Annual report pursuant to Section 13 and 15(d)

Stock-Based Employee Compensation (Tables)

v3.8.0.1
Stock-Based Employee Compensation (Tables)
12 Months Ended
Feb. 28, 2018
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]  
Total compensation cost and income tax benefits recognized
Total compensation cost recognized for our stock-based awards and income tax benefits related thereto are as follows:
 
For the Years Ended
 
February 28, 2018
 
February 28, 2017
 
February 29, 2016
(in millions)
 
 
 
 
 
Total compensation cost recognized in our results of operations
$
60.9

 
$
56.1

 
$
54.0

Income tax benefit related thereto recognized in our results of operations
$
13.5

 
$
18.5

 
$
17.8

Stock option activity
The fair value of stock options vested, and the intrinsic value of and tax benefit realized from the exercise of stock options, are as follows:
 
For the Years Ended
 
February 28, 2018
 
February 28, 2017
 
February 29, 2016
(in millions)
 
 
 
 
 
Fair value of stock options vested
$
20.3

 
$
20.3

 
$
20.1

Intrinsic value of stock options exercised
$
189.9

 
$
260.4

 
$
514.9

Tax benefit realized from stock options exercised
$
59.8

 
$
106.0

 
$
193.5

A summary of stock option activity under our Long-Term Stock Incentive Plan is as follows:
 
For the Years Ended
 
February 28, 2018
 
February 28, 2017
 
February 29, 2016
 
Number
of
Options
 
Weighted
Average
Exercise
Price
 
Number
of
Options
 
Weighted
Average
Exercise
Price
 
Number
of
Options
 
Weighted
Average
Exercise
Price
Outstanding as of March 1
8,070,255

 
$
44.31

 
9,541,393

 
$
34.03

 
13,613,615

 
$
25.46

Granted
624,121

 
$
172.70

 
648,147

 
$
157.01

 
838,996

 
$
117.17

Exercised
(1,188,922
)
 
$
31.86

 
(1,948,236
)
 
$
25.79

 
(4,689,588
)
 
$
22.25

Forfeited
(59,725
)
 
$
136.08

 
(170,711
)
 
$
109.23

 
(220,433
)
 
$
71.75

Expired
(1,028
)
 
$
36.13

 
(338
)
 
$
31.92

 
(1,197
)
 
$
21.02

Outstanding as of last day of February
7,444,701

 
$
56.33

 
8,070,255

 
$
44.31

 
9,541,393

 
$
34.03

Exercisable
5,983,286

 
$
34.12

 
6,456,382

 
$
26.66

 
7,348,309

 
$
21.37


Fair value of options, weighted average valuation assumptions
The weighted average grant-date fair value of stock options granted and the weighted average assumptions used to estimate the fair value on the date of grant using the Black-Scholes option-pricing model are as follows:
 
For the Years Ended
 
February 28, 2018
 
February 28, 2017
 
February 29, 2016
Grant-date fair value
$
42.88

 
$
40.09

 
$
31.14

Expected life (1)
5.9 years

 
5.9 years

 
5.9 years

Expected volatility (2)
26.0
%
 
27.1
%
 
28.5
%
Risk-free interest rate (3)
2.0
%
 
1.6
%
 
1.6
%
Expected dividend yield (4)
1.2
%
 
1.0
%
 
1.1
%
(1) 
Based on historical experience of employees’ exercise behavior for similar type awards.
(2) 
Based primarily on historical volatility levels of our Class A Common Stock.
(3) 
Based on the implied yield currently available on U.S. Treasury zero coupon issues with a remaining term equal to the expected life.
(4) 
Based on the calculated yield on our Class A Common Stock at date of grant using the current fiscal year projected annualized dividend distribution rate.

Restricted stock activity
A summary of restricted Class A Common Stock activity under our Long-Term Stock Incentive Plan is as follows:
 
 
For the Years Ended
 
 
February 28, 2018
 
February 28, 2017
 
February 29, 2016
 
 
Number
 
Weighted
Average
Grant-Date
Fair Value
 
Number
 
Weighted
Average
Grant-Date
Fair Value
 
Number
 
Weighted
Average
Grant-Date
Fair Value
Restricted Stock Awards
 
 
 
 
 
 
 
 
 
 
 
 
Outstanding balance as of March 1, Nonvested
 
4,088

 
$
166.34

 
4,984

 
$
119.37

 
117,054

 
$
25.15

Granted
 
3,848

 
$
197.18

 
4,088

 
$
166.34

 
4,984

 
$
119.37

Vested
 
(4,088
)
 
$
166.34

 
(4,984
)
 
$
119.37

 
(116,810
)
 
$
25.16

Forfeited
 

 
$

 

 
$

 
(244
)
 
$
20.60

Outstanding balance as of last day of February, Nonvested
 
3,848

 
$
197.18

 
4,088

 
$
166.34

 
4,984

 
$
119.37

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Restricted Stock Units
 
 
 
 
 
 
 
 
 
 
 
 
Outstanding balance as of March 1, Nonvested
 
455,699

 
$
117.44

 
917,009

 
$
70.23

 
1,063,726

 
$
51.16

Granted
 
157,200

 
$
178.11

 
174,187

 
$
156.74

 
230,742

 
$
122.60

Vested
 
(299,182
)
 
$
109.09

 
(567,643
)
 
$
54.29

 
(269,903
)
 
$
44.48

Forfeited
 
(27,059
)
 
$
140.00

 
(67,854
)
 
$
108.56

 
(107,556
)
 
$
58.65

Outstanding balance as of last day of February, Nonvested
 
286,658

 
$
157.29

 
455,699

 
$
117.44

 
917,009

 
$
70.23

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Performance Share Units
 
 
 
 
 
 
 
 
 
 
 
 
Outstanding balance as of March 1, Nonvested
 
250,333

 
$
141.91

 
501,261

 
$
92.41

 
617,684

 
$
58.21

Granted
 
55,464

 
$
236.79

 
75,765

 
$
190.33

 
155,671

 
$
146.25

Performance achievement (1)
 
55,081

 
$
99.85

 
105,330

 
$
66.50

 
219,720

 
$
38.47

Vested
 
(124,512
)
 
$
100.73

 
(359,370
)
 
$
60.50

 
(439,440
)
 
$
38.47

Forfeited
 
(8,646
)
 
$
144.57

 
(72,653
)
 
$
144.26

 
(52,374
)
 
$
75.42

Outstanding balance as of last day of February, Nonvested
 
227,720

 
$
177.90

 
250,333

 
$
141.91

 
501,261

 
$
92.41

(1) 
Reflects the number of awards achieved above target levels, net of the number of awards achieved below target levels, based on actual performance measured at the end of the performance period.

The fair value of shares vested for our restricted Class A Common Stock awards is as follows:
 
For the Years Ended
 
February 28, 2018
 
February 28, 2017
 
February 29, 2016
(in millions)
 
 
 
 
 
Restricted stock awards
$
0.8

 
$
0.8

 
$
13.7

Restricted stock units
$
56.5

 
$
89.4

 
$
31.7

Performance share units
$
21.4

 
$
57.2

 
$
51.5

Fair value of performance stock units, weighted average valuation assumptions
The weighted average grant-date fair value of performance share units granted with a market condition and the weighted average assumptions used to estimate the fair value on the date of grant using the Monte Carlo Simulation model are as follows:
 
For the Years Ended
 
February 28, 2018
 
February 28, 2017
 
February 29, 2016
Grant-date fair value
$
250.30

 
$
204.53

 
$
153.64

Grant-date price
$
172.09

 
$
157.33

 
$
117.08

Performance period
2.9 years

 
2.8 years

 
3.0 years

Expected volatility (1)
21.5
%
 
20.6
%
 
33.5
%
Risk-free interest rate (2)
1.4
%
 
1.0
%
 
0.9
%
Expected dividend yield (3)
0.0
%
 
0.0
%
 
0.0
%
(1) 
Based primarily on historical volatility levels of our Class A Common Stock.
(2) 
Based on the implied yield currently available on U.S. Treasury zero coupon issues with a remaining term equal to the performance period.
(3) 
No expected dividend yield as units granted earn dividend equivalents.