Stock-Based Compensation

3 Months Ended

Feb. 28, 2013

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

Stock-Based Compensation

Stock-Based Compensation

Stock-based compensation expense reflects the fair value of stock-based awards measured at the grant date and recognized over the relevant service period. We estimate the fair value of each stock-based award on the measurement date using either the current market price of the stock or the Black-Scholes option valuation model. The Black-Scholes option valuation model incorporates assumptions as to stock price volatility, the expected life of options, a risk-free interest rate and dividend yield. We recognize stock-based compensation expense on a straight-line basis over the service period of the award, which is generally 4 or 5 years for options and 3 years for restricted stock units and restricted stock awards.

The following table provides the classification of stock-based compensation as reflected in our condensed consolidated statements of income (in thousands):

	Three Months Ended
	February 28, 2013		February 29, 2012
Cost of software licenses	$	—	$	3
Cost of maintenance and services	230		279
Sales and marketing	1,261		1,522
Product development	1,637		1,013
General and administrative	1,778		2,424
Stock-based compensation from continuing operations	4,906		5,241
Income (loss) from discontinued operations	—		1,850
Total stock-based compensation	$	4,906	$	7,091

During the first quarter of fiscal year 2012, the employment of one of our executives terminated. As part of a pre-existing separation agreement, the executive was entitled to accelerated vesting of certain stock-based awards. Due to the separation and accelerated vesting, we recognized additional stock-based compensation of $0.6 million in the first quarter of fiscal year 2012.