The fair value of our TSR performance-based awards at the date of grant was estimated using the Monte-Carlo simulation model with the following assumptions:
|
|
|
Three Months Ended |
|
|
Nine Months Ended |
|
|
|
|
April 30, |
|
|
April 30, |
|
|
|
|
2017 |
|
|
2016 |
|
|
2017 |
|
|
2016 |
|
|
Stock price (1) |
|
$ |
73.60 |
|
|
$ |
- |
|
|
$ |
89.88 |
|
|
$ |
84.06 |
|
|
Expected volatility (2) |
|
|
27.00 |
% |
|
|
0.00 |
% |
|
|
27.0 |
% |
|
|
26.4 |
% |
|
Risk-free interest rate (3) |
|
|
0.85 |
% |
|
|
0.00 |
% |
|
|
0.85 |
% |
|
|
1.04 |
% |
|
Expected annual dividend yield (4) |
|
|
0.00 |
% |
|
|
0.00 |
% |
|
|
0.00 |
% |
|
|
0.00 |
% |
|
Weighted average grant date fair value of time-based
restricted stock awards |
|
$ |
78.22 |
|
|
$ |
74.18 |
|
|
$ |
88.16 |
|
|
$ |
82.66 |
|
|
Weighted average grant date fair value of performance
based restricted stock awards |
|
$ |
73.60 |
|
|
$ |
- |
|
|
$ |
86.88 |
|
|
$ |
98.81 |
|
|
(1) |
The stock price is the closing price of our common stock on the date of grant. |
|
(2) |
The expected volatility for each grant is determined based on the historical volatility for the peer group companies and our common stock over a period equal to the remaining term of the performance period from the date of grant for all awards. |
|
(3) |
The risk-free interest rate is determined based on the yield of zero-coupon U.S. Treasury securities for a period that is commensurate with the performance period. |
|
(4) |
Dividends are considered reinvested when calculating TSR. The dividend yield is therefore considered to be 0%. |
|