Share-Based Compensation

3 Months Ended

Mar. 31, 2015

Disclosure of Compensation Related Costs, Share-based Payments [Abstract]

8. Share-Based Compensation

Incentive Plan

Restricted Stock

During the three months ended March 31, 2015, the University granted 313 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, 2016 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, 2015, the University withheld 91 shares of common stock in lieu of taxes at a cost of $4,178 on the restricted stock vesting dates.

A summary of the activity related to restricted stock granted under the University’s Incentive Plan since December 31, 2014 is as follows:


	Total Shares			Weighted Average Grant Date Fair Value per Share
Outstanding as of December 31, 2014		1,033		$	28.75
Granted		313		$	45.75
Vested		(257	)	$	26.47
Forfeited, canceled or expired		(3	)	$	25.82

Outstanding as of March 31, 2015		1,086		$	34.19

Stock Options

During the three months ended March 31, 2015, no options were granted. A summary of the activity related to stock options granted under the University’s Incentive Plan since December 31, 2014 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, 2014		2,452		$	14.83
Granted		—		$	—
Exercised		(105	)	$	16.57
Forfeited, canceled or expired		(3	)	$	16.90

Outstanding as of March 31, 2015		2,344		$	14.75		4.60	$	66,930

Exercisable as of March 31, 2015		2,116		$	14.58		4.45	$	60,783

Available for issuance as of March 31, 2015		1,927

(1)	Aggregate intrinsic value represents the value of the University’s closing stock price on March 31, 2015 ($43.30) in excess of the exercise price multiplied by the number of shares underlying options outstanding or exercisable, as applicable.

Share-based Compensation Expense

The table below outlines share-based compensation expense for the three months ended March 31, 2015 and 2014 related to restricted stock and stock options granted:


	2015			2014
Instructional costs and services	$	1,549		$	1,312
Admissions advisory and related expenses		44			37
Marketing and promotional		46			60
General and administrative		964			795

Share-based compensation expense included in operating expenses		2,603			2,204
Tax effect of share-based compensation		(1,041	)		(882	)

Share-based compensation expense, net of tax	$	1,562		$	1,322

- Definition

The entire disclosure for compensation-related costs for equity-based compensation, which may include disclosure of policies, compensation plan details, allocation of equity compensation, incentive distributions, equity-based arrangements to obtain goods and services, deferred compensation arrangements, employee stock ownership plan details and employee stock purchase plan details.

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