Share-Based Compensation

3 Months Ended

Mar. 31, 2017

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

8. Share-Based Compensation

Incentive Plan

Restricted Stock

During the three months ended March 31, 2017, the University granted 187 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 three months ended March 31, 2017, the University withheld 147 shares of common stock in lieu of taxes at a cost of $9,516 on the restricted stock vesting dates.

A summary of the activity related to restricted stock granted under the University’s 2008 Equity Incentive Plan (“Incentive Plan”) since December 31, 2016 is as follows:


	Total Shares			Weighted Average Grant Date Fair Value per Share
Outstanding as of December 31, 2016		993		$	38.32
Granted		187		$	70.22
Vested		(360	)	$	32.36
Forfeited, canceled or expired		(13	)	$	40.18

Outstanding as of March 31, 2017		807		$	48.34

Stock Options

During the three months ended March 31, 2017, no options were granted. A summary of the activity since December 31, 2016 related to stock options granted under the University’s Incentive Plan 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, 2016		1,272		$	15.26
Granted		—		$	—
Exercised		(243	)	$	12.83
Forfeited, canceled or expired		—		$	—

Outstanding as of March 31, 2017		1,029		$	15.84		2.95	$	57,369

Exercisable as of March 31, 2017		1,029		$	15.84		2.95	$	57,369

(1)	Aggregate intrinsic value represents the value of the University’s closing stock price on March 31, 2017 ($71.61) 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, 2017 and 2016 related to restricted stock and stock options granted:


	2017			2016
Instructional costs and services	$	1,863		$	1,750
Admissions advisory and related expenses		22			49
Marketing and promotional		32			30
General and administrative		1,014			1,069

Share-based compensation expense included in operating expenses		2,931			2,898
Tax effect of share-based compensation		(1,172	)		(1,159	)

Share-based compensation expense, net of tax	$	1,759		$	1,739

- 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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