Share-based compensation

The Company has one share-based compensation plan, the 2014 Long Term Incentive 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 1,500,000 shares. As of February 28, 2015, the Company had approximately 1,473,148 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, 2015 was as follows:



	Restricted Stock Units		Weighted Average Grant Date Fair Value
Non-Vested Balance as of February 28, 2014	70,352		$	34.95
Granted	48,616		42.89
Vested	(28,647	)	28.57
Forfeited	(12,875	)	40.87
Non-Vested Balance as of February 28, 2015	77,446		$	41.31

The total fair value of restricted stock units vested during fiscal years 2015, 2014, and 2013 was $0.8 million, $1.9 million and $0.5 million, respectively. For fiscal years ended 2015, 2014 and 2013, there were 77,446, 70,352 and 109,430, respectively, of non vested restricted stock units outstanding with weighted average grant date fair values of $41.31, $34.95 and $20.73, 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 3 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, were as follows:



	2015				2014				2013
	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	396,174		$	26.64	439,863		$	19.12	573,000		$	15.46
Granted	126,532		43.92		116,032		45.20		118,107		25.77
Exercised	(98,942	)	22.79		(159,721	)	19.19		(251,240	)	13.84
Forfeited	(46,782	)	44.14		—		—		(4	)	2.11
Outstanding at end of year	376,982		$	31.27	396,174		$	26.64	439,863		$	19.12
Exercisable at end of year	204,107		$	21.55	153,343		$	15.32	115,395		$	13.14
Weighted average fair value for the fiscal year indicated of options and SARs granted during such year			$	16.94			$	13.68			$	8.81

The average remaining contractual term for those options and stock appreciation rights outstanding as of February 28, 2015 was 4.13 years, with an aggregate intrinsic value of $17.1 million. The average remaining contractual terms for those options and stock appreciation rights that are exercisable as of February 28, 2014 was 2.82 years, with an aggregate intrinsic value of $9.3 million. As of February 28, 2015, the intrinsic value of options/stock appreciation rights exercised was $4.5 million.

The following table summarizes additional information about stock options and stock appreciation rights outstanding at February 28, 2015.



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	48,510	1.00	$	9.06	48,510	$	9.06
$15.84	54,546	2.00	$	15.84	54,546	$	15.84
$20.91	40,950	3.00	$	20.91	40,950	$	20.91
$25.67	38,932	4.00	$	25.67	24,082	$	25.67
$39.65	950	5.00	$	39.65	—	$	39.65
$43.92	112,411	6.00	$	43.92	8,089	$	43.92
$45.26	40,000	6.00	$	45.26	10,000	$	45.26
$45.36	39,924	5.00	$	45.36	17,677	$	45.36
$46.43	759	5.00	$	46.43	253	$	46.43
$ 9.06 - $46.43	376,982	4.13	$	31.27	204,107	$	21.55

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



	2015	2014	2013
Expected term in years	4.5	4.5	4.5
Expected dividend yield	1.20% – 1.32%	1.21% - 1.49%	1.76% – 1.95%
Expected price volatility	35.39% – 40.00%	36.34% – 53.00%	45.00% – 47.83%
Risk-free interest rate	2.32 – 2.73	0.75 - 2.98	0.59 – 0.89

Directors Grants

During fiscal 2013 the Company granted each of its independent directors 1,000 shares of the Company’s common stock which subsequently split 2 for 1. In fiscal 2014 and 2015, each of its independent directors were granted 2,000 shares of the Company’s common stock. These common stock grants were valued at $44.90, $36.70 and $32.51 per share for fiscal 2015, 2014 and 2013, respectively, which was the market price of our common stock on the grant date.

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 (the "offering period"). 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.

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



Year Ended February 28,	2015		2014		2013
	(In thousands)
Compensation Expense	$	4,080	$	3,703	$	3,175
Income tax benefits	$	1,428	$	1,296	$	1,111

Unrecognized compensation cost related to all the above at February 28, 2015 totaled $4.1 million. These costs are expected to be recognized over a weighted period of 2.66 years.

The Company did not receive cash from the exercise of stock options for the years ended February 28, 2015 and 2014. Cash received from the exercise of stock options for the year ended February 28, 2013 was insignificant. The actual tax benefit realized for tax deductions from options exercised each of these years totaled $0.3 million, $1.6 million and $1.3 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.