Stock-Based Compensation Plans

3 Months Ended

Jan. 31, 2020

Stock-Based Compensation Plans [Abstract]

Stock-Based Compensation Plans

11. Stock-Based Compensation Plans

Compensation expense recognized by the Company related to its stock-based compensation plans was as follows:

		Three Months Ended
		January 31,
(in thousands)		2020		2019
Omnibus Incentive Plans:
Restricted shares	$	20,002	$	14,485
Stock options		7,345		5,440
Deferred stock units		859		615
Employee Stock Purchase Plans		371		176
Employee Stock Purchase Incentive Plan		930		52
Atlanta Capital Plan		401		570
Atlanta Capital Phantom Incentive Plan		455		274
Parametric Plan		-		740
Parametric Phantom Incentive Plan		16		922
Total stock-based compensation expense	$	30,379	$	23,274

The total income tax benefit recognized for stock-based compensation arrangements was $7.4 million and $5.2 million for the three months ended January 31, 2020 and 2019, respectively.

Restricted shares

A summary of restricted share activity for the three months ended January 31, 2020 is as follows:

			Weighted-
			Average
			Grant Date
(share figures in thousands)	Shares		Fair Value
Unvested, beginning of period	5,377	$	42.72
Granted	1,517		46.16
Vested	(1,353)		40.32
Forfeited	(56)		44.60
Unvested, end of period	5,485	$	44.24

As of January 31, 2020, there was $182.5 million of compensation cost related to unvested restricted share awards not yet recognized. That cost is expected to be recognized over a weighted-average period of 3.3 years.

Stock options

A summary of stock option activity for the three months ended January 31, 2020 is as follows:

(share and intrinsic value amounts in thousands)	Shares	Weighted-Average Exercise Price		Weighted-Average Remaining Contractual Term (in years)		Aggregate Intrinsic Value
Options outstanding, beginning of period	17,599	$	37.22
Granted	2,827		46.15
Exercised	(928)		34.22
Forfeited/expired	(14)		38.89
Options outstanding, end of period	19,484	$	38.65	6.1	$	148,003
Options exercisable, end of period	10,525	$	34.55	4.3	$	119,944

The Company received $31.6 million and $2.8 million related to the exercise of options for the three months ended January 31, 2020 and 2019, respectively.

As of January 31, 2020, there was $53.0 million of compensation cost related to unvested stock options granted under the 2013 Omnibus Incentive Plan (2013 Plan) and predecessor plans that has not yet been recognized. That cost is expected to be recognized over a weighted-average period of 3.1 years.

Deferred stock units

Deferred stock units issued to non-employee Directors under the 2013 Plan are accounted for as liability awards. Deferred stock units granted are considered fully vested for accounting purposes on the grant date and the entire fair value of these awards is recognized as compensation cost on the date of grant.

During the three months ended January 31, 2020, 18,658 deferred stock units were issued to non-employee Directors pursuant to the 2013 Plan. The total liability attributable to deferred stock units included as a component of accrued compensation on the Company’s Consolidated Balance Sheet was $2.6 million and $1.7 million as of January 31, 2020 and October 31, 2019, respectively. The Company made a cash payment of $0.5 million in the first quarter of fiscal 2019 to settle deferred stock unit award liabilities. There were no cash payments made in the first quarter of fiscal 2020.

Parametric Long-Term Equity Incentive Plan

During the fourth quarter of fiscal 2019, the Company purchased all of the outstanding profit units held by current and former employees under the Parametric Long‐Term Equity Incentive Plan (Parametric Plan). The Company terminated the Parametric Plan in the first quarter of fiscal 2020.

Parametric Phantom Incentive Plans

During the fourth quarter of fiscal 2019, the Company completed an exchange offer transaction accounted for as a modification through which a majority of the outstanding phantom incentive units previously

granted under the Parametric Phantom Incentive Plans were cancelled and exchanged for restricted shares of the Company’s Non-Voting Common Stock issued under the 2013 Plan. The Company will continue to recognize the remaining compensation expense of $0.2 million related to the remaining outstanding phantom incentive units over a weighted-average period of 3.7 years.