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Share-Based Compensation
 9 Months Ended
Sep. 30, 2012
Share-Based Compensation

8. Share-Based Compensation

On September 27, 2008 the University’s shareholders approved the adoption of the 2008 Equity Incentive Plan (“Incentive Plan”) and the 2008 Employee Stock Purchase (“ESPP”). A total of 4,200 shares of the University’s common stock was originally authorized for issuance under the Incentive Plan. On January 1 of each subsequent year in accordance with the terms of the Incentive Plan, the number of shares authorized for issuance under the Incentive Plan automatically increases by 2.5% of the number of shares of common stock issued and outstanding on the previous December 31, raising the total number of shares of common stock currently authorized for issuance under the Incentive Plan to 8,729 shares effective January 1, 2012. Although the ESPP has not yet been implemented, a total of 1,050 shares of the University’s common stock has been authorized for sale under the ESPP.

A summary of the activity related to stock options granted under the University’s Incentive Plan since December 31, 2011 is as follows:

 

     Summary of Stock Options Outstanding  
     Total
Shares		     Weighted
Average
Exercise
Price per
Share		      Weighted
Average
Remaining
Contractual
Term (Years)		      Aggregate
Intrinsic
Value ($)(1)		  

Outstanding as of December 31, 2011

      4,964        14.47         
  

 

 

          

Granted

      —          —           

Exercised

      (339 )      12.80         

Forfeited, canceled or expired

      (122 )      17.65         
  

 

 

          

Outstanding as of September 30, 2012

      4,503      $ 14.51         6.94       $ 40,618   
  

 

 

    

 

 

     

 

 

     

 

 

  

Exercisable as of September 30, 2012

      2,153      $ 13.76         6.55       $ 21,031   
  

 

 

    

 

 

     

 

 

     

 

 

  

Available for issuance as of September 30, 2012

      2,767           
  

 

 

          

 

(1) Aggregate intrinsic value represents the value of the University’s closing stock price on September 28, 2012 ($23.53) in excess of the exercise price multiplied by the number of options outstanding or exercisable.

 

Share-based Compensation Expense

The table below outlines share-based compensation expense for the nine months ended September 30, 2012 and 2011 related to restricted stock and stock options granted:

 

     2012     2011  

Instructional costs and services

    $ 2,807      $ 2,152   

Selling and promotional

      281        232   

General and administrative

      2,660        2,413   
  

 

 

    

 

 

  

Share-based compensation expense included in operating expenses

      5,748        4,797   

Tax effect of share-based compensation

      (2,299 )      (1,919 ) 
  

 

 

    

 

 

  

Share-based compensation expense, net of tax

    $ 3,449      $ 2,878   
  

 

 

    

 

 

  

A summary of the activity related to restricted stock granted under the University’s Incentive Plan since December 31, 2011 is as follows:

 

     Total
Shares		     Weighted Average
Grant Date
Fair Value per
Share		  

Outstanding as of December 31, 2011

      6      $ 13.88   
  

 

 

    

Granted

      563        17.04   

Vested

      (6 )      13.88   

Forfeited, canceled or expired

      (7 )      17.03   
  

 

 

    

Outstanding as of September 30, 2012

      556      $ 17.04