Stock-Based Compensation

9 Months Ended

Sep. 30, 2014

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

Stock-Based Compensation

Stock-Based Compensation

During the nine months ended September 30, 2014, the Company granted 233,914 stock options, 602,602 shares of restricted stock and 309,750 performance shares under the Company’s 1994 Stock Plan. The stock options had a grant-date fair value of $11.60, which was computed using the Black-Scholes option-pricing model using the following assumptions: expected term of 5.5 years, expected volatility of 71.5%, risk-free interest rate of 1.91%, and expected dividend yield of 0%. The exercise price of the options is $18.73, 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 $18.73 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 $18.23 per share, which was computed using a Monte Carlo simulation.

At September 30, 2014, $3,578,000 of unrecognized compensation cost related to stock options is expected to be recognized over a weighted-average period of 30 months, $19,662,000 of unrecognized compensation cost related to restricted stock is expected to be recognized over a weighted-average period of 31 months, and $9,596,000 of unrecognized compensation cost related to performance shares is expected to be recognized over a weighted-average period of 30 months.

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

	Three Months Ended September 30,						Nine Months Ended September 30,
	2014			2013			2014			2013
	(in thousands)
Stock option costs	$	698		$	674		$	2,677		$	2,574
Restricted stock costs	2,833			2,722			9,136			8,737
Performance share costs	1,087			736			3,027			1,811
Total stock-based compensation costs	4,618			4,132			14,840			13,122
Less amount capitalized into qualifying real estate projects	(1,490		)	(1,591		)	(4,110		)	(4,690		)
Amount charged to operating expenses	3,128			2,541			10,730			8,432
Depreciation expense on capitalized stock-based compensation	139			241			586			710
Total stock-based compensation expense	$	3,267		$	2,782		$	11,316		$	9,142
Deferred income tax benefit	$	1,214		$	1,009		$	4,235		$	3,342

The amount of grant-date fair value expensed immediately for awards granted to retirement-eligible grantees during the nine months ended September 30, 2014 and 2013 was $1,358,000 and $973,000, respectively.

In connection with the vesting of restricted stock during the nine months ended September 30, 2014 and 2013, the Company repurchased 205,568 shares and 183,375 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 $3,800,000 and $3,226,000, respectively.