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, performance share units, stock options, and stock appreciation rights 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 November 30, 2018, the Company had approximately 1,248,775 shares available 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. Awards generally vest ratably over a period of three years but these awards may vest earlier in accordance with the Plan’s accelerated vesting provisions.

A summary of the Company’s non-vested restricted stock unit award activity for the nine month period ended November 30, 2018 is as follows:



	Restricted Stock Units		Weighted Average Grant Date Fair Value
Non-vested balance as of February 28, 2018	109,777		$	56.62
Granted	84,023		42.01
Vested	(37,670	)	54.63
Forfeited	(7,290	)	55.27
Non-vested balance as of November 30, 2018	148,840		$	48.94

Performance Share Unit Awards

The Company also grants performance share units ("PSU") awards to certain employees. These PSU 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 PSU awards are subject to the Company’s degree of achievement of a target annual average adjusted return on assets during these three-year periods and, in certain circumstances, vesting is based on the relative performance of a predetermined group of peer companies. In addition, these PSU awards may have vesting conditions or certain vesting multipliers, which are based on the Company’s total shareholder return during such three-year period in comparison to a defined specific industry peer group. The Company estimates the fair value of PSU awards with performance and service conditions using the value of the Company's common stock on the date of grant. The Company estimates the fair value of PSU awards with market conditions using a Monte Carlo simulation model on the date of grant.

A summary of the Company’ non-vested performance share unit award activity for the nine month period ended November 30, 2018 is as follows:



	Performance Stock Units		Weighted Average Grant Date Fair Value
Non-vested balance as of February 28, 2018	70,030		$	54.59
Granted	46,183		42.00
Vested	(3,378	)	46.65
Forfeited	(29,710	)	49.51
Non-vested balance as of November 30, 2018	83,125		$	49.74

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 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 activity for the nine month period ended November 30, 2018 is as follows:



	SARs		Weighted Average Exercise Price
Outstanding as of February 28, 2018	148,513		$	43.29
Granted	—		—
Exercised	(47,484	)	40.84
Forfeited	(2,845	)	43.92
Outstanding as of November 30, 2018	98,184		$	44.46
Exercisable as of November 30, 2018	98,184		$	44.46

The average remaining contractual term for those stock appreciation rights outstanding and those stock appreciation rights that were exercisable as of November 30, 2018 was 2.09 years, with an aggregate intrinsic value of $0.3 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, 2018, the Company issued 73,702 shares under the Company's Employee Stock Purchase Plan.

Share-based Compensation Expense

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



	Nine Months Ended November 30,
	2018		2017
Compensation expense	$	3,335	$	4,810
Income tax benefits	$	700	$	1,684

Unrecognized compensation cost related to restricted stock units, performance share unit awards, stock appreciation rights, and the Company's Employee Stock Purchase Plan at November 30, 2018 totals $8.0 million.

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