Equity |
3 Months Ended |
|---|---|
Aug. 31, 2026 | |
| Equity | |
| Equity | 6. Equity Stock-Based Compensation In July 2026, as part of our annual long-term stock incentive compensation, we granted 217,562 shares of performance-based restricted stock and 91,749 shares of time-based restricted stock to eligible employees. The grant date fair value per share for these was $129.47 (the closing price per share of our common stock on the grant date). We also granted 15,004 shares of time-based restricted stock to members of the Board of Directors with a grant date fair value per share of $109.99 (the closing price per share of our common stock on the grant date). No stock options were granted in fiscal 2027. In July 2026, we granted 161,500 shares of restricted stock to our Chairman, President, and Chief Executive Officer which is tied to our stock price performance. The restricted stock grant vests on July 31, 2031 with the number of shares ultimately vesting based on our stock price meeting or exceeding certain stock price hurdle thresholds on or prior to July 31, 2031 which include stock prices of $175 (one-third of the shares will vest), $200 (an additional one-third of the shares will vest), and $250 (the remaining one-third of the shares will vest). The fair value of the grant was estimated at $15.0 million using a Monte Carlo simulation model for the market-based grant. Expense charged to operations for restricted stock during each of the three-month periods ended August 31, 2026 and 2025 was $7.1 million and $4.2 million, respectively. The total intrinsic value of stock options exercised during the three-month periods ended August 31, 2026 and 2025 was $1.1 million and $4.6 million, respectively. Expense charged to operations for stock options during the three-month periods ended August 31, 2026 and 2025 was $0.7 million and $1.1 million, respectively. Stock-based compensation expense is recognized on a straight-line basis over the requisite service period based on the equity’s grant date fair value. For participants who are or become retirement-eligible during the service period, stock-based compensation expense is recognized over the period ending on the date the participant becomes retirement-eligible. Earnings per Share The computation of basic earnings per share is based on the weighted average number of common shares outstanding during each period. The computation of diluted earnings per share is based on the weighted average number of common shares outstanding during the period plus, when their effect is dilutive, incremental shares related to outstanding stock options. At August 31, 2026, no stock options were determined to be anti-dilutive. The potential dilutive effect of 64,000 shares relating to stock options was excluded from the computation of weighted average common shares outstanding – diluted for the three-month period ended August 31, 2025. These shares would have been anti-dilutive because the exercise price of these options was greater than the average market price of the common shares for the period. |