Stock-Based Compensation

3 Months Ended

Jul. 31, 2014

F.	Stock-Based Compensation

During the three months ended July 31, 2014 and 2013, we granted options for 313,000 and 281,000 shares of common stock, respectively. We recorded stock option compensation cost of approximately $404,000 and $338,000 and related income tax benefits of approximately $135,000 and $111,000 during the three months ended July 31, 2014 and 2013, 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, 2014 and 2013, we realized excess tax benefits of approximately $41,000 and $27,000, respectively.

During the three months ended July 31, 2014 and 2013, we issued 36,862 and 83,074 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, 2014 and 2013 based on market value at the exercise dates was approximately $182,000 and $235,000, respectively. As of July 31, 2014, unrecognized compensation cost related to unvested stock option awards approximated $4.0 million, which we expect to recognize over a weighted average period of 1.79 years.

- Definition

The entire disclosure for compensation-related costs for equity-based compensation, which may include disclosure of policies, compensation plan details, allocation of equity compensation, incentive distributions, equity-based arrangements to obtain goods and services, deferred compensation arrangements, employee stock ownership plan details and employee stock purchase plan details.

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