Table of Contents AZZ INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS The 2005 Plan permitted the granting of stock appreciation rights and other equity-based awards to certain employees. This plan was terminated upon the effective date of the 2014 Plan and no future grants may be made under the 2005 Plan. There were stock appreciation rights granted under the 2005 Plan prior to its termination that remain outstanding, and if exercised, such awards will be settled from the balance of shares available for issuance under the 2005 Plan. As of February 29, 2020, there were 0.1 million shares available for issuance under the 2005 Plan. The 2005 Plan will be formally retired when all remaining outstanding stock appreciation rights are exercised, forfeited or expire. All outstanding stock appreciation rights will expire on or before March 1, 2021. Restricted stock unit ("RSU") awards are valued at the market price of the Company's common stock on the grant date. Awards generally vest ratably over a period of three years but these awards may vest early in accordance with the Plan’s accelerated vesting provisions. RSU awards have dividend equivalent rights (“DERs”), which entitle holders of RSUs to the same dividend value per share as holders of common stock. DERs are subject to the same vesting and other terms and conditions as the corresponding unvested RSUs. DERs are accumulated and paid when the underlying shares vest. A summary of the Company's restricted stock unit award activity (including DERs) for the year ended February 29, 2020 is as follows: Restricted Stock Unit Awards Performance Share Unit Awards The total fair value of restricted stock units vested during fiscal years 2020, 2019, and 2018 was $3.8 million, $2.1 million and $3.0 million, respectively. For fiscal years 2020, 2019 and 2018, there were 194,946, 146,532 and 109,777, respectively, of non-vested restricted stock units outstanding with weighted average grant date fair values of $44.34, $48.93 and $56.62, respectively. The Company grants performance share unit ("PSU") awards to certain employees, which also include DERs as described above. These PSU awards have a three year performance cycle and will vest and become issuable, if at all, on the third anniversary of the award date. The PSU awards are subject to the Company’s degree of achievement of a target annual average adjusted return on assets during these three year periods and, in certain circumstances, vesting is based on the relative performance of a predetermined group of peer companies. In addition, these PSU awards may have vesting conditions or certain vesting multipliers, which are based on the Company’s total shareholder return during such three years in comparison to a defined specific industry peer group. The Company estimates the fair value of PSU awards with performance and service conditions using the value of the Company's common stock on the date of grant. The Company estimates the fair value of PSU awards with market conditions using a Monte Carlo simulation model on the date of grant. A summary of the Company’s performance share unit award activity (including DERs) for the year ended February 29, 2020 is as follows: 53 Restricted Stock Units Weighted Average Grant Date Fair Value Outstanding at beginning of year 146,532 $ 48.93 Granted 140,070 43.86 Vested (84,595 ) 54.63 Forfeited (7,061) 45.30 Outstanding at end of year 194,946 $ 44.34 Performance Stock Units Weighted Average Grant Date Fair Value Outstanding at beginning of year 83,125 $ 50.62 Granted 49,000 46.19 Vested — — Forfeited (22,189) 55.08 Outstanding at end of year 109,936 $ 47.75