Note 12 - Stock-based compensation

At January 31, 2018, the Company had the following incentive stock plans:


•	2017 Omnibus Stock Incentive Plan as Amended June 13, 2017, which stockholders approved in June 2017;


•	2013 Omnibus Stock Incentive Plan as Amended June 14, 2013, which stockholders approved in June 2013;


•	2009 Non-Employee Directors Stock Option Plan, which stockholders approved in June 2009;


•	2004 Stock Incentive Plan, which stockholders approved in June 2004;


•	2001 Independent Directors Stock Option Plan, which stockholders approved in June 2001.

At January 31, 2018, the Company had reserved a total of 718,730 shares for issuance under these incentive stock plans.

The 2017 Plan and 2013 Plan provide for the grant of deferred shares, non-qualified stock options, incentive stock options, restricted shares, restricted stock units, and performance-based restricted stock units intended to qualify under section 422 of the Internal Revenue Code; and the 2009 Plan, 2004 Plan and 2001 Plan provide for the grant of non-qualified stock options. All of the Plans authorize awards to officers, employees, consultants, and directors.

Stock compensation expense

The Company has stock-based compensation awards that can be granted to eligible employees, officers or directors. The Company recognized the following stock based compensation expense:

Stock options

Options vest ratably over 4 years and are exercisable for up to ten years from the date of grant. To cover the exercise of vested options, the Company issues new shares from its authorized but unissued share pool. The Company calculates all stock compensation expense based on the grant date fair value of the option and recognizes expense on a straight-line basis over the four-year vesting period of the option.

The fair value of each option award was estimated on the date of grant using the Black-Scholes option-pricing model that used the assumptions noted in the following table. The principal variable assumptions utilized in valuing options and the methodology for estimating such model inputs include:


1.	Risk-free interest rate - an estimate based on the "Market yield on U.S. Treasury securities at the rate for the period described in assumption 3 below, quoted on investment basis" for the end of week closest to the stock option grant date, from the Federal Reserve website;


2.	Expected volatility - an estimate based on the historical volatility of PPIH common stock's weekly closing stock price for the expected life; and


3.	Expected life of the option - an estimate based on historical experience including the effect of employee terminations.



		2017		2016
1.	Risk-free interest rate	—	%	1.2	%
2.	Expected volatility	—	%	43.2	%
3.	Expected life in years	0		5.0
4.	Dividend yield	—	%	—	%

The following summarizes the activity related to options outstanding under all plans for the years ended January 31, 2017 and 2018. The Company did not grant any stock options in 2017.



(Shares in thousands)	Options		Weighted average exercise price	Weighted average remaining contractual term	Aggregate intrinsic value
Outstanding on January 31, 2016	720		$11.38	5.1	$34

Granted	22		7.33
Exercised	(59	)	6.70		68
Expired or forfeited	(159	)	11.98
Outstanding on January 31, 2017	524		11.55	4.5	534

Options exercisable on January 31, 2017	450		$11.92	3.9	465

Exercised	(35	)	6.80		45
Expired or forfeited	(131	)	18.54
Outstanding on January 31, 2018	358		9.44	4.0	482

Options exercisable on January 31, 2018	327		$9.56	3.7	$433

The weighted average fair value of options granted, net of options surrendered, during 2016 was estimated at $2.85 per share on the date of grant.



Unvested options outstanding (shares in thousands)	Options		Weighted-average grant date fair value	Aggregate intrinsic value
Outstanding on January 31, 2017	74		$9.31	$69
Granted	—		—
Vested	(36	)
Expired or forfeited	(7	)	10.43
Outstanding on January 31, 2018	31		$8.24	$50

Based on historical experience the Company expects 90% of these options to vest.

As of January 31, 2018, there was $0.1 million of unrecognized compensation cost related to unvested stock options granted under the plans. That cost is expected to be recognized over the weighted-average period of 1 year.

(In thousands)

Stock-based compensation expense

Restricted stock based compensation expense