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Stockholders' Equity and Stock-based Compensation (Tables)
12 Months Ended
Jul. 31, 2017
Stockholders' Equity and Stock-based Compensation [Abstract]  
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


 
 
 
 
 
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


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

 
 
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



(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.
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

 

 

Exercised
(665,665
)
 
9.46

 

 
27,263

Canceled
(51,169
)
 
23.04

 

 

Balance as of July 31, 2015
1,822,062

 
14.29

 
4.9
 
81,548

Granted
10,000

 
54.00

 

 

Exercised
(652,832
)
 
12.01

 

 
29,186

Canceled
(20,658
)
 
40.86

 

 

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

(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.
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.
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