Stockholders' Equity and Stock-based Compensation (Tables)

9 Months Ended

Apr. 30, 2017

Stockholders' Equity and Stock-based Compensation [Abstract]

Stock-based compensation expense related to stock-based awards is included in the Company’s condensed consolidated statements of operations as follows:



	Three Months Ended April 30,					Nine Months Ended April 30,
	2017			2016		2017			2016
	(in thousands)
Total cost of stock-based compensation	$	17,433		$	16,193	$	54,344		$	47,885
Impact of capitalized stock-based compensation	(236		)	—		(683		)	—
Amount charged to income	$	17,197		$	16,193	$	53,661		$	47,885

Stock-based compensation cost charged to the following expense categories:
Cost of license revenues	$	90		$	107	$	231		$	299
Cost of maintenance revenues	416			388		1,265			1,107
Cost of services revenues	4,459			4,450		13,969			13,486
Research and development	4,508			3,889		13,625			11,472
Sales and marketing	3,992			3,602		12,498			10,648
General and administrative	3,732			3,757		12,073			10,873
Total stock-based compensation expenses	$	17,197		$	16,193	$	53,661		$	47,885

Unrecognized compensation cost, adjusted for estimated forfeitures

As of April 30, 2017, total unamortized stock-based compensation cost, adjusted for estimated forfeitures, was as follows:



	As of April 30, 2017
	Unrecognized Expense		Weighted Average Expected Recognition Period
	(in thousands)		(in years)
Stock options	$	1,367	1.2
Restricted stock units	129,574		2.5
	$	130,941

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

RSU, PSU and TSR PSU activity under the Company’s equity incentive plans is as follows:



	RSUs Outstanding
	Number of RSUs Outstanding		Weighted Average Grant Date Fair Value		Aggregate Intrinsic Value (in thousands) ⁽¹⁾
Balance as of July 31, 2016	2,727,724		$	50.08	$	167,673
Granted	1,434,943		$	60.66
Released	(1,067,232	)	$	48.89	$	60,842
Canceled	(204,874	)	$	53.01
Balance as of April 30, 2017	2,890,561		$	55.56	$	177,741
Expected to vest as of April 30, 2017	2,691,764		$	55.33	$	165,517

Schedule of Share-based Compensation, Stock Options, Activity

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



	Stock Options Outstanding
	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, 2016	1,158,572		$	15.45	4.0	$	53,316
Granted	—
Exercised	(271,382	)	$	12.60		$	12,132
Canceled	—
Balance as of April 30, 2017	887,190		$	16.32	3.2	$	40,070
Vested and expected to vest as of April 30, 2017	885,781		$	16.27	3.2	$	40,052
Exercisable as of April 30, 2017	810,973		$	13.38	2.8	$	39,015


⁽¹⁾	Aggregate intrinsic value at each period end represents the difference between the Company's closing stock prices of $61.49 and $61.47 on April 30, 2017 and July 31, 2016, respectively, and the exercise price of outstanding options.

Schedule of Valuation Assumptions Using Monte Carlo Simulation Model



	Three Months Ended April 30,		Nine Months Ended April 30,
	2017	2016	2017	2016
Expected term (in years)	*	*	2.66 - 2.88	*
Risk-free interest rate	*	*	0.89% - 1.34%	*
Expected volatility of the Company	*	*	30.2% - 31.5%	*
Average expected volatility of the peer companies in the index	*	*	36.9% - 37.0%	*
Expected dividend yield	*	*	—%	*

* There were no TSR PSUs granted during the three months ended April 30, 2017 and no TSR PSUs granted in the prior fiscal year.

Common Stock Reserved for Issuance

As of April 30, 2017 and July 31, 2016, the Company had reserved shares of common stock for future issuance as follows:



	April 30, 2017	July 31, 2016
Exercise of stock options to purchase common stock	887,190	1,158,572
Vesting of restricted stock units	2,890,561	2,727,724
Shares available under stock plans	18,494,736	16,746,754
Total common stock reserved for issuance	22,272,487	20,633,050