Stock-Based Compensation Plans

6 Months Ended

Apr. 30, 2020

Stock-Based Compensation Plans [Abstract]

Stock-Based Compensation Plans

12. Stock-Based Compensation Plans

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

		Three Months Ended				Six Months Ended
		April 30,				April 30,
(in thousands)		2020		2019		2020		2019
Omnibus Incentive Plans:
Restricted shares	$	15,773	$	14,015	$	35,775	$	28,500
Stock options		4,760		5,122		12,105		10,562
Deferred stock units		(483)		124		376		739
Employee Stock Purchase Plans		-		-		371		176
Employee Stock Purchase Incentive Plan		36		325		966		377
Atlanta Capital Plan		401		570		802		1,140
Atlanta Capital Phantom Incentive Plan		445		265		900		539
Parametric Plan		-		600		-		1,340
Parametric Phantom Incentive Plan		16		991		32		1,913
Total stock-based compensation expense	$	20,948	$	22,012	$	51,327	$	45,286

The total income tax benefit recognized for stock-based compensation arrangements was $5.2 million and $5.1 million for the three months ended April 30, 2020 and 2019, respectively and $12.6 million and $10.3 million for the six months ended April 30, 2020 and 2019, respectively.

Restricted shares

A summary of restricted share activity for the six months ended April 30, 2020 is as follows:

			Weighted-
			Average
			Grant Date
(share figures in thousands)	Shares		Fair Value
Unvested, beginning of period	5,377	$	42.72
Granted	1,694		46.36
Vested	(1,547)		40.31
Forfeited	(83)		44.65
Unvested, end of period	5,441	$	43.65

As of April 30, 2020, there was $174.2 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 3.1 years.

Stock options

A summary of stock option activity for the six months ended April 30, 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	2,888		46.21
Exercised	(1,370)		33.88
Forfeited/expired	(22)		40.92
Options outstanding, end of period	19,095	$	38.81	5.9	$	39,671
Options exercisable, end of period	10,200	$	34.63	4.1	$	36,178

The Company received $45.3 million and $11.8 million related to the exercise of options for the six months ended April 30, 2020 and 2019, respectively.

As of April 30, 2020, there was $48.7 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 2.9 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 six months ended April 30, 2020, 19,300 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 $2.1 million and $1.7 million as of April 30, 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 during the six months ended April 30, 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 $0.1 million related to the remaining outstanding phantom incentive units over a weighted-average period of 3.7 years.