XML 49 R33.htm IDEA: XBRL DOCUMENT v3.21.2
Employee Benefit Plans (Tables)
 12 Months Ended
Oct. 31, 2021
Share-based Payment Arrangement [Abstract]  
Restricted Stock Units The following table contains information concerning activities related to restricted stock units granted under the 2006 Employee Plan:
Restricted
Stock Units Outstanding(1)
Weighted 
Average
Grant Date
Fair Value		Weighted
Average
Remaining
Contractual
Life (In Years)		Aggregate
Fair
Value
 (in thousands, except per share and life amounts)
Balance at October 31, 20183,769 $72.75 1.46
Granted(2)
1,844 $119.27 
Vested(3)
(1,508)$65.97 $176,659 
Forfeited(248)$79.49 
Balance at October 31, 20193,857 $97.21 1.56
Granted(2)
2,041 $168.15 
Vested(3)
(1,480)$88.70 $261,563 
Forfeited(288)$104.67 
Balance at October 31, 20204,130 $134.80 1.47
Granted(2)
1,901 $258.58 
Vested(3)
(1,565)$122.01 $421,034 
Forfeited(279)$167.76 
Balance at October 31, 20214,187 $193.58 1.39
(1)No restricted stock units were assumed in connection with acquisitions in the last three fiscal years, but the balance at fiscal year-end includes certain restricted stock units that were previously assumed in connection with acquisitions.
(2) Includes restricted stock units granted to senior management with performance-based vesting criteria (in addition to service-based vesting criteria) (performance-based RSUs) reported at the maximum possible number of shares that may ultimately be issuable if all applicable performance-based criteria are achieved at their maximum levels and all applicable service-based criteria are fully satisfied.
(3) The number of vested restricted stock units includes shares that were withheld on behalf of employees to satisfy the minimum statutory tax withholding requirements.
Stock Options The following table summarizes stock option activity and includes stock options granted under the 2006 Employee Plan:
 Options Outstanding
 
Shares Under Stock Option (1)
Weighted-
Average Exercise
Price per Share		Weighted-
Average
Remaining
Contractual
Life (In Years)		Aggregate
Intrinsic
Value
 (in thousands, except per share)
Balance at October 31, 20186,291 $55.63 4.39$214,432 
Granted799 $113.17 
Exercised(1,615)$44.29 
Canceled/forfeited/expired(185)$58.02 
Balance at October 31, 20195,290 $65.57 4.08$373,112 
Granted700 $143.44 
Exercised(1,891)$51.76 
Canceled/forfeited/expired(106)$84.14 
Balance at October 31, 20203,993 $85.26 4.10$513,845 
Granted353 $239.46 
Exercised(1,203)$66.50 
Canceled/forfeited/expired(36)$128.49 
Balance at October 31, 20213,107 $109.51 3.81$694,921 
Vested and expected to vest as of October 31, 20213,107 109.513.81$694,921 
Exercisable at October 31, 20211,990 81.883.08$500,210 
(1)No stock options were assumed in connection with acquisitions in the last three fiscal years, but the balance at fiscal year-end includes certain stock options that were previously assumed in connection with acquisitions.
The pre-tax intrinsic value of options exercised and their average exercise prices were:
 Year Ended October 31,
 202120202019
 (in thousands, except per share price)
Intrinsic value$254,587 $218,640 $110,815 
Average exercise price per share$66.50 $51.76 $44.29 
Restricted Stock Units and Stock Options The following table contains additional information concerning activities related to stock options and restricted stock units that were granted under the 2006 Employee Plan and assumed from acquisitions:
 
Available for Grant (1)(2) (3)
 (in thousands, except per share and life amounts)
Balance at October 31, 201812,439 
Options granted(2)
(799)
Options canceled/forfeited/expired(2)
129 
Restricted stock units granted(1)
(3,134)
Restricted stock units forfeited(1)
373 
Additional shares reserved3,200 
Balance at October 31, 201912,208 
Options granted(2)
(694)
Options canceled/forfeited/expired(2)
102 
Restricted stock units granted(1)
(3,469)
Restricted stock units forfeited(1)
482 
Additional shares reserved3,500 
Balance at October 31, 202012,129 
Options granted(2)
(353)
Options canceled/forfeited/expired(2)
36 
Restricted stock units granted(1)
(3,232)
Restricted stock units forfeited(1)
471 
Additional shares reserved4,700 
Balance at October 31, 202113,751 
(1)Restricted stock units include awards granted under the 2006 Employee Plan and assumed through acquisitions. The number of RSUs reflects the application of the award multiplier of 1.70x as described above.
(2)Options granted by the Company are not subject to the award multiplier ratio described above.
(3)Excluding shares reserved for future issuance under the 2017 Directors Plan.
Summary of Restricted Stock Award Activities Under 2005 Directors Plan Restricted Stock Awards. The following table summarizes restricted stock award activities during fiscal 2021 under the 2005 Directors Plan and 2017 Directors Plan:
Restricted
Shares		Weighted-Average
Grant Date Fair Value
 (in thousands, except per share)
Unvested at October 31, 2018
20 $73.95 
Granted11 $116.43 
Vested(20)$73.95 
Forfeited— $— 
Unvested at October 31, 2019
11 $116.43 
Granted9 $140.97 
Vested(11)$116.43 
Forfeited— $— 
Unvested at October 31, 20209 $140.97 
Granted5 $261.01 
Vested(9)$140.97 
Forfeited— $— 
Unvested at October 31, 20215 $261.01 
Stock Option Plans and Stock Purchase Rights Granted Under ESPP The assumptions presented in the following table were used to estimate the fair value of stock options and employee stock purchase rights granted under the Company’s stock plans or stock plans assumed from acquisitions:
 Year Ended October 31,
 202120202019
Stock Options
Expected life (in years)
4.1
4.1
4.1
Risk-free interest rate
0.35%- 1.00%
0.26% - 1.71%
1.28% - 2.73%
Volatility
29.19% -32.28%
23.05% - 32.80%
23.16%- 24.76%
Weighted average estimated fair value
$61.58
$33.02
$22.86
ESPP
Expected life (in years)
0.5 - 2.0
0.5 - 2.0
0.5 - 2.0
Risk-free interest rate
0.00% - 0.19%
0.09% - 1.24%
1.54% - 2.60%
Volatility
28.02% - 39.68%
25.59% - 43.06%
23.73% - 27.86%
Weighted average estimated fair value
$89.82
$47.69
$35.18
Stock Compensation Expense The compensation cost recognized in the consolidated statements of income for the Company's stock compensation arrangements was as follows:
 Year Ended October 31,
 202120202019
 (in thousands)
Cost of products$38,345 $27,193 $17,193 
Cost of maintenance and service13,817 9,327 6,385 
Research and development expense171,013 125,814 75,853 
Sales and marketing expense61,940 43,205 28,834 
General and administrative expense60,157 43,045 26,736 
Stock-based compensation expense before taxes345,272 248,584 155,001 
Income tax benefit(53,483)(39,077)(26,226)
Stock-based compensation expense after taxes$291,789 $209,507 $128,775 
Deferred Plan Assets and Liabilities
Deferred plan assets and liabilities are as follows:
As of October 31, 2021As of October 31, 2020
 (in thousands)
Plan assets recorded in other long-term assets$343,820 $269,737 
Plan liabilities recorded in other long-term liabilities(1)
$343,820 $269,737 
(1)Undistributed deferred compensation balances due to participants.
Summary of Impact of Deferred Plan The following table summarizes the impact of the Deferred Plan:
 Year Ended October 31,
 202120202019
 (in thousands)
Increase (reduction) to cost of revenue and operating expense$71,603 $21,469 $27,759 
Other income (expense), net71,603 21,469 27,759 
Net increase (decrease) to net income$— $— $—