Stock-Based Compensation

6 Months Ended

Jul. 31, 2012

Disclosure of Compensation Related Costs, Share-based Payments [Abstract]

Stock-Based Compensation

Stock-Based Compensation

During the six months ended July 31, 2012, the Company granted 281,828 stock options, 784,935 shares of restricted stock and 301,954 performance shares under the Company’s 1994 Stock Plan. The stock options had a grant-date fair value of $9.24, which was computed using the Black-Scholes option-pricing model with the following assumptions: expected term of 5.5 years, expected volatility of 74.1%, risk-free interest rate of 1.1%, and expected dividend yield of 0%. The exercise price of the options is $14.74, which was the closing price of the underlying Class A common stock on the date of grant. The restricted stock had a grant-date fair value of $14.74 per share, which was the closing price of the Class A common stock on the date of grant. The performance shares had a grant-date fair value of $20.74 per share, which was computed using a Monte Carlo simulation.

At July 31, 2012, there was $5,387,000 of unrecognized compensation cost related to stock options that is expected to be recognized over a weighted-average period of 2.71 years, $22,693,000 of unrecognized compensation cost related to restricted stock that is expected to be recognized over a weighted-average period of 2.90 years, and $5,706,000 of unrecognized compensation cost related to performance shares that is expected to be recognized over a weighted-average period of 3.42 years.

The amount of stock-based compensation costs and related deferred income tax benefit recognized in the financial statements are as follows:

	Three Months Ended July 31,						Six Months Ended July 31,
	2012			2011			2012			2011
	(in thousands)
Stock option costs	$	318		$	806		$	1,920		$	995
Restricted stock costs	2,522			2,277			5,352			5,330
Performance shares	458			—			557			—
Total stock-based compensation costs	3,298			3,083			7,829			6,325
Less amount capitalized into qualifying real estate projects	(618		)	(1,493		)	(2,621		)	(1,924		)
Amount charged to operating expenses	2,680			1,590			5,208			4,401
Depreciation expense on capitalized stock-based compensation	207			186			414			371
Total stock-based compensation expense	$	2,887		$	1,776		$	5,622		$	4,772
Deferred income tax benefit	$	1,046		$	620		$	2,037		$	1,738

The amount of grant-date fair value expensed immediately for awards granted to retirement-eligible grantees during the six months ended July 31, 2012 and 2011 was $726,000 and $1,022,000, respectively. During the six months ended July 31, 2011, previously recorded stock option costs in the amount of $1,622,000, most of which was previously capitalized into real estate projects, were reversed to reflect actual forfeitures in excess of estimated forfeitures.

In connection with the vesting of restricted stock during the six months ended July 31, 2012 and 2011, the Company repurchased into treasury 106,711 shares and 87,070 shares respectively, of Class A common stock to satisfy the employees’ related minimum statutory tax withholding requirements. These shares were placed in treasury with an aggregate cost basis of $1,591,000 and $1,630,000, respectively.