Stock-Based Compensation

6 Months Ended

May 31, 2014

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 the current market price of the stock or the Black-Scholes option valuation model. In addition, during the first quarter of fiscal year 2014, we granted performance-based restricted stock units that include a three-year market condition. In order to estimate the fair value of such awards, we used a Monte Carlo Simulation valuation model. The Black-Scholes and Monte Carlo Simulation valuation models incorporate assumptions as to stock price volatility, the expected life of options or awards, a risk-free interest rate and dividend yield. We recognize stock-based compensation expense related to options and restricted stock units 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. We recognize stock-based compensation expense related to performance stock units and our employee stock purchase plan using an accelerated attribution method.

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, 2014		May 31, 2013		May 31, 2014		May 31, 2013
Cost of maintenance and services	$	146	$	158	$	298	$	367
Sales and marketing	991		881		2,190		1,920
Product development	1,425		1,225		2,778		2,688
General and administrative	3,147		2,717		5,988		4,495
Stock-based compensation from continuing operations	5,709		4,981		11,254		9,470
Income from discontinued operations	—		900		—		1,317
Total stock-based compensation	$	5,709	$	5,881	$	11,254	$	10,787