17. Stock-Based Incentive Compensation Plans
Under the Company’s 1992 Stock-Based Incentive Compensation Plan, stock options may be granted to officers and other key employees of the Company for the purchase of up to 6,900,000 shares of the Company’s Common stock. Expiration dates for the options may not exceed ten years from the date of grant. Under a separate plan for non-employee directors adopted during fiscal 1993, up to 200,000 shares have been authorized for distribution of options. Automatic grants are made annually under this plan. The Company accounts for these plans under the provisions of APB Opinion 25, under which no compensation cost is recognized for stock option grants as the options are granted at fair market value at date of grant.
    Had compensation costs for these plans been determined consistent with Statement of Financial Accounting Standard No. 123, “Accounting for Stock-Based Compensation,” the Company’s net income and earnings per share would have been reduced to the following pro forma amounts:

(Amounts in thousands except per share data)			2000			1999			1998
Net income:	As reported	$	83,494		$	107,121		$	108,545
	Pro forma		80,299			101,347			106,014
Diluted earnings per share:	As reported	$	2.41		$	2.94		$	3.01
	Pro forma		2.05			2.52			2.87

    Because the SFAS No. 123 method of accounting has not been applied to options granted prior to May 1, 1995, the resulting pro forma compensation cost may not be representative of that to be expected in future years.
    The following is a summary of the stock option activity (including those from the expired plan) for employees and non-employee directors for fiscal years 2000, 1999 and 1998.

		2000					1999					1998
		Shares		Wtd. Avg. Exercise Price			Shares		Wtd. Avg. Exercise Price			Shares		Wtd. Avg. Exercise Price
Outstanding at
	beginning of year	2,610,793		$	28.29		2,163,424		$	22.19		2,606,524		$	19.95
Granted		523,237			15.26		1,452,452			32.03		481,300			28.10
Exercised		–			–		(951,851)			20.06		(907,400)			18.72
Forfeited		(46,894)			29.50		(53,232)			30.66		(17,000)			27.46
Outstanding at end
	of year	3,087,136		$	26.06		2,610,793			$28.29		2,163,424			22.19
Exercisable at end
	of year	2,206,595		$	27.60		1,663,316			$27.32		1,976,224			21.62
Weighted average
	fair value of
	options granted			$	4.27				$	11.78				$	9.01

    The 3,087,136 options outstanding at April 30, 2000 have exercise prices ranging from $14.75 to $39.63 and a weighted average remaining contractual life of 7.2 years.
    The fair value of each option granted is estimated on the date of grant using the Black-Scholes option pricing model with the following weighted-average assumptions used for grants in fiscal years 2000, 1999 and 1998, respectively: risk-free interest rates of 6.0 percent; expected dividend yields of 5.0 percent, 3.0 percent and 3.0 percent; expected lives of six years; and, expected volatility of 39 percent, 35 percent and 34 percent.