Stock-Based Compensation (Notes)

9 Months Ended

Oct. 31, 2018

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

Stock-Based Compensation

NOTE 9 — STOCK-BASED COMPENSATION

For the nine months ended October 31, 2018 and 2017, the Company recorded $23.7 million and $21.2 million, respectively, of stock-based compensation expense.

The 2018 Equity Incentive Plan was approved by the Company’s shareholders in June 2018 and includes 2.0 million shares available for grant. The Company is authorized to award officers, employees, and non-employee members of the Board of Directors restricted stock, options to purchase common stock, stock appreciation rights and performance awards that are dependent upon achievement of specified performance goals. Equity-based compensation awards have a maximum term of 10 years, unless a shorter period is specified by the Compensation Committee of the Board of Directors ("Compensation Committee") or is required under local law. Awards under the plan are priced as determined by the Compensation Committee and are required to be priced at, or above, the fair market value of the Company’s common stock on the date of grant. Awards generally vest between one and three years from the date of grant. The Company’s policy is to utilize shares of its treasury stock, to the extent available, to satisfy its obligation to issue shares upon the exercise of awards.

Restricted stock units

A summary of the Company’s restricted stock activity for the nine months ended October 31, 2018 is as follows:

	Shares
Nonvested at January 31, 2018	700,532
Granted	278,530
Vested	(262,485	)
Canceled	(52,828	)
Nonvested at October 31, 2018	663,749

Performance based restricted stock units

The Company's performance based restricted stock unit awards are subject to vesting conditions, including meeting specified cumulative performance objectives over a period of three years. Each performance based award recipient could vest in 0% to 150% of the target shares granted, contingent on the achievement of the Company's financial performance metrics. A summary of the Company’s performance based restricted stock activity, assuming maximum achievement, for the nine months ended October 31, 2018 is as follows:

	Shares
Nonvested at January 31, 2018	170,685
Granted	153,719
Canceled	(27,258	)
Nonvested at October 31, 2018	297,146