Share Based Compensation

12 Months Ended

Jan. 31, 2012

Share-based Compensation [Abstract]

Share Based Compensation

NOTE 11 SHARE-BASED COMPENSATION

At January 31, 2012, Raven had two shareholder approved share-based compensation plans, which are described below. The compensation cost and related income tax benefit for these plans were as follows:

	For the years ended January 31
	2012		2011		2010
Stock compensation cost	$	1,922	$	1,179	$	1,034
Tax benefit	547		272		185

Compensation cost capitalized as part of inventory is not significant.

Stock Option and Compensation Plans

The 2010 Stock Incentive Plan is administered by the Personnel and Compensation Committee of the board of directors and allows for stock awards and incentive or non-qualified options with terms not to exceed 10 years. There were 500 shares of common stock reserved for grant, of which 202 were remaining at January 31, 2012. Fiscal 2012 and fiscal 2010 compensation cost includes $64 and $144 of expense recognized as a result of 1.0 and 4.8 share stock awards, respectively. No stock award was issued in fiscal 2011.

Options are granted with exercise prices not less than market value at the date of grant. The stock options vest over a four-year period and expire after five years. Options contain retirement and change in control provisions that may accelerate the vesting period. The fair value of each option grant is estimated on the date of grant using the Black-Scholes option pricing model. The company uses historical data to estimate option exercise and employee termination within the valuation model.

The fair value of each option grant is estimated on the date of grant using the Black-Scholes option pricing model, with the following weighted average assumptions by grant year:

	For the years ended January 31
	2012			2011			2010
Risk-free interest rate	0.67		%	1.46		%	2.03		%
Expected dividend yield	1.20		%	1.49		%	1.73		%
Expected volatility factor	51.44		%	49.33		%	49.69		%
Expected option term (in years)	4.00			4.50			4.50
Weighted average grant date fair value	$	22.11		$	15.70		$	11.28

Outstanding stock options as of January 31, 2012 and activity for the year then ended are presented below:

	Number of options		Weighted average exercise price		Aggregate intrinsic value		Weighted average remaining contractual term (years)
Outstanding, January 31, 2011	445		$	33.86
Granted	136		59.99
Exercised	(84	)	29.74
Forfeited	(1	)	28.01
Outstanding, January 31, 2012	496		$	41.73	$	11,474	3.27
Exercisable, January 31, 2012	181		$	32.04	$	5,956	2.16

The intrinsic value of a stock award is the amount by which the fair value of the underlying stock exceeds the exercise price of the award. The total intrinsic value of options exercised was $2,362, $1,102 and $314 during the years ended January 31, 2012, 2011 and 2010, respectively. As of January 31, 2012, the total compensation cost for non-vested awards not yet recognized in the company's statements of income was $4,360, net of the effect of estimated forfeitures. This amount is expected to be recognized over a weighted average period of 2.96 years.

Deferred Stock Compensation Plan for Directors

The Deferred Stock Compensation Plan for Directors of Raven Industries, Inc. is administered by the Governance Committee of the board of directors. Under the plan, a stock unit is the right to receive one share of the company's common stock as deferred compensation, to be distributed from an account established by the company in the name of the non-employee director. Stock units have the same value as a share of common stock but cannot be sold. Stock units are a component of the company's equity. The plan reserves 50 common shares for the conversion of stock units into common stock after directors retire from the board.

Stock units granted under this plan vest immediately and are expensed at the date of grant. Stock units are also accumulated if a director elects to defer the annual retainer paid for board service. When dividends are paid on the company's common shares, stock units are added to the directors' balances and a corresponding amount is removed from retained earnings. The intrinsic value of a stock unit is the fair value of the underlying shares.

Outstanding stock units as of January 31, 2012 and changes during the year then ended are presented below:

	Number of units		Weighted average price
Outstanding, January 31, 2011	27		$	47.24
Granted	3		51.89
Deferred retainers	1		51.89
Dividends	1		58.62
Converted into common shares	(7	)	56.82
Outstanding, January 31, 2012	25		$	64.89