Stockholders' Equity and Stock-based Compensation (Tables)
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12 Months Ended |
Jul. 31, 2017 |
Stockholders' Equity and Stock-based Compensation [Abstract] |
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Stock-based compensation expense |
Stock-based compensation cost related to options and restricted stock units (“RSUs”) granted to employee and non-employee is as follows: | | | | | | | | | | | | | | Fiscal years ended July 31, | | 2017 | | 2016 | | 2015 | | (in thousands) | Total cost of stock-based compensation | $ | 72,695 |
| | $ | 66,409 |
| | $ | 51,375 |
| Impact of capitalized stock-based compensation | (901 | ) | | (278 | ) | | — |
| Amount charged to income | $ | 71,794 |
| | $ | 66,131 |
| | $ | 51,375 |
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| | | | | | Stock-based compensation cost charged to the following expense categories: | Cost of license and other revenues | $ | 373 |
| | $ | 433 |
| | $ | 222 |
| Cost of maintenance revenues | 1,694 |
| | 1,491 |
| | 1,158 |
| Cost of services revenues | 18,622 |
| | 17,878 |
| | 15,022 |
| Research and development | 18,123 |
| | 15,555 |
| | 10,683 |
| Sales and marketing | 16,663 |
| | 15,090 |
| | 12,090 |
| General and administrative | 16,319 |
| | 15,684 |
| | 12,200 |
| Total stock-based compensation expense | 71,794 |
| | 66,131 |
| | 51,375 |
| Tax benefit from stock-based compensation | 23,014 |
| | 20,092 |
| | 19,087 |
| Total stock-based compensation expense, net of tax effect | $ | 48,780 |
| | $ | 46,039 |
| | $ | 32,288 |
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Schedule of Unrecognized Compensation Cost, Nonvested Awards |
As of July 31, 2017, total unrecognized compensation cost, adjusted for estimated forfeitures and before tax benefit, was as follows: | | | | | | | | As of July 31, 2017 | | Unrecognized Expense | | Weighted Average Expected Recognition Period | | (in thousands) | | (in years) | Restricted stock units | $ | 118,288 |
| | 2.4 | Stock options | 990 |
| | 1.1 | | $ | 119,278 |
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Schedule of Share-based Compensation, Restricted Stock Units Award Activity |
RSU activity under the Company’s equity incentive plans is as follows: | | | | | | | | | | | | | Number of RSUs | | Weighted Average Grant Date Fair Value | | Aggregate Intrinsic Value (1) | | | | | | (in thousands) | Balance as of July 31, 2014 | 3,384,221 |
| | $ | 30.70 |
| | $ | 137,061 |
| Granted | 1,664,413 |
| | 47.50 |
| | | Released | (1,819,825 | ) | | 25.99 |
| | $ | 88,648 |
| Canceled | (346,135 | ) | | 36.72 |
| | | Balance as of July 31, 2015 | 2,882,674 |
| | 42.65 |
| | $ | 170,222 |
| Granted | 1,586,192 |
| | 54.99 |
| | | Released | (1,408,746 | ) | | 41.21 |
| | $ | 78,763 |
| Canceled | (332,396 | ) | | 46.71 |
| | | Balance as of July 31, 2016 | 2,727,724 |
| | 50.08 |
| | $ | 167,673 |
| Granted | 1,542,235 |
| | 61.22 |
| | | Released | (1,372,770 | ) | | 49.38 |
| | $ | 81,427 |
| Canceled | (263,104 | ) | | 53.53 |
| | | Balance as of July 31, 2017 | 2,634,085 |
| | $ | 56.62 |
| | $ | 190,076 |
| Expected to vest as of July 31, 2017 | 2,465,394 |
| | $ | 56.40 |
| | $ | 177,903 |
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| | (1) | Aggregate intrinsic value at each fiscal year end represents the total market value of RSUs at the Company’s closing stock price of $72.16, $61.47 and $59.05 on July 31, 2017, 2016 and 2015, respectively. Aggregate intrinsic value for released RSUs represents the total market value of released RSUs at date of release. |
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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, 2014 | 2,400,253 |
| | $ | 11.24 |
| | 5.5 | | $ | 71,640 |
| Granted | 138,643 |
| | 47.23 |
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| Exercised | (665,665 | ) | | 9.46 |
| |
| | 27,263 |
| Canceled | (51,169 | ) | | 23.04 |
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| Balance as of July 31, 2015 | 1,822,062 |
| | 14.29 |
| | 4.9 | | 81,548 |
| Granted | 10,000 |
| | 54.00 |
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| Exercised | (652,832 | ) | | 12.01 |
| |
| | 29,186 |
| Canceled | (20,658 | ) | | 40.86 |
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| Balance as of July 31, 2016 | 1,158,572 |
| | 15.45 |
| | 4.0 | | 53,316 |
| Granted | — |
| | — |
| | | | | Exercised | (594,936 | ) | | 9.35 |
| | | | 30,636 |
| Canceled | (8,000 | ) | | 2.74 |
| | | | | Balance as of July 31, 2017 | 555,636 |
| | $ | 22.17 |
| | 4.0 | | $ | 27,777 |
| Vested and expected to vest as of July 31, 2017 | 554,768 |
| | $ | 22.13 |
| | 4.0 | | $ | 27,757 |
| Exercisable as of July 31, 2017 | 498,893 |
| | $ | 19.25 |
| | 3.7 | | $ | 26,395 |
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| | (1) | Aggregate intrinsic value at each fiscal year end represents the difference between the Company’s closing stock price of $72.16, $61.47 and $59.05 on July 31, 2017, 2016 and 2015 and the exercise price of the option, respectively. Aggregate intrinsic value for exercised options represents the difference between the Company’s stock price at date of exercise and the exercise price. |
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Stock options valuation assumptions |
The per share fair value of each stock option was determined using the Black-Scholes option-pricing model with the following assumptions: | | | | | | | | Fiscal years ended July 31, | | 2017 | | 2016 | | 2015 | Expected life (in years) | * | | 4.9 | | 6.0 - 6.1 | Risk-free interest rate | * | | 1.5% | | 1.7% - 1.9% | Expected volatility | * | | 38.8% | | 39.4% - 45.1% | Expected dividend yield | * | | —% | | —% | Weighted average fair value of options granted | * | | $19.18 | | $20.78 |
* There were no options granted during fiscal year ended July 31, 2017.
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Common Stock Reserved for Issuance |
As of July 31, 2017 and 2016, the Company had reserved shares of common stock for future issuance as follows: | | | | | | | | July 31, 2017 | | July 31, 2016 | Exercise of stock options to purchase common stock | 555,636 |
| | 1,158,572 |
| Vesting of restricted stock units | 2,634,085 |
| | 2,727,724 |
| Shares available for grant under stock plans | 18,453,674 |
| | 16,746,754 |
| Total common stock reserved for future issuance | 21,643,395 |
| | 20,633,050 |
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