XML 35 R19.htm IDEA: XBRL DOCUMENT v3.21.1
Share-based Compensation
 12 Months Ended
Feb. 28, 2021
Share-based Payment Arrangement, Noncash Expense [Abstract]  
Share-based Compensation Share-based Compensation
The Company has two share-based compensation plans, the 2014 Long Term Incentive Plan (the "2014 Plan") and the Amended and Restated 2005 Long Term Incentive Plan (the “2005 Plan”).
The 2014 Plan provides for broad-based equity grants to employees, including executive officers, and members of the board of directors and permits the granting of restricted shares, restricted stock units, performance awards, stock appreciation
rights and other stock-based awards. The maximum number of shares that may be issued under the 2014 Plan is 1.5 million shares and, as of February 28, 2021, the Company had approximately 0.8 million shares reserved for future issuance under this plan. The 2005 Plan permitted the granting of stock appreciation rights and other equity-based awards to certain employees. This plan was terminated upon the effective date of the 2014 Plan and no future grants may be made under the 2005 Plan. There were stock appreciation rights granted under the 2005 Plan prior to its termination that remain outstanding, and if exercised, such awards will be settled from the balance of shares available for issuance under the 2005 Plan. As of February 28, 2021, there were 2,711 and 2,724 shares available for issuance for stock appreciation rights under the 2005 Plan and the 2014 Plan, respectively. The 2005 Plan will be formally retired when all remaining outstanding stock appreciation rights are exercised, forfeited or expire. All outstanding stock appreciation rights will expire during fiscal year 2022.
The Company accounts for its share-based employee compensation plans in accordance with ASC 718, Compensation—Stock Compensation. The Company recognizes compensation expense over the requisite service period, which is in line with the applicable vesting period for each share-based award.
Restricted Stock Unit Awards
Restricted stock unit ("RSU") awards are valued at the market price of the Company's 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. RSU awards have dividend equivalent rights (“DERs”), which entitle holders of RSUs to the same dividend value per share as holders of common stock. DERs are subject to the same vesting and other terms and conditions as the corresponding unvested RSUs. DERs are accumulated and paid when the awards vest and shares are issued.
A summary of the Company's RSU award activity (including DERs) for fiscal years 2021, 2020, and 2019 is as follows:
 
202120202019
Restricted Stock  UnitsWeighted Average  Grant Date Fair ValueRestricted Stock  UnitsWeighted Average  Grant Date Fair ValueRestricted Stock  UnitsWeighted Average  Grant Date Fair Value
Outstanding at beginning of year194,946 $44.34 146,532 $48.93 109,777 $56.62 
Granted131,120 28.78 140,070 43.86 84,895 42.05 
Vested(70,913)45.67 (84,595)54.63 (38,733)54.53 
Forfeited(28,707)36.59 (7,061)45.30 (9,407)53.46 
Outstanding at end of year226,446 $35.66 194,946 $44.34 146,532 $48.93 
Vested and expected to vest at end of year224,807 $35.56 193,718 $44.34 146,532 $48.93 
The total fair value of RSU awards vested during fiscal years 2021, 2020, and 2019 was $2.3 million, $3.8 million and $2.1 million, respectively.
Performance Share Unit Awards
The Company grants performance share unit ("PSU") awards to certain employees, which also include DERs as described above. These PSU awards have a three-year performance cycle and will vest and become issuable, if at all, on the third anniversary from the award date. The PSU awards granted in fiscal 2019 and fiscal 2020 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 periods in comparison to a defined specific industry peer group. The PSU awards granted in fiscal 2021 are based on the Company's total shareholder return during the three-year period, in comparison to a defined specific industry peer group and include certain vesting multipliers. 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’s PSU award activity (including DERs) for fiscal years 2021, 2020, and 2019 is as follows:
202120202019
 Performance Stock Units  Weighted Average Grant Date Fair Value  Performance Stock Units  Weighted Average Grant Date Fair Value  Performance Stock Units  Weighted Average Grant Date Fair Value
Outstanding at the beginning of year109,936 $47.75 83,125 $49.74 70,030 $54.59 
Granted69,955 33.22 49,000 46.19 46,183 42.00 
Vested— — — — (3,378)46.65 
Forfeited(36,307)50.57 (22,189)55.08 (29,710)49.51 
Outstanding at the end of year143,584 $39.96 109,936 $47.75 83,125 $49.74 
The PSU awards in the table above are presented at the face value of the respective grants. However, the number of PSU awards that may ultimately vest can vary in a range 0% to 250% of the face amount of such awards, depending on the outcome of the performance or market vesting conditions, as applicable.
Stock Appreciation Rights
Stock appreciation rights ("SARs") are granted with an exercise price equal to the market value of the Company's common stock on the date of grant. These awards generally have a contractual term of seven years and vested ratably over a period of three years, although some vested immediately on issuance. These awards were valued using the Black-Scholes option pricing model. The Company did not grant any SARs in fiscal year 2021, 2020 or 2019.
 
A summary of the Company’s SAR activity for fiscal years 2021, 2020 and 2019 is as follows:
 
202120202019
 SARs  Weighted  Average Exercise  Price  SARs  Weighted  Average Exercise  Price  SARs  Weighted  Average Exercise  Price
Outstanding at beginning of year94,826 $44.58 98,184 $44.46 148,513 $43.29 
Granted— — — — — — 
Exercised(45,902)44.00 (2,965)44.58 (47,484)40.84 
Forfeited(43,489)45.10 (393)43.92 (2,845)43.92 
Outstanding at end of year5,435 $45.25 94,826 $44.58 98,184 $44.46 
Exercisable at the end of year5,435 $45.25 94,826 $44.58 98,184 $44.46 
As of February 28, 2021, the average remaining contractual term for both outstanding and exercisable SARs was 0.34 years and these awards had no intrinsic value.
The following table summarizes additional information about SARs outstanding at February 28, 2021.

Range of Exercise PricesSARs Outstanding and ExercisableAverage Remaining LifeWeighted Average Exercise Price
44.15 - 44.15
2,711 0.17$44.15 
46.34 - 46.34
2,724 0.5146.34 
44.15 - 46.34
5,435 0.34$45.25 
 
Directors Grants
The Company granted each of its independent directors a total of 3,174, 2,124 and 1,823 shares of its common stock during fiscal years 2021, 2020 and 2019, respectively. These common stock grants were valued at $33.08, $47.08 and $54.85 per share for fiscal years 2021, 2020 and 2019, respectively, which was the market price of the Company's common stock on the respective grant dates.
Employee Stock Purchase Plan
The Company has an employee stock purchase plan ("ESPP"), which is open to all employees. The ESPP 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. An aggregate of 1.5 million shares of common stock are authorized for issuance under the ESPP. Of this amount, 1.3 million shares were available for issuance as of February 28, 2021. The Company issues new shares upon purchase through the ESPP.
Share-based Compensation Expense
The following table shows share-based compensation expense and the related income tax benefit included in the consolidated statements of income for fiscal years 2021, 2020 and 2019 (in thousands):
 
202120202019
Compensation expense$7,330 $6,290 $4,659 
Income tax benefits$1,539 $1,321 $978 
Unrecognized compensation cost related to unvested stock awards at February 28, 2021 was $9.1 million, which is expected to be recognized over a weighted average period of 1.72 years.
The actual tax benefit/(expense) realized from share-based compensation during fiscal years 2021, 2020 and 2019 was $(0.4) million, $(0.1) million and $(0.3) million, respectively.
The Company’s policy is to issue shares under these plans 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.