Stockholders' Equity and Stock-based Compensation (Tables)

9 Months Ended

Apr. 30, 2018

Stockholders' Equity and Stock-based Compensation [Abstract]

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



	Three Months Ended April 30,					Nine Months Ended April 30,
	2018		2017			2018		2017
	(in thousands)
Total stock-based compensation	$	23,820	$	17,433		$	68,469	$	54,344
Net impact of capitalized stock-based compensation	19		(236		)	25		(683		)
Total stock-based compensation expense	$	23,839	$	17,197		$	68,494	53,661

Stock-based compensation expense was charged to the following categories:
Cost of license and other revenues	$	274	$	90		$	706	$	231
Cost of maintenance revenues	462		416			1,398		1,265
Cost of services revenues	5,310		4,459			15,982		13,969
Research and development	7,236		4,508			19,845		13,625
Sales and marketing	4,527		3,992			13,768		12,498
General and administrative	6,030		3,732			16,795		12,073
Total stock-based compensation expense	$	23,839	$	17,197		$	68,494	$	53,661

Unrecognized compensation cost, adjusted for estimated forfeitures

As of April 30, 2018, total unamortized stock-based compensation cost for our options and Stock Awards were as follows:



	As of April 30, 2018
	Unrecognized Expense		Weighted Average Expected Recognition Period
	(in thousands)		(in years)
Stock Options	$	6,732	2.3
Stock Awards	172,830		2.4
	$	179,562

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

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



	Stock Awards Outstanding
	Number of Stock Awards Outstanding		Weighted Average Grant Date Fair Value		Aggregate Intrinsic Value (in thousands) ⁽¹⁾
Balance as of July 31, 2017	2,634,085		$	56.62	$	190,076
Granted	1,714,276		$	78.69
Released	(965,699	)	$	56.07	$	76,291
Canceled	(192,365	)	$	62.72
Balance as of April 30, 2018	3,190,297		$	68.26	$	268,726
Expected to vest as of April 30, 2018	3,190,297		$	68.26	$	268,726

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, 2017	555,636		$	22.17	4.0	$	27,777
Granted	137,057
Exercised	(93,973	)	$	11.23		$	6,430
Canceled	(1,970	)
Balance as of April 30, 2018	596,750		$	21.14	4.5	$	37,883
Vested and expected to vest as of April 30, 2018	596,750		$	21.14	4.5	$	37,883
Exercisable as of April 30, 2018	468,280		$	22.48	3.5	$	29,099


⁽¹⁾	Aggregate intrinsic value at each period end represents the difference between the Company's closing stock prices of $84.62 and $72.16 on April 30, 2018 and July 31, 2017, 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,
	2018	2017	2018	2017
Expected term (in years)	*	*	2.88	2.66-2.88
Risk-free interest rate	*	*	1.44%	0.89%-1.34%
Expected volatility of the Company	*	*	28.0%	30.2%-31.5%
Average expected volatility of the peer companies in the S&P Index	*	*	34.7%	36.9%-37.0%
Expected dividend yield	*	*	—%	—%

Common Stock Reserved for Issuance

As of April 30, 2018 and July 31, 2017, the Company had reserved shares of common stock for future issuance as follows:



	April 30, 2018	July 31, 2017
Exercise of stock options to purchase common stock	596,750	555,636
Vesting of restricted stock awards	2,945,450	2,634,085
Shares available under stock plans	21,626,676	18,453,674
Total common stock reserved for issuance	25,168,876	21,643,395