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Share-Based Compensation
 3 Months Ended
Mar. 31, 2013
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]  
Share-Based Compensation

8. Share-Based Compensation

Adoption of Equity Plans

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 9,847 shares effective January 1, 2013. 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.

Incentive Plan

Restricted Stock

During the three months ended March 31, 2013, the University granted 572 shares of common stock with a service vesting condition to certain of its executives, officers, faculty and employees. The restricted shares have voting rights and vest in five annual installments of 20% starting on March 1, 2014 and each of the four anniversaries of the vesting date following the date of grant. Upon vesting, shares will be held in lieu of taxes equivalent to the minimum statutory tax withholding required to be paid when the restricted stock vests. During the three months ended March 31, 2013, the University withheld 39 shares of common stock in lieu of taxes at a cost of $937 on the restricted stock vesting date.

A summary of the activity related to restricted stock granted under the University’s Incentive Plan since December 31, 2012 is as follows:

 

     Total
Shares		     Weighted Average Grant  Date
Fair Value per Share		  

Outstanding as of December 31, 2012

      553      $ 17.04   
  

 

 

    

Granted

      572      $ 24.03   

Vested

      (104 )    $ 17.03   

Forfeited, canceled or expired

      (2 )    $ 17.03   
  

 

 

    

Outstanding as of March 31, 2013

      1,019      $ 20.96   
  

 

 

    

 

Stock Options

During the three months ended March 31, 2013, the University granted time vested options to purchase shares of common stock with an exercise price equal to the fair market value on the date of grant to an employee. The time vested options vest ratably over a period of four years and expire ten years from the date of grant. No options were granted in 2012. A summary of the activity related to stock options granted under the University’s Incentive Plan since December 31, 2012 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, 2012

      4,229      $ 14.57         
  

 

 

          

Granted

      25      $ 24.97         

Exercised

      (459 )    $ 12.75         

Forfeited, canceled or expired

      (19 )    $ 16.21         
  

 

 

          

Outstanding as of March 31, 2013

      3,776      $ 14.85         6.54       $ 39,804   
  

 

 

    

 

 

     

 

 

     

 

 

  

Exercisable as of March 31, 2013

      2,247      $ 14.23         6.22       $ 25,077   
  

 

 

    

 

 

     

 

 

     

 

 

  

Available for issuance as of March 31, 2013

      2,233           
  

 

 

          

 

(1) Aggregate intrinsic value represents the value of the University’s closing stock price on March 28, 2012 ($25.39) 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 three months ended March 31, 2013 and 2012 related to restricted stock and stock options granted:

 

     2013     2012  

Instructional costs and services

    $ 1,100      $ 825   

Admissions advisory and related

      29        35   

Marketing and promotional

      49        27   

General and administrative

      992        807   
  

 

 

    

 

 

  

Share-based compensation expense included in operating expenses

      2,170        1,694   

Tax effect of share-based compensation

      (868 )      (678 ) 
  

 

 

    

 

 

  

Share-based compensation expense, net of tax

    $ 1,302      $ 1,016