Share-Based Compensation

6 Months Ended

Jun. 30, 2015

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

8. Share-Based Compensation

Incentive Plan

Restricted Stock

During the six months ended June 30, 2015, the University granted 315 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 six months ended June 30, 2015, the University withheld 92 shares of common stock in lieu of taxes at a cost of $4,230 on the restricted stock vesting dates. In May 2015, the University granted 9 shares of common stock to certain of the non-employee members of the University’s board of directors. The restricted shares granted to these directors have voting rights and vest on the earlier of (a) the one year anniversary of the date of grant or (b) immediately prior to the following year’s annual stockholders’ meeting.

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		324		$	45.66
Vested		(270	)	$	26.92
Forfeited, canceled or expired		(10	)	$	27.88

Outstanding as of June 30, 2015		1,077		$	34.30

Stock Options

During the six months ended June 30, 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		(167	)	$	16.14
Forfeited, canceled or expired		(7	)	$	15.98

Outstanding as of June 30, 2015		2,278		$	14.73		4.34	$	63,018

Exercisable as of June 30, 2015		2,061		$	14.59		4.19	$	57,306

Available for issuance as of June 30, 2015		1,928

(1)	Aggregate intrinsic value represents the value of the University’s closing stock price on June 30, 2015 ($42.40) 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 six months ended June 30, 2015 and 2014 related to restricted stock and stock options granted:


	2015			2014
Instructional costs and services	$	3,304		$	2,874
Admissions advisory and related expenses		93			80
Marketing and promotional		93			131
General and administrative		2,022			1,752

Share-based compensation expense included in operating expenses		5,512			4,837
Tax effect of share-based compensation		(2,205	)		(1,935	)

Share-based compensation expense, net of tax	$	3,307		$	2,902