Stock-Based Compensation (Tables)

9 Months Ended

Aug. 30, 2019

Share-based Payment Arrangement [Abstract]

Restricted Stock Unit Activity

Restricted stock unit activity for the nine months ended August 30, 2019 was as follows:

(in thousands)	2019
Beginning outstanding balance	8,668
Awarded	4,148
Released	(3,569	)
Forfeited	(646	)
Ending outstanding balance	8,601

Restricted Stock Units Outstanding

Information regarding restricted stock units outstanding at August 30, 2019 and August 31, 2018 is summarized below:

	Number of Shares (thousands)	Weighted Average Remaining Contractual Life (years)	Aggregate Intrinsic Value(*) (millions)
2019
Restricted stock units outstanding	8,601	1.29	$	2,446.9
Restricted stock units expected to vest	7,862	1.22	$	2,236.7
2018
Restricted stock units outstanding	8,835	1.23	$	2,328.1
Restricted stock units expected to vest	8,104	1.18	$	2,135.7

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^(*) 

The intrinsic value is calculated as the market value as of the end of the fiscal period. As reported by the NASDAQ Global Select Market, the market values as of August 30, 2019 and August 31, 2018 were $284.51 and $263.51, respectively. 

Performance Share Activity

The following table sets forth the summary of performance share activity for the nine months ended August 30, 2019: 

(in thousands)	2019
	Shares Granted			Maximum Shares Eligible to Receive
Beginning outstanding balance	1,148			2,296
Awarded	722		(1)	614
Achieved	(830	)	(2)	(830	)
Forfeited	(73	)		(145	)
Ending outstanding balance	967			1,935

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⁽¹⁾  Included in the 0.7 million shares awarded during the nine months ended August 30, 2019 were 0.4 million shares awarded for the final achievement of the 2016 Performance Share program. The remaining awarded shares were for the 2019 Performance Share Program.

⁽²⁾ 

Shares achieved under our 2016 Performance Share Program resulted from 200% achievement of target.

Schedule of Share-based Payment Award, Employee Stock Purchase Plan, Valuation Assumptions

The assumptions used to value employee stock purchase rights during the three and nine months ended August 30, 2019 and August 31, 2018 were as follows:

	Three Months		Nine Months
	2019	2018	2019	2018
Expected life (in years)	0.5 - 2.0	0.5 - 2.0	0.5 - 2.0	0.5 - 2.0
Volatility	30%	29%	30% - 35%	26% - 29%
Risk free interest rate	1.78%	2.09% - 2.52%	1.78% - 2.47%	1.54% - 2.52%

Schedule of Employee Service Share-based Compensation, Allocation of Recognized Period Costs

Total stock-based compensation costs included in our condensed consolidated statements of income for the three months ended August 30, 2019 and August 31, 2018 were as follows:

(in thousands)	2019				2018
Income Statement Classifications	Restricted Stock Units and Performance Share Awards		Stock Purchase Rights and Options Grants		Restricted Stock Units and Performance Share Awards		Stock Purchase Rights and Options Grants
Cost of revenue—subscription	$	5,833	$	1,742	$	4,509	$	934
Cost of revenue—services and support	4,446		1,491		2,789		1,930
Research and development	83,348		10,174		66,308		6,347
Sales and marketing	47,782		12,695		47,885		7,551
General and administrative	25,264		2,737		17,853		2,932
Total	$	166,673	$	28,839	$	139,344	$	19,694

Total stock-based compensation costs included in our condensed consolidated statements of income for the nine months ended August 30, 2019 and August 31, 2018 were as follows:

(in thousands)	2019				2018
Income Statement Classifications	Restricted Stock Units and Performance Share Awards		Stock Purchase Rights and Option Grants		Restricted Stock Units and Performance Share Awards		Stock Purchase Rights and Option Grants
Cost of revenue—subscription	$	17,506	$	4,632	$	12,979	$	2,431
Cost of revenue—services and support	12,415		5,246		8,455		5,593
Research and development	245,291		27,390		183,989		16,997
Sales and marketing	158,554		33,135		129,480		18,314
General and administrative	72,124		8,207		55,941		5,762
Total	$	505,890	$	78,610	$	390,844	$	49,097