Share-based Compensation

The Company has one share-based compensation plan, the 2014 Long Term Incentive Plan (the “Plan”) under which share-based compensation may currently be granted. The purpose of the Plan is to aid in attracting and retaining highly qualified employees and provide a means for such employees to acquire an ownership interest in the Company and better align their interest to the Company's continued long-term success. The Plan permits the Company to grant to its employees, directors and advisors various types of restricted stock unit awards, performance share units, and stock appreciation rights. The maximum number of shares that may be issued under the Plan is 1,500,000 shares. As of November 30, 2015, the Company has approximately 1,396,482 shares available for future issuance under the Plan. In addition, certain share-based awards are outstanding under the Company's Amended and Restated 2005 Long Term Incentive Plan, which was replaced by 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 have either a three year pro-rata or cliff vesting schedule but may vest early in accordance with the Plan’s accelerated vesting provisions.

The activity of our non-vested restricted stock unit awards for the nine month period ended November 30, 2015 is as follows:



	Restricted Stock Units		Weighted Average Grant Date Fair Value
Non-Vested Balance as of February 28, 2015	77,446		$	41.31
Granted	48,113		46.82
Vested	(17,779	)	33.18
Forfeited	(2,137	)	44.15
Non-Vested Balance as of November 30, 2015	105,643		$	45.05

Performance Share Unit Awards

Performance share unit awards are valued at the market price of our common stock on the grant date. These awards have a three year performance cycle and will vest and become payable, if at all, on the third anniversary of the award date. The awards are subject to the Company’s degree of achievement of a target annual average adjusted return on assets during these three year performance cycles. In addition, a multiplier may be applied to the total awards granted which is based on the Company’s total shareholder return during such three year period in comparison to a defined industry peer group as set forth in the agreement. For the nine month period ended November 30, 2015, the Company issued 28,553 performance share unit awards with a weighted average grant date fair value of $46.65.

Stock Appreciation Rights

Stock appreciation rights 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 seven years and vest ratably over a period of three years although may vest early in accordance with the Plan’s accelerated vesting provisions. These awards are valued using the Black-Scholes option pricing model.

A summary of the Company’s stock appreciation rights activity for the nine month period ended November 30, 2015 is as follows:



	SAR’s		Weighted Average Exercise Price
Outstanding as of February 28, 2015	376,982		$	31.27
Granted	—		—
Exercised	(20,799	)	24.57
Forfeited	(4,078	)	44.42
Outstanding as of November 30, 2015	352,105		$	31.52
Exercisable as of November 30, 2015	254,707		$	26.62

The average remaining contractual term for those stock appreciation rights outstanding at November 30, 2015 is 3.38 years, with an aggregate intrinsic value of $21.0 million. The average remaining contractual terms for those stock appreciation rights that are exercisable as of November 30, 2015 is 2.73 years, with an aggregate intrinsic value of $15.2 million.

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. The fair value of the estimated number of shares to be issued under each offering is determined using the Black-Scholes option pricing model. For the nine month period ended November 30, 2015, the Company issued 68,642 shares under the Employee Stock Purchase Plan.

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



Period ended November 30,	2015		2014
	(In thousands)
Compensation expense	$	3,493	$	3,342
Income tax benefits	$	1,223	$	1,170

Unrecognized compensation cost related to restricted stock units, performance share unit awards, stock appreciation rights and the employee stock purchase plan at November 30, 2015 totals $5.9 million.

The Company’s policy is to issue shares required under these plans from the Company’s authorized but unissued shares and treasury shares.