5.	Equity Compensation

The amount of stock-based compensation expense and the line items in which those amounts are included in our Condensed Consolidated Statements of Income and the related estimated income tax benefit recognized in the periods indicated were as follows:


	Three Months Ended June 30,						Six Months Ended June 30,
	2015			2014			2015			2014
Cost of educational services	$	703		$	1,119		$	1,645		$	2,337
Student services and administrative expenses		661			1,192			1,615			2,525

Total stock-based compensation expense	$	1,364		$	2,311		$	3,260		$	4,862
Income tax (benefit)	$	(525	)	$	(890	)	$	(1,255	)	$	(1,872	)

As of June 30, 2015, we estimated that pre-tax compensation expense for unvested stock-based compensation grants in the amount of approximately $6,900, net of estimated forfeitures, will be recognized in future periods. This expense will be recognized over the remaining service period applicable to the grantees which, on a weighted-average basis, is approximately 1.5 years.

The stock options granted, forfeited, exercised and expired in the period indicated were as follows:


	Six Months Ended June 30, 2015
	# of Shares			Weighted Average Exercise Price		Aggregate Exercise Price			Weighted Average Remaining Contractual Term		Aggregate Intrinsic Value ⁽¹⁾
Outstanding at beginning of period		1,153,273		$	76.92	$	88,711
Granted		121,208		$	4.91		595
Forfeited		(10,001	)	$	25.10		(251	)
Exercised		0		$	0		0
Expired		(138,773	)	$	86.40		(11,990	)

Outstanding at end of period		1,125,707		$	68.46	$	77,065			2.1	$	0

Exercisable at end of period		853,660		$	85.10	$	72,648			1.8	$	0

(1)

The aggregate intrinsic value of the stock options was calculated by identifying those stock options that had a lower exercise price than the closing market price of our common stock on June 30, 2015 and multiplying the difference between the closing market price of our common stock and the exercise price of each of those stock options by the number of shares subject to those stock options that were outstanding or exercisable, as applicable. Since the closing market price of our common stock on June 30, 2015 was lower than the exercise price of all outstanding stock options and exercisable stock options, the aggregate intrinsic value of the stock options was zero.

The following table sets forth information regarding the stock options granted and exercised in the periods indicated:


	Three Months Ended June 30,				Six Months Ended June 30,
	2015		2014		2015		2014
Shares subject to stock options granted		121,208		0		121,208		168,500
Weighted average grant date fair value per share	$	3.65	$	0	$	3.65	$	12.62
Shares subject to stock options exercised		0		0		0		0
Intrinsic value of stock options exercised	$	0	$	0	$	0	$	0
Proceeds received from stock options exercised	$	0	$	0	$	0	$	0
Tax benefits realized from stock options exercised	$	0	$	0	$	0	$	0

The intrinsic value of a stock option is the difference between the fair market value of the stock and the option exercise price.

The fair value of each stock option grant was estimated on the date of grant using the following assumptions in the periods indicated:


	Three Months Ended June 30,					Six Months Ended June 30,
	2015			2014		2015			2014
Risk-free interest rates		1.55	%		Not applicable		1.55	%		1.32	%
Expected lives (in years)		4.7			Not applicable		4.7			4.7
Volatility		107	%		Not applicable		107	%		55	%
Dividend yield		None			Not applicable		None			None

For the three months ended June 30, 2014, the assumptions listed above were not applicable because we did not grant any stock options in that period.

The following table sets forth the number of restricted stock units (“RSUs”) that were granted, forfeited and vested in the period indicated:


	Six Months Ended June 30, 2015
	# of RSUs			Weighted Average Grant Date Fair Value
Unvested at beginning of period		831,307		$	30.17
Granted		399,720		$	4.93
Forfeited		(54,269	)	$	23.00
Vested		(198,478	)	$	61.87

Unvested at end of period		978,280		$	13.83

The total fair market value of the RSUs that vested and were settled in shares of our common stock was:

•

$123 in the three months ended June 30, 2015;

•

$18 in the three months ended June 30, 2014;

•

$1,383 in the six months ended June 30, 2015; and

•

$1,942 in the six months ended June 30, 2014.