Stock-Based Compensation

3 Months Ended

Jul. 31, 2011

Stock-Based Compensation

Stock-Based Compensation

E. Stock-Based Compensation

During the three months ended July 31, 2011 and 2010, we granted options for 274,000 and 306,000 shares of common stock, respectively. During the three months ended July 31, 2011 and 2010, we recorded stock-based compensation expense of approximately $284,000 and $230,000 and related income tax benefits of approximately $72,000 and $55,000, respectively. We record stock-based compensation expense on a straight-line basis over the vesting period directly to additional paid-in capital.

We classify cash flows resulting from the tax benefits generated by tax deductions in excess of the compensation cost recognized for those options (excess tax benefits) as financing cash flows. During the three months ended July 31, 2011 and 2010, we realized excess tax benefits of approximately $78,000 and $0, respectively.

During the three months ended July 31, 2011 and 2010, we issued 170,548 and 216,432 shares of common stock, respectively, resulting from the exercise of stock options. The total intrinsic value of options exercised during the three months ended July 31, 2011 and 2010 based on market value at the exercise dates was approximately $565,000 and $552,000, respectively. As of July 31, 2011, unrecognized compensation cost related to unvested stock option awards approximated $3.0 million, which we expect to recognize over a weighted average period of 1.9 years.