Stock-Based Compensation

9 Months Ended

Jan. 31, 2017

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

Stock-Based Compensation

F. Stock-Based Compensation

During the nine months ended January 31, 2017 and 2016, we granted options for 342,000 and 1,076,200 shares of common stock, respectively. We recorded stock option compensation cost of approximately $333,000 and $404,000 and related income tax benefits of approximately $124,000 and $148,000 during the three months ended January 31, 2017 and 2016, respectively. We recorded stock option compensation cost of approximately $1.1 million and $1.2 million and related income tax benefits of approximately $409,000 and $443,000 during the nine months ended January 31, 2017 and 2016, respectively. We recorded stock-based compensation expense on a straight-line basis over the vesting period directly to additional paid-in-capital.

The Company adopted ASU No. 2016-09, Compensation – Stock Compensation: Improvements to Employee Share-Based Payment Accounting, in fiscal 2016. Under the new guidance, companies will no longer record excess tax benefits and certain tax deficiencies in additional paid-in capital. Instead, all excess tax benefits and tax deficiencies should be recognized as income tax expense or benefit in the income statement, and additional paid-in capital pools will be eliminated. The guidance requires companies to present excess tax benefits as an operating activity on the statement of cash flows rather than as a financing activity.

Prior to the adoption of ASU No. 2016-09, cash flows resulting from the tax benefits generated by tax deductions in excess of the compensation cost recognized for those options (excess tax benefits) were classified as financing cash flows. During the nine months ended January 31, 2016, we realized excess tax benefits of approximately $231,000, which are included as a component of cash flows from financing activities in the accompanying 2016 consolidated statements of cash flows.

During the nine months ended January 31, 2017 and 2016, we issued 593,082 and 276,700 shares of common stock, respectively, resulting from the exercise of stock options. The total intrinsic value of options exercised during the nine months ended January 31, 2017 and 2016 based on market value at the exercise dates was approximately $786,000 and $1.1 million, respectively. As of January 31, 2017, unrecognized compensation cost related to unvested stock option awards approximated $2.7 million, which we expect to recognize over a weighted average period of 1.59 years.