting provisions.

Activity in our non-vested restricted stock unit awards for the year ended February 28, 2014 was as follows:



	Restricted Stock Units		Weighted Average Grant Date Fair Value
Non-Vested Balance as of February 28, 2013	109,430		$	20.73
Granted	49,843		45.04
Vested	(88,921	)	20.01
Forfeited	—		—
Non-Vested Balance as of February 28, 2014	70,352		$	45.96

The total fair value of restricted stock units vested during fiscal years 2014, 2013, and 2012 was $1.9 million, $0.5 million and $0.1 million, respectively. For fiscal years ended 2014, 2013 and 2012, there were 70,352, 109,430 and 122,450, respectively, of non vested restricted stock units outstanding with weighted average grant date fair values of $45.96, $20.73 and $13.89, respectively.

Stock Appreciation Rights and Option Awards

Stock appreciation rights and option awards are granted with an exercise price equal to the market value of our common stock on the date of grant. These awards generally have a contractual term of 7 years and vest ratably over a period of three years although some may vest immediately on issuance. These awards are valued using the Black-Scholes option pricing model.

A summary of the Company’s stock appreciation rights and option awards activity for the three years ended February 28, or 29, as applicable, were as follows:



	2014				2013				2012
	Options/ SAR’s		Weighted Average Exercise Price		Options/ SAR’s		Weighted Average Exercise Price		Options/ SAR’s		Weighted Average Exercise Price
Outstanding at beginning of year	439,863		$	19.12	573,000		$	15.46	831,518		$	14.14
Granted	116,032		45.20		118,107		25.77		193,132		20.91
Exercised	(159,721	)	19.19		(251,240	)	13.84		(413,814	)	15.10
Forfeited	—		—		(4	)	2.11		(37,836	)	19.88
Outstanding at end of year	396,174		$	26.64	439,863		$	19.12	573,000		$	15.46
Exercisable at end of year	153,343		$	15.32	115,395		$	13.14	123,090		$	12.11
Weighted average fair value for the fiscal year indicated of options and SARs granted during such year			$	13.68			$	8.81			$	7.74

The average remaining contractual term for those options/stock appreciation rights outstanding at the end of fiscal 2014 was 4.38 years, with an aggregate intrinsic value of $17.6 million. The average remaining contractual terms for those options/ stock appreciation rights that were exercisable as of the end of fiscal 2014 was 3.01 years, with an aggregate intrinsic value of $6.8 million. During fiscal 2014, the intrinsic value of options/stock appreciation rights exercised was $3.6 million.

The following table summarizes additional information about stock options and stock appreciation rights outstanding at February 28, 2014.



Range of Exercise Prices	Total Options/ SAR’s	Average Remaining Life	Weighted Average Exercise Price		Options / SAR’s Currently Exercisable	Weighted Average Exercise Price
$9.06	51,832	2.00	$	9.06	51,832	$	9.06
$15.84	60,259	3.00	$	15.84	60,259	$	15.84
$20.91	83,874	4.00	$	20.91	29,004	$	20.91
$25.67	84,329	5.00	$	25.67	11,584	$	25.67
$31.76	1,993	5.00	$	31.76	664	$	31.76
$45.36	69,477	6.00	$	45.36	—	$	—
$45.26	40,000	6.00	$	45.26	—	$	—
$42.08	2,226	6.00	$	42.08	—	$	—
$46.43	759	6.00	$	46.43	—	$	—
$39.65	1,425	6.00	$	39.65	—	$	—
$ 9.06 - $45.36	396,174	4.38	$	26.64	153,343	$	15.32

Employee Stock Purchase Plan

The Company also has an employee stock purchase plan which allows employees of the Company to purchase common stock of the Company through accumulated payroll deductions. Offerings under this plan have a duration of 24 months. On the first day of an offering period (the enrollment date) the participant is granted the option to purchase shares on each exercise date at the lower of 85% of the market value of a share of our common stock on the enrollment date or the exercise date. The participant’s right to purchase common stock under the plan is restricted to no more than $25,000 per calendar year and the participant may not purchase more than 5,000 shares during any offering period. Participants may terminate their interest in a given offering or a given exercise period by withdrawing all of their accumulated payroll deductions at any time prior to the end of the offering period. The fair value of the estimated number of shares to be issued under each offering is determined using the Black-Scholes option pricing model. Common shares estimated to be issued under each offering for fiscal 2014, 2013 and 2012 was 47,982, 76,047 and 31,106 shares, respectively.

Assumptions used in the Black-Scholes option pricing model for the past three fiscal years were as follows for all stock appreciation rights plans and employee stock purchase plans:



	2014	2013	2012
Expected life in years	2 – 4.5	2 – 5	2 – 5
Expected dividend yield	1.21% – 1.33%	1.73% - 2.00%	2.27% – 2.39%
Expected price volatility	36.34% – 41.60%	45.00% - 47.50%	46.86% – 48.85%
Risk-free interest rate	0.42 – 1.46	0.29 - 0.59	3.39 – 3.51

Directors Grants

During fiscal 2012 and fiscal 2013 the Company granted each of its seven independent directors 1,000 shares of the Company’s common stock which subsequently split 2 for 1. In fiscal 2014, each of its seven independent director were granted 2,000 shares of the Company’s common stock. These common stock grants were valued at $36.70, $32.51 and $25.42 per share for fiscal 2014, 2013 and 2012, respectively, which was the market price of our common stock on the grant date.

Share-based compensation expense and related income tax benefits related to all the plans listed above were as follows:



Year Ended February 28 or 29,	2014		2013		2012
Compensation Expense	$	3,703,407	$	3,175,050	$	2,927,917
Income tax benefits	$	1,296,193	$	1,111,268	$	1,024,771

Unrecognized compensation cost related to all the above at February 28, 2014 totaled $2.9 million. These costs are expected to be recognized over a weighted period of 2.49 years.

Cash received from stock options exercised for the years ended February 28 or 29, 2014, 2013 and 2012 was $0, $0, and $0, respectively. The actual tax benefit realized for tax deductions from options exercised each of these years totaled $1.6 million, $1.3 and $0.2 million, respectively.

The Company’s policy is to issue shares required under these plans from the Company’s treasury shares or from the Company’s authorized but unissued shares. The Company has no formal or informal plan to repurchase shares on the open market to satisfy these requirements.