Equity Compensation

3 Months Ended

Mar. 31, 2016

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

4.	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 Operations and the related estimated income tax benefit recognized in the periods indicated were as follows:


	Three Months Ended March 31,
	2016			2015
Cost of educational services	$	708		$	942
Student services and administrative expenses		519			954

Total stock-based compensation expense	$	1,227		$	1,896
Income tax (benefit)	$	(472	)	$	(730	)

As of March 31, 2016, we estimated that pre-tax compensation expense for unvested stock-based compensation grants in the amount of approximately $3,900, 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 1.6 years.

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


	Three Months Ended March 31, 2016
	# of Shares			Weighted Average Exercise Price		Aggregate Exercise Price			Weighted Average Remaining Contractual Term		Aggregate Intrinsic Value ⁽¹⁾
Outstanding at beginning of period		1,088,208		$	70.21	$	76,405
Granted		159,000		$	3.57		568
Forfeited		0		$	0		0
Exercised		0		$	0		0
Expired		(188,500	)	$	121.56		(22,914	)

Outstanding at end of period		1,058,708		$	51.06	$	54,059			1.9	$	0

Exercisable at end of period		736,061		$	69.17	$	50,913			1.7	$	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 March 31, 2016 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 March 31, 2016 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 March 31,
	2016		2015
Shares subject to stock options granted		159,000		0
Weighted average grant date fair value per share	$	2.09	$	0
Shares subject to stock options exercised		0		0
Intrinsic value of stock options exercised	$	0	$	0
Proceeds received from stock options exercised	$	0	$	0
Tax benefits realized from stock options exercised	$	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 March 31,
	2016			2015
Risk-free interest rates		1.3	%	Not applicable
Expected lives (in years)		4.8		Not applicable
Volatility		75.0	%	Not applicable
Dividend yield		None		Not applicable

For the three months ended March 31, 2015, 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:


	Three Months Ended March 31, 2016
	# of RSUs			Weighted Average Grant Date Fair Value
Unvested at beginning of period		793,019		$	14.18
Granted		411,224			3.56
Forfeited		(47,837	)		10.21
Vested		(37,350	)		18.23

Unvested at end of period		1,119,056		$	10.31

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

•

$99 in the three months ended March 31, 2016; and

•

$1,260 in the three months ended March 31, 2015.