Stock-Based Compensation

3 Months Ended

Apr. 30, 2012

Stock-Based Compensation [Abstract]

Stock-Based Compensation

G. Stock-Based Compensation

During the three months ended April 30, 2012, the Company granted 281,828 stock options, 784,935 shares of restricted stock and 301,954 performance shares under the Company’s 1994 Stock Plan. The stock options had a grant-date fair value of $9.24, 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 1.1%, and expected dividend yield of 0%. The exercise price of the options is $14.74, which was the closing price of the underlying Class A common stock on the date of grant. The restricted stock and performance shares had a grant-date fair value of $14.74 per share, which was the closing price of the Class A common stock on the date of grant.

At April 30, 2012, there was $6,045,000 of unrecognized compensation cost related to stock options that is expected to be recognized over a weighted-average period of 2.91 years, $25,309,000 of unrecognized compensation cost related to restricted stock that is expected to be recognized over a weighted-average period of 3.09 years, and $4,352,000 of unrecognized compensation cost related to performance shares that is expected to be recognized over a weighted-average period of 3.67 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,
	2012			2011
	(in thousands)
Stock option costs	$	1,602		$	189
Restricted stock costs		2,830			3,053
Performance shares		99			—
Total stock-based compensation costs		4,531			3,242
Less amount capitalized into qualifying real estate projects		(2,003	)		(431	)
Amount charged to operating expenses		2,528			2,811
Depreciation expense on capitalized stock-based compensation		207			185
Total stock-based compensation expense	$	2,735		$	2,996
Deferred income tax benefit	$	991		$	1,118

The amount of grant-date fair value expensed immediately for awards granted to retirement-eligible grantees during the three months ended April 30, 2012 and 2011 was $726,000 and $1,022,000, respectively. During the three months ended April 30, 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 three months ended April 30, 2012 and 2011, the Company repurchased into treasury 78,844 shares and 70,906 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 $1,182,000 and $1,339,000, respectively.