Stock-Based Employee Compensation (Tables)
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12 Months Ended |
Feb. 29, 2020 |
|---|
| Share-based Payment Arrangement [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:
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For the Years Ended |
|
February 29,
2020 |
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February 28,
2019 |
|
February 28,
2018 |
(in millions) |
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|
Total compensation cost recognized in our results of operations |
$ |
60.4 |
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|
$ |
64.1 |
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|
$ |
60.9 |
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Income tax benefit related thereto recognized in our results of operations |
$ |
9.5 |
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|
$ |
11.6 |
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|
$ |
13.5 |
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| Stock option activity |
A summary of stock option activity under our Long-Term Stock Incentive Plan is as follows:
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For the Years Ended |
|
February 29, 2020 |
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February 28, 2019 |
|
February 28, 2018 |
|
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 |
5,691,219 |
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|
$ |
81.87 |
|
|
7,444,701 |
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|
$ |
56.33 |
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|
8,070,255 |
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|
$ |
44.31 |
|
Granted |
639,957 |
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|
$ |
206.76 |
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|
540,640 |
|
|
$ |
227.91 |
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|
624,121 |
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|
$ |
172.70 |
|
Exercised |
(1,618,484 |
) |
|
$ |
41.77 |
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|
(2,156,508 |
) |
|
$ |
23.55 |
|
|
(1,188,922 |
) |
|
$ |
31.86 |
|
Forfeited |
(175,917 |
) |
|
$ |
201.44 |
|
|
(133,250 |
) |
|
$ |
187.84 |
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|
(59,725 |
) |
|
$ |
136.08 |
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Expired |
(11,357 |
) |
|
$ |
224.07 |
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|
(4,364 |
) |
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$ |
175.86 |
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|
(1,028 |
) |
|
$ |
36.13 |
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Outstanding as of last day of February |
4,525,418 |
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|
$ |
108.87 |
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|
5,691,219 |
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|
$ |
81.87 |
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|
7,444,701 |
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|
$ |
56.33 |
|
Exercisable |
3,330,164 |
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|
$ |
75.61 |
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|
4,456,486 |
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|
$ |
53.18 |
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|
5,983,286 |
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|
$ |
34.12 |
|
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:
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For the Years Ended |
|
February 29,
2020 |
|
February 28,
2019 |
|
February 28,
2018 |
(in millions) |
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Fair value of stock options vested |
$ |
21.1 |
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|
$ |
22.8 |
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$ |
20.3 |
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Intrinsic value of stock options exercised |
$ |
255.0 |
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|
$ |
348.5 |
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$ |
189.9 |
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Tax benefit realized from stock options exercised |
$ |
60.4 |
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|
$ |
82.6 |
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$ |
59.8 |
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| Fair value of options, weighted average valuation assumptions |
The weighted average grant-date fair value of stock options granted and the weighted average inputs used to estimate the fair value on the date of grant using the Black-Scholes option-pricing model are as follows:
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For the Years Ended |
|
February 29,
2020 |
|
February 28,
2019 |
|
February 28,
2018 |
Grant-date fair value |
$ |
44.90 |
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|
$ |
53.06 |
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|
$ |
42.88 |
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Expected life (1)
|
6.0 years |
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|
5.9 years |
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|
5.9 years |
|
Expected volatility (2)
|
22.1 |
% |
|
22.3 |
% |
|
26.0 |
% |
Risk-free interest rate (3)
|
2.5 |
% |
|
2.9 |
% |
|
2.0 |
% |
Expected dividend yield (4)
|
1.5 |
% |
|
1.3 |
% |
|
1.2 |
% |
|
|
(1) |
Based on historical experience of employees’ exercise behavior for similar type awards. |
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(2) |
Based primarily on historical volatility levels of our Class A Common Stock. |
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(3) |
Based on the implied yield currently available on U.S. Treasury zero coupon issues with a remaining term equal to the expected life. |
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(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. |
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| Restricted stock activity |
A summary of restricted Class A Common Stock activity under our Long-Term Stock Incentive Plan is as follows:
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For the Years Ended |
|
February 29, 2020 |
|
February 28, 2019 |
|
February 28, 2018 |
|
Number |
|
Weighted
Average
Grant-Date
Fair Value
|
|
Number |
|
Weighted
Average
Grant-Date
Fair Value
|
|
Number |
|
Weighted
Average
Grant-Date
Fair Value
|
Restricted Stock Awards |
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Outstanding balance as of March 1, Nonvested |
3,914 |
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|
$ |
214.29 |
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|
3,848 |
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|
$ |
197.18 |
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|
4,088 |
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|
$ |
166.34 |
|
Granted |
— |
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|
$ |
— |
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|
3,914 |
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|
$ |
214.29 |
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|
3,848 |
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|
$ |
197.18 |
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Vested |
(3,470 |
) |
|
$ |
214.34 |
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|
(3,848 |
) |
|
$ |
197.18 |
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|
(4,088 |
) |
|
$ |
166.34 |
|
Forfeited |
(444 |
) |
|
$ |
213.85 |
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|
— |
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|
$ |
— |
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— |
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|
$ |
— |
|
Outstanding balance as of last day of February, Nonvested |
— |
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|
$ |
— |
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|
3,914 |
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|
$ |
214.29 |
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|
3,848 |
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$ |
197.18 |
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For the Years Ended |
|
February 29, 2020 |
|
February 28, 2019 |
|
February 28, 2018 |
|
Number |
|
Weighted
Average
Grant-Date
Fair Value
|
|
Number |
|
Weighted
Average
Grant-Date
Fair Value
|
|
Number |
|
Weighted
Average
Grant-Date
Fair Value
|
Restricted Stock Units |
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Outstanding balance as of March 1, Nonvested |
314,252 |
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|
$ |
181.62 |
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|
286,658 |
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|
$ |
157.29 |
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|
455,699 |
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|
$ |
117.44 |
|
Granted |
138,472 |
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|
$ |
203.32 |
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|
108,545 |
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|
$ |
226.97 |
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|
157,200 |
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|
$ |
178.11 |
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Vested |
(141,211 |
) |
|
$ |
168.68 |
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|
(39,717 |
) |
|
$ |
129.57 |
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|
(299,182 |
) |
|
$ |
109.09 |
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Forfeited |
(40,370 |
) |
|
$ |
200.87 |
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(41,234 |
) |
|
$ |
182.00 |
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|
(27,059 |
) |
|
$ |
140.00 |
|
Outstanding balance as of last day of February, Nonvested |
271,143 |
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|
$ |
196.58 |
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|
314,252 |
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|
$ |
181.62 |
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|
286,658 |
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$ |
157.29 |
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Performance Share Units |
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Outstanding balance as of March 1, Nonvested |
259,464 |
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|
$ |
213.27 |
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|
227,720 |
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|
$ |
177.90 |
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|
250,333 |
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|
$ |
141.91 |
|
Granted |
60,031 |
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$ |
253.72 |
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|
172,468 |
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|
$ |
222.92 |
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|
55,464 |
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$ |
236.79 |
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Performance achievement (1)
|
(17,035 |
) |
|
$ |
168.00 |
|
|
(281 |
) |
|
$ |
155.72 |
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|
55,081 |
|
|
$ |
99.85 |
|
Vested |
(46,454 |
) |
|
$ |
156.80 |
|
|
(106,368 |
) |
|
$ |
147.34 |
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|
(124,512 |
) |
|
$ |
100.73 |
|
Forfeited |
(34,257 |
) |
|
$ |
239.48 |
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|
(34,075 |
) |
|
$ |
215.63 |
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|
(8,646 |
) |
|
$ |
144.57 |
|
Outstanding balance as of last day of February, Nonvested |
221,749 |
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|
$ |
231.49 |
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|
259,464 |
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|
$ |
213.27 |
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|
227,720 |
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|
$ |
177.90 |
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|
(1) |
Reflects the net number of awards achieved above (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:
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For the Years Ended |
|
February 29,
2020 |
|
February 28,
2019 |
|
February 28,
2018 |
(in millions) |
|
|
|
|
|
Restricted stock awards |
$ |
0.7 |
|
|
$ |
0.8 |
|
|
$ |
0.8 |
|
Restricted stock units |
$ |
29.9 |
|
|
$ |
9.0 |
|
|
$ |
56.5 |
|
Performance share units |
$ |
9.9 |
|
|
$ |
24.4 |
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|
$ |
21.4 |
|
|
| 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 inputs used to estimate the fair value on the date of grant using the Monte Carlo Simulation model are as follows:
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For the Years Ended |
|
February 29,
2020 |
|
February 28,
2019 |
|
February 28,
2018 |
Grant-date fair value |
$ |
319.56 |
|
|
$ |
322.42 |
|
|
$ |
250.30 |
|
Grant-date price |
$ |
205.46 |
|
|
$ |
228.26 |
|
|
$ |
172.09 |
|
Performance period |
2.8 years |
|
|
2.9 years |
|
|
2.9 years |
|
Expected volatility (1)
|
23.1 |
% |
|
20.7 |
% |
|
21.5 |
% |
Risk-free interest rate (2)
|
2.3 |
% |
|
2.6 |
% |
|
1.4 |
% |
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.
|