Stock-Based Compensation

9 Months Ended

Oct. 31, 2011

Stock-Based Compensation [Abstract]

Stock-Based Compensation

I.   Stock-Based Compensation

During the nine months ended October 31, 2011, the Company granted 473,519 stock options and 730,554 shares of restricted stock under the Company’s 1994 Stock Plan. The stock options had a grant-date fair value of $11.20, which was computed using the Black-Scholes option-pricing model with the following assumptions: expected term of 5.5 years, expected volatility of 72.4%, risk-free interest rate of 2.6%, and expected dividend yield of 0%. The exercise price of the options is $17.72, 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 $17.72 per share, which was the closing price of the Class A common stock on the date of grant.

At October 31, 2011, there was $5,906,000 of unrecognized compensation cost related to stock options that is expected to be recognized over a weighted-average period of 2.83 years, and there was $19,020,000 of unrecognized compensation cost related to restricted stock that is expected to be recognized over a weighted-average period of 2.78 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,
	2011		2010		2011		2010
	(in thousands)				(in thousands)
Stock option costs	$	806	$	479	$	1,801	$	4,693
Restricted stock costs		2,385		1,858		7,715		6,690
Total stock-based compensation costs		3,191		2,337		9,516		11,383
Less amount capitalized into qualifying real estate projects		(1,522)		(519)		(3,446)		(5,104)
Amount charged to operating expenses		1,669		1,818		6,070		6,279
Depreciation expense on capitalized stock-based compensation		693		150		1,064		451
Total stock-based compensation expense	$	2,362	$	1,968	$	7,134	$	6,730
Deferred income tax benefit	$	829	$	660	$	2,567	$	2,301

The amount of grant-date fair value expensed immediately for awards granted to retirement-eligible grantees during the nine months ended October 31, 2011 and 2010 was $1,022,000 and $1,136,000, respectively. During the nine months ended October 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 nine months ended October 31, 2011 and 2010, the Company repurchased into treasury 90,104 shares and 50,073 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 $1,670,000 and $711,000, respectively.