Stock-Based Compensation

3 Months Ended

Apr. 30, 2013

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

Stock-Based Compensation

Stock-Based Compensation

During the three months ended April 30, 2013, the Company granted 241,860 stock options, 653,447 shares of restricted stock and 299,460 performance shares under the Company’s 1994 Stock Plan. The stock options had a grant-date fair value of $10.97, 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 0.8%, and expected dividend yield of 0%. The exercise price of the options is $17.60, 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 $17.60 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 $17.78 per share, which was computed using a Monte Carlo simulation.

At April 30, 2013, there was $5,524,000 of unrecognized compensation cost related to stock options that is expected to be recognized over a weighted-average period of 2.71 years, $25,584,000 of unrecognized compensation cost related to restricted stock that is expected to be recognized over a weighted-average period of 2.97 years, and $9,205,000 of unrecognized compensation cost related to performance shares that is expected to be recognized over a weighted-average period of 3.21 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 April 30,
	2013			2012
	(in thousands)
Stock option costs	$	1,335		$	1,602
Restricted stock costs	3,406			2,830
Performance share costs	511			99
Total stock-based compensation costs	5,252			4,531
Less amount capitalized into qualifying real estate projects	(1,818		)	(2,003		)
Amount charged to operating expenses	3,434			2,528
Depreciation expense on capitalized stock-based compensation	240			207
Total stock-based compensation expense	$	3,674		$	2,735
Deferred income tax benefit	$	1,354		$	991

The amount of grant-date fair value expensed immediately for awards granted to retirement-eligible grantees during the three months ended April 30, 2013 and 2012 was $973,000 and $726,000, respectively.

In connection with the vesting of restricted stock during the three months ended April 30, 2013 and 2012, the Company repurchased into treasury 179,907 shares and 78,844 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 $3,167,000 and $1,182,000, respectively.