Stock-based Compensation (Tables)

6 Months Ended

Mar. 28, 2020

Share-based Payment Arrangement, Expensed and Capitalized, Amount [Abstract]

Schedule of Restricted Stock and Restricted Stock Unit Activity



Restricted stock unit activity for the six months ended March 28, 2020	Number of RSUs (in thousands)		Weighted- Average Grant Date Fair Value Per RSU
Balance of outstanding restricted stock units October 1, 2019	3,232		$	80.52
Granted	1,349		$	77.18
Vested	(958	)	$	68.79
Forfeited or not earned	(550	)	$	84.27
Balance of outstanding restricted stock units March 28, 2020	3,073		$	82.03

Schedule of Restricted Stock Unit Grants for the Period



(in thousands)	Restricted Stock Units
Grant Period	Performance-based RSUs ⁽¹⁾	Service-based RSUs ⁽²⁾	Total Shareholder Return RSUs ⁽³⁾
First six months of 2020	97	1,155	97

_________________

(1)

The performance-based RSUs were granted to our executives and are eligible to vest based upon annual increasing performance measures over a three-year period. RSUs not earned in either of the first two measurement periods may be earned in the third period. To the extent earned, those performance-based RSUs will vest in three substantially equal installments on November 15, 2020, November 15, 2021 and November 15, 2022, or the date the Compensation Committee determines the extent to which the applicable performance criteria have been achieved for each performance period. Up to a maximum of two times the number of RSUs can be earned (a maximum aggregate of 195 thousand RSUs).


(2)	The service-based RSUs were granted to employees, including our executive officers. Substantially all service-based RSUs will vest in three substantially equal annual installments on or about the anniversary of the date of grant.

(3)

The Total Shareholder Return RSUs (TSR RSUs) were granted to our executives pursuant to the terms described below.

Schedule of Valuation Assumptions

The significant assumptions used in the Monte Carlo simulation model were as follows:



Average volatility of peer group	28.0	%
Risk free interest rate	1.59	%
Dividend yield	—	%

Schedule of Classification of Compensation Expense

Compensation expense recorded for our stock-based awards was classified in our Consolidated Statements of Operations as follows:



(in thousands)	Three months ended				Six months ended
	March 28, 2020		March 30, 2019		March 28, 2020		March 30, 2019
Cost of license revenue	$	11	$	48	$	11	$	370
Cost of support and cloud services revenue	1,523		1,158		3,010		2,133
Cost of professional services revenue	1,466		1,906		3,022		3,720
Sales and marketing	7,146		9,522		14,598		19,244
Research and development	4,765		5,190		11,697		10,090
General and administrative	5,573		9,143		16,082		20,817
Total stock-based compensation expense	$	20,484	$	26,967	$	48,420	$	56,374