Stock Compensation

3 Months Ended

Jan. 31, 2017

Disclosure of Compensation Related Costs, Share-based Payments [Abstract]

Stock Compensation

Stock Compensation

The compensation cost recognized in the unaudited condensed consolidated statements of operations for the Company’s stock compensation arrangements was as follows:

	Three Months Ended   January 31,
	2017			2016
	(in thousands)
Cost of products	$	2,999		$	2,596
Cost of maintenance and service	861			579
Research and development expense	12,884			11,585
Sales and marketing expense	5,129			4,701
General and administrative expense	3,961			3,552
Stock compensation expense before taxes	25,834			23,013
Income tax benefit	(7,071		)	(5,153		)
Stock compensation expense after taxes	$	18,763		$	17,860

As of January 31, 2017, there was $189.5 million of unamortized share-based compensation expense relating to options and restricted stock units and awards, which is expected to be amortized over a weighted-average period of approximately 2.6 years.

The intrinsic values of equity awards exercised during the periods are as follows:

	Three Months Ended   January 31,
	2017		2016
	(in thousands)
Intrinsic value of awards exercised	$	6,287	$	1,274

In March 2016, the Financial Accounting Standards Board (FASB) issued ASU 2016-09, "Compensation-Stock Compensation (Topic 718), Improvements to Employee Share-Based Payment Accounting." The Company elected to early adopt ASU 2016-09 in the first quarter of fiscal 2017. As required by ASU 2016-09, excess tax benefits recognized on stock-based compensation expense are classified as an operating activity in the consolidated statements of cash flows and the Company has elected to apply this provision on a prospective basis. The Company also elected to account for forfeitures as they occur and recorded a one-time adoption expense of $0.4 million to retained earnings. See Note 15. Taxes for additional information on tax impacts.