Stock-Based Compensation

9 Months Ended

Oct. 31, 2013

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

Stock-Based Compensation

Stock-Based Compensation

During the nine months ended October 31, 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 using 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, 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, 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 October 31, 2013, there was $4,176,000 of unrecognized compensation cost related to stock options that is expected to be recognized over a weighted-average period of 2.35 years, $20,140,000 of unrecognized compensation cost related to restricted stock that is expected to be recognized over a weighted-average period of 2.58 years, and $7,733,000 of unrecognized compensation cost related to performance shares that is expected to be recognized over a weighted-average period of 2.72 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 October 31,						Nine Months Ended October 31,
	2013			2012			2013			2012
	(in thousands)
Stock option costs	$	673		$	590		$	2,601		$	2,510
Restricted stock costs	2,722			2,481			8,857			7,833
Performance share costs	736			417			1,983			974
Total stock-based compensation costs	4,131			3,488			13,441			11,317
Less amount capitalized into qualifying real estate projects	(1,590		)	(1,410		)	(4,765		)	(4,031		)
Amount charged to operating expenses	2,541			2,078			8,676			7,286
Depreciation expense on capitalized stock-based compensation	241			206			721			620
Total stock-based compensation expense	$	2,782		$	2,284		$	9,397		$	7,906
Deferred income tax benefit	$	1,009		$	819		$	3,440		$	2,856

The amount of grant-date fair value expensed immediately for awards granted to retirement-eligible grantees during the nine months ended October 31, 2013 and 2012 was $973,000 and $726,000, respectively.

In connection with the vesting of restricted stock during the nine months ended October 31, 2013 and 2012, the Company repurchased into treasury 179,907 shares and 120,459 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 $1,815,000, respectively.