Stock-Based Compensation

6 Months Ended

May 31, 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				Six Months Ended
	May 31, 2013		May 31, 2012		May 31, 2013		May 31, 2012
Cost of software licenses	$	—	$	—	$	—	$	3
Cost of maintenance and services	158		204		367		429
Sales and marketing	881		892		1,920		2,147
Product development	1,225		703		2,688		1,514
General and administrative	2,717		2,782		4,495		5,206
Stock-based compensation from continuing operations	4,981		4,581		9,470		9,299
Income (loss) from discontinued operations	900		2,088		1,317		4,461
Total stock-based compensation	$	5,881	$	6,669	$	10,787	$	13,760

During the second quarter of fiscal year 2013, in connection with the divestiture of the Apama product line, we entered into transition agreements with five executives. As part of the agreements, the executives are entitled to accelerated vesting of certain stock-based awards upon the completion of the divestiture. Due to the anticipated accelerated vesting, we recognized additional stock-based compensation of $0.6 million in the three and six months ended May 31, 2013 in discontinued operations.

During the six months ended May 31, 2012, the employment of three of our executives terminated. As part of the separation agreements, the executives were entitled to accelerated vesting of certain stock-based awards. Due to the separation and accelerated vesting, we recognized additional stock-based compensation of $1.2 million and $1.8 million in the three and six months ended May 31, 2012, respectively.