Share-Based Compensation

6 Months Ended

Jun. 30, 2016

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

8. Share-Based Compensation

Incentive Plan

Restricted Stock

During the six months ended June 30, 2016, the University granted 263 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%, with this first installment vesting in March of the calendar year following the date of grant (the “first vesting date”) and on each of the four anniversaries of the first vesting date. 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, 2016, the University withheld 113 shares of common stock in lieu of taxes at a cost of $4,642 on the restricted stock vesting dates. In June 2016, the University granted 11 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 2008 Equity Incentive Plan (“Incentive Plan”) since December 31, 2015 is as follows:


	Total Shares			Weighted Average Grant Date Fair Value per Share
Outstanding as of December 31, 2015		1,056		$	34.30
Granted		274		$	44.46
Vested		(324	)	$	30.44
Forfeited, canceled or expired		(2	)	$	38.34


Outstanding as of June 30, 2016		1,004		$	38.32

Stock Options

During the six months ended June 30, 2016, no options were granted. A summary of the activity related to stock options granted under the University’s Incentive Plan since December 31, 2015 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, 2015		2,220		$	14.71
Granted		—		$	—
Exercised		(493	)	$	14.17
Forfeited, canceled or expired		—		$	—


Outstanding as of June 30, 2016		1,727		$	14.87		3.36	$	43,270


Exercisable as of June 30, 2016		1,721		$	14.83		3.35	$	43,182


Available for issuance as of June 30, 2016		1,794

(1)	Aggregate intrinsic value represents the value of the University’s closing stock price on June 30, 2016 ($39.92) 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, 2016 and 2015 related to restricted stock and stock options granted:


	2016			2015
Instructional costs and services	$	3,544		$	3,304
Admissions advisory and related expenses		105			93
Marketing and promotional		60			93
General and administrative		2,122			2,022


Share-based compensation expense included in operating expenses		5,831			5,512
Tax effect of share-based compensation		(2,332	)		(2,205	)


Share-based compensation expense, net of tax	$	3,499		$	3,307

- 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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