Stockholders' Equity and Stock-based Compensation (Tables)

12 Months Ended

Jul. 31, 2013

Stockholders' Equity and Stock-based Compensation [Abstract]

Stock-based compensation expense

Stock-based compensation expense related to all employee and non-employee stock-based awards is as follows:

	Fiscal years ended July 31,
	2013		2012		2011
Stock-based compensation expense:	(in thousands)
Cost of maintenance revenues	$	1,217	$	379	$	120
Cost of services revenues	12,493		3,741		1,264
Research and development	9,131		3,759		1,372
Sales and marketing	5,970		2,936		903
General and administrative	9,588		7,443		3,021
Total stock-based compensation expense	38,399		18,258		6,680
Tax benefit from stock-based compensation	12,933		7,137		2,646
Total stock-based compensation expense, net of tax effect	$	25,466	$	11,121	$	4,034

Schedule of Unrecognized Compensation Cost, Nonvested Awards

As of July 31, 2013, total unrecognized compensation cost, adjusted for estimated forfeitures, was as follows:

	As of July 31, 2013
	Unrecognized Expense		Average Expected Recognition Period
	(in thousands)		(in years)
Restricted stock units	$	41,135	1.3
Stock options	2,699		1.0
	$	43,834

Schedule of Share-based Compensation, Restricted Stock Units Award Activity

RSU activity under the Company’s equity incentive plans is as follows:

	RSUs Outstanding
	Number of RSUs Outstanding		Weighted Average Grant Date Fair Value
Balance as of July 31, 2012	3,992,177		$	8.00
Granted	2,024,221		33.68
Released	(1,623,182	)	9.88
Canceled	(365,615	)	17.72
Balance as of July 31, 2013	4,027,601		$	19.27

Schedule of Share-based Compensation, Stock options, Activity

Stock option activity under the Company’s equity incentive plans is as follows:

	Number of Stock Options Outstanding		Weighted Average Exercise Price		Weighted Average Remaining Contractual Life	Aggregate Intrinsic Value (1)
					(in years)	(in thousands)
Balance as of July 31, 2012	6,486,641		$	3.74	6.1	$	142,321
Granted	377,412		32.36
Exercised	(2,905,296	)	3.12
Canceled	(195,529	)	10.55
Balance as of July 31, 2013	3,763,228		$	6.74	5.7	$	139,315
Vested and expected to vest as of July 31, 2013	3,714,254		$	6.56	5.7	$	138,163
Exercisable as of July 31, 2013	3,413,948		$	4.47	5.4	$	134,139

⁽¹⁾  Aggregate intrinsic value represents the difference between the exercise price of the option and the Company’s closing stock price of $43.76 and $25.66 on July 31, 2013 and July 31, 2012, respectively.

Options outstanding by exercise price range

Additional information regarding options outstanding as of July 31, 2013 is as follows:

	Options Outstanding				Options Exercisable
Exercise Price	Number of Options Outstanding	Remaining Contractual Life (Years)	Exercise Price per Share		Number of Options Exercisable	Exercise Price per Share
$0.16—1.00	446,350	2.4	$	0.54	446,350	$	0.54
1.25—2.56	107,600	3.1	2.02		107,600	2.02
2.74	752,484	4.0	2.74		752,484	2.74
3.50	203,068	4.7	3.50		203,068	3.50
3.73	604,396	5.6	3.73		595,269	3.73
3.92	510,888	6.4	3.92		499,488	3.92
4.50—7.50	539,978	7.7	6.90		518,994	6.94
8.65—11.00	223,959	8.1	8.87		221,250	8.88
11.00--33.00	322,490	9.1	31.84		54,930	32.25
35.00 and over	52,015	9.3	36.42		14,515	35
	3,763,228	5.7	$	6.74	3,413,948	$	4.47

Stock options valuation assumptions

The fair value of the employee stock options were estimated on the grant dates using a Black-Scholes option-pricing model with the following weighted average assumptions:

	Fiscal years ended July 31,
	2013	2012	2011
Expected life (in years)	5.1 - 6.1	5.3 - 6.3	6.03
Risk-free interest rate	0.6% - 1.2%	1.2% - 1.5%	1.9%
Expected volatility	45.1% - 48.7%	44.1% - 46.4%	46.1%
Expected dividend yield	—%	—%	—%

Common Stock Reserved for Issuance

As of July 31, 2013 and 2012, the Company had reserved shares of common stock, on an as-if-converted basis, for future issuance as follows:

	July 31, 2013	July 31, 2012
Exercise of stock options to purchase common stock	3,763,228	6,486,641
Vesting of restricted stock units	4,027,601	3,992,177
Issuances of shares available under stock plans	9,194,058	7,655,332
Total common stock reserved for issuance	16,984,887	18,134,150