XML 28 R18.htm IDEA: XBRL DOCUMENT

Note 12 - Stock-based Compensation

6 Months Ended

Jul. 31, 2021

Share-based Payment Arrangement [Text Block]

12.

STOCK-BASED COMPENSATION

The Company’s equity awards consist of RSUs, PSUs and SARs. For a description of the Company’s stock-based compensation plans, see Note 6 “Stock-Based Compensation” in Notes to Consolidated Financial Statements included in the Annual Report on Form 10-K for the year ended January 31, 2021.

Stock-Based Compensation

The following table sets forth reported stock-based compensation expense for the three and six months ended July 31, 2021 and 2020:

	Three Months Ended July 31,				Six Months Ended July 31,
	2021		2020		2021		2020
	(in thousands)				(in thousands)
Cost of subscription	$	127	$	139	$	239	$	246
Cost of maintenance		120		120		247		229
Cost of professional services		392		412		777		749
Sales and marketing		669		720		1,438		1,228
Research and development		559		560		1,168		1,011
General and administrative		2,878		2,000		4,513		2,893
Total stock-based compensation expense	$	4,745	$	3,951	$	8,382	$	6,356

RSU Information

The estimated fair value of RSUs was calculated based on the closing price of the Company’s common stock on the date of grant, reduced by the present value of dividends foregone during the vesting period.

The following table summarizes the activity for RSUs for the six months ended July 31, 2021:

	RSUs (in thousands)			Weighted Average Grant Date Fair Value
Restricted stock at January 31, 2021		698		$	41.56
Granted		119			67.87
Released (1)		(259	)		41.92
Forfeited		(21	)		41.92
Restricted stock at July 31, 2021		537		$	47.20

(1)

The number of RSUs released includes shares withheld on behalf of employees to satisfy the minimum statutory tax withholding requirements.

The Company withholds a portion of the released shares as consideration for the Company’s payment of applicable employee income taxes. During the three months ended July 31, 2021, the Company withheld 80,000 shares for payment of these taxes at a value of $6.2 million. During the six months ended July 31, 2021, the Company withheld 83,000 shares for payment of these taxes at a value of $6.4 million.

Total unrecognized compensation cost related to RSUs was approximately $23.6 million as of July 31, 2021. This cost is expected to be recognized over a weighted-average period of approximately 2.6 years.

PSU Information

The following table summarizes the activity for PSUs for the six months ended July 31, 2021:

	PSUs (in thousands)			Weighted Average Grant Date Fair Value
Performance stock units at January 31, 2021		153		$	40.26
Granted		69			63.10
Released (1)		(56	)		40.54
Forfeited		(32	)		39.84
Performance stock units at July 31, 2021		134		$	52.03

(1)

The number of PSUs released includes shares withheld on behalf of employees to satisfy the minimum statutory tax withholding requirements.

The Company withholds a portion of the released shares as consideration for the Company’s payment of applicable employee income taxes. During the three and six months ended July 31, 2021, the Company withheld 23,000 shares for payment of these taxes at a value of $1.8 million.

Total unrecognized compensation cost related to PSUs was approximately $4.4 million as of July 31, 2021. This cost is expected to be recognized over a period of approximately 1.3 years.

SAR Information

The following table summarizes the activity for outstanding SARs for the six months ended July 31, 2021:

	SARs (in thousands)			Weighted Average Exercise Price per Share		Weighted Average Remaining Contractual Term (years)		Aggregate Intrinsic Value (in thousands)
Outstanding at January 31, 2021		1,144		$	27.01
Granted		-			-
Exercised		(194	)		11.61
Expired		-			-
Forfeited		-			-
Outstanding at July 31, 2021		950		$	30.16		2.9	$	36,286
Vested and exercisable at July 31, 2021		903		$	28.93		2.8	$	35,469

The aggregate intrinsic value in the table above represents the total pretax intrinsic value (the aggregate difference between the closing stock price of the Company’s common stock based on the last trading day as of July 31, 2021, and the exercise price for in-the-money SARs) that would have been received by the holders if all SARs had been exercised on July 31, 2021. The total intrinsic value of SARs exercised in the six months ended July 31, 2021 was $11.8 million.

The number of SARs exercised includes shares withheld on behalf of employees to satisfy minimum statutory tax withholding requirements. During the three and six months ended July 31, 2021, the Company withheld 69,000 shares for payment of these taxes at a value of $5.1 million.

At July 31, 2021, there was approximately $0.7 million of total unrecognized compensation cost related to unvested SARs. This cost is expected to be recognized over a weighted-average period of approximately 0.9 years.