Stock-based Compensation

6 Months Ended

May 31, 2011

Stock-based Compensation [Abstract]

Stock-based Compensation

Note 3: 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 four to five years for options, and three years for restricted stock units.

The following table provides the classification of stock-based compensation as reflected in our consolidated statements of operations:

(In thousands)
	Three Months Ended May 31,				Six Months Ended May 31,
	2011		2010		2011		2010
Costs of revenue	$	156	$	210	$	379	$	473
Sales and marketing		901		1,215		2,191		2,793
Product development		1,290		966		2,559		2,074
General and administrative		2,756		2,054		4,158		3,337
Restructuring		—		—		—		326
Total stock-based compensation expense	$	5,103	$	4,445	$	9,287	$	9,003