Stock-Based Compensation

9 Months Ended

Sep. 30, 2015

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

During the nine months ended September 30, 2015, the Company granted 28,240 stock options, 826,718 shares of restricted stock and 627,385 performance shares under the Company’s 1994 Stock Plan. The stock options had a grant-date fair value of $7.79, which was computed using the Black-Scholes option-pricing model using the following assumptions: expected term of 5.5 years, expected volatility of 30.8%, risk-free interest rate of 1.71%, and expected dividend yield of 0%. The exercise price of the options is $24.62, 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 $24.62 per share, the closing price of the Class A common stock on the date of grant. The performance shares had a weighted-average grant-date fair value of $32.14 per share, which was computed using Monte Carlo simulations.

At September 30, 2015, $1,734,000 of unrecognized compensation cost related to stock options is expected to be recognized over a weighted-average period of 23 months, $23,600,000 of unrecognized compensation cost related to restricted stock is expected to be recognized over a weighted-average period of 27 months, and $18,573,000 of unrecognized compensation cost related to performance shares is expected to be recognized over a weighted-average period of 26 months.

The following table summarizes stock-based compensation costs and related deferred income tax benefit recognized in the financial statements:



	Three Months Ended September 30,						Nine Months Ended September 30,
	2015			2014			2015			2014
	(in thousands)
Stock option costs	$	320		$	698		$	985		$	2,677
Restricted stock costs	3,349			2,833			11,950			9,136
Performance share costs	3,541			1,087			8,601			3,027
Total stock-based compensation costs	7,210			4,618			21,536			14,840
Less amount capitalized into qualifying real estate projects	(1,883		)	(1,490		)	(4,967		)	(4,110		)
Amount charged to operating expenses	5,327			3,128			16,569			10,730
Depreciation expense on capitalized stock-based compensation	227			139			679			586
Total stock-based compensation expense	$	5,554		$	3,267		$	17,248		$	11,316
Deferred income tax benefit	$	2,131		$	1,214		$	6,642		$	4,235

The amount of grant-date fair value expensed immediately for awards granted to retirement-eligible grantees during the nine months ended September 30, 2015 and 2014 was $1,926,000 and $1,358,000, respectively.

In connection with the vesting of restricted stock during the nine months ended September 30, 2015 and 2014, the Company repurchased 216,700 shares and 205,568 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 $5,412,000 and $3,800,000, respectively.