Stock-Based Compensation

3 Months Ended

Jan. 31, 2023

Share-Based Payment Arrangement [Abstract]

The compensation cost recognized in the condensed consolidated statements of income for our stock compensation arrangements was as follows:


	Three Months Ended January 31,
	2023		2022
	(in thousands)
Cost of products	$	16,029	$	11,207
Cost of maintenance and service	7,155		4,583
Research and development expense	69,231		49,540
Sales and marketing expense	24,907		17,801
General and administrative expense	16,905		12,640
Stock-based compensation expense before taxes	134,227		95,771
Income tax benefit	(21,570)		(15,429)
Stock-based compensation expense after taxes	$	112,657	$	80,342

During the three months ended January 31, 2023, we recognized stock-based compensation expense relating to restricted stock units (RSUs), granted to senior executives with certain market, performance and service conditions (market-based RSUs). The grant date fair value for the market-based RSUs granted during the three months ended January 31, 2023 was determined using the Monte Carlo simulation model with the following assumptions: expected volatility of 42.86%, risk-free interest rate of 4.63% and an expected term of 0.9 years. There were no market-based RSUs granted during the three months ended January 31, 2022.

As of January 31, 2023, we had $917.6 million of total unrecognized stock-based compensation expense relating to options, RSUs and restricted stock awards, which is expected to be recognized over a weighted-average period of 2.1 years. As of January 31, 2023, we had $60.3 million of unrecognized stock-based compensation expense relating to our Employee Stock Purchase Plan, which is expected to be recognized over a period of approximately 2.0 years.

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


	Three Months Ended January 31,
	2023		2022
	(in thousands)
Intrinsic value of awards exercised	$	54,776	$	112,925