Stock-based Compensation (Tables)

3 Months Ended

Dec. 31, 2020

Share Based Compensation Allocation And Classification In Financial Statements [Abstract]

Schedule of Restricted Stock Unit Activity

The following table shows restricted stock unit activity for the three months ended December 31, 2020:

(in thousands, except grant date fair value data)	Number of RSUs			Weighted-Average Grant Date Fair Value Per RSU
Balance of outstanding restricted stock units, October 1, 2020		3,509		$	79.13
Granted(1)		925		$	100.20
Vested		(801	)	$	79.41
Forfeited or not earned		(36	)	$	78.79
Balance of outstanding restricted stock units, December 31, 2020		3,597		$	84.61

(1) Restricted stock granted includes 33,000 shares from prior period TSR awards that were earned upon achievement of the performance criteria and vested in November 2020.

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 three months of 2021		90		712		90

(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. To the extent earned, those performance-based RSUs will vest in three substantially equal installments on November 15, 2021, November 15, 2022 and November 15, 2023, 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 179 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	41.5	%
Risk free interest rate	0.21	%
Dividend yield	—	%

Schedule of Classification of Compensation Expense

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

(in thousands)	Three months ended
	December 31, 2020		December 28, 2019
Cost of license revenue	$	20	$	—
Cost of support and cloud services revenue		2,302		1,486
Cost of professional services revenue		2,112		1,557
Sales and marketing		14,999		7,452
Research and development		8,443		6,932
General and administrative		18,212		10,509
Total stock-based compensation expense	$	46,088	$	27,936