Employee Benefit Plans (Tables)

12 Months Ended

Oct. 31, 2012

The following table contains information concerning activities related to restricted stock units:


	Restricted Stock Units			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, 2009		3,133		$	22.63		1.41
Granted		1,228		$	22.00
Assumed(1)		713		$	23.69
Vested(2)		(1,221	)	$	22.40			$	27,345
Forfeited		(123	)	$	22.51

Balance at October 31, 2010		3,730		$	22.71		1.41
Granted		1,483		$	26.89
Vested(2)		(1,522	)	$	23.11			$	35,164
Forfeited		(237	)	$	23.49

Balance at October 31, 2011		3,454		$	24.28		1.48
Granted		1,813		$	29.52
Assumed(1)		353		$	30.33
Vested(2)		(1,508	)	$	24.14			$	36,402
Forfeited		(192	)	$	26.70

Balance at October 31, 2012		3,920		$	27.18		1.52

(1)	The Company assumed restricted stock units outstanding under various plans through acquisitions.

(2)	The number of vested restricted stock units includes shares that were withheld on behalf of employees to satisfy the statutory tax withholding requirements.

Stock Options and Restricted Stock Units Under all Equity Plans (Except 2005 Directors Plan)

The following table contains additional information concerning activities related to stock options and restricted stock units under all equity plans, other than shares available for grant under the 2005 Directors Plan:


	Available for Grant(3)			Options(2)
	Available for Grant(3)			Options Outstanding			Weighted- Average Exercise Price per Share		Weighted- Average Remaining Contractual Life (In Years)		Aggregate Intrinsic Value
	(in thousands, except per share and life amounts)
Balance at October 31, 2009		6,703			25,818		$	21.22		2.89	$	58,267
Options Granted		(1,995	)		1,995		$	21.30
Options Assumed(2)					456		$	18.10
Options Exercised					(6,465	)	$	18.16
Options Canceled/forfeited/expired		372			(620	)	$	23.19
Restricted stock units granted(1)		(2,677	)
Restricted stock units forfeited(1)		203
Additional shares reserved		—

Balance at October 31, 2010		2,606			21,184		$	21.83		2.80	$	90,013
Options Granted		(2,228	)		2,270		$	26.07
Options Exercised					(6,800	)	$	20.53
Options Canceled/forfeited/expired		550			(694	)	$	27.24
Restricted stock units granted(1)		(2,182	)
Restricted stock units forfeited(1)		165
Additional shares reserved		7,000

Balance at October 31, 2011		5,911			15,960		$	22.76		2.97	$	74,068
Options Granted		(1,719	)		1,719		$	28.86
Options Assumed(2)					382		$	19.15
Options Exercised					(7,103	)	$	21.09
Options Canceled/forfeited/expired		631			(739	)	$	25.07
Restricted stock units granted(1)		(2,638	)
Restricted stock units forfeited(1)		167
Additional shares reserved		5,000

Balance at October 31, 2012		7,352			10,219		$	24.64		3.71	$	80,950
Vested and expected to vest as of October 31, 2012					10,135		$	24.62		3.69	$	80,526

Exercisable at October 31, 2012					6,337		$	23.87		2.61	$	55,118

(1)

These amounts do not reflect the actual number of restricted stock units granted or forfeited but rather the effect on the total remaining shares available for future grants after the application of the share reserve ratio. For more information about the share reserve ratio, please see Restricted Stock Units above.

(2)	The Company assumed options and stock appreciation rights (SARs) outstanding under various plans through acquisitions.

(3)	Excluding shares reserved for future issuance under the 2005 Directors Plan.

Pretax Intrinsic Value of Options Exercised and Their Average Exercise Prices

Company’s closing stock price of $32.55 as of October 31, 2012. The pretax intrinsic value of options exercised and their average exercise prices were:


	Year Ended October 31,
	2012		2011		2010
	(in thousands, except per share price)
Exercise value	$	63,048	$	42,388	$	29,788
Average exercise price per share	$	21.09	$	20.53	$	18.16

Stock Options Outstanding

The following table summarizes information about stock options outstanding as of October 31, 2012:


	Options Outstanding						Exercisable Options
Range of Exercise Prices	Number Outstanding		Weighted-Average Remaining Contractual Life (In Years)		Weighted-Average Exercise Price		Number Exercisable		Weighted-Average Exercise Price
	(in thousands)						(in thousands)
$ 3.60 - $19.28		1,289		2.89	$	16.58		1,147	$	16.63
$19.32 - $21.10		1,055		2.66	$	20.82		790	$	20.76
$21.18 - $23.39		1,391		4.68	$	22.03		599	$	21.76
$23.45 - $26.09		1,219		2.17	$	24.71		1,131	$	24.68
$26.17 - $26.56		1,232		3.53	$	26.40		792	$	26.32
$26.66 - $27.14		1,505		4.05	$	27.04		869	$	27.05
$27.43 - $29.62		1,033		5.22	$	27.88		340	$	28.29
$29.80 - $40.56		1,495		4.28	$	30.54		669	$	31.16

		10,219		3.71	$	24.64		6,337	$	23.87

Summary of Restricted Stock Award Activities Under 2005 Director Plan

Restricted stock award activities during fiscal 2012 under the 2005 Director Plan are summarized as follows:


	Restricted Shares			Weighted-Average Grant Date Fair Value
	(in thousands)
Unvested at October 31, 2011		54		$	24.73
Granted		28		$	31.04
Vested		(25	)	$	23.66
Forfeited		—		$	—

Unvested at October 31, 2012		57		$	28.28

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,
	2012	2011	2010
Stock Options
Expected life (in years)	1.0 - 4.9	4.8	3.65 - 5.73
Risk-free interest rate	0.22% - 0.95%	0.96% - 2.28%	1.08% - 2.57%
Volatility	22.65% - 29.76%	26.96% - 30.30%	26.92% - 30.76%
Weighted average estimated fair value	$8.46	$7.04	$7.10
ESPP
Expected life (in years)	0.5 - 2.0	0.5 - 2.0	0.5 - 2.0
Risk-free interest rate	0.16% - 0.34%	0.09% - 0.68%	0.18% - 0.78%
Volatility	21.95% - 23.20%	19.48% - 27.08%	22.4% - 31.27%
Weighted average estimated fair value	$8.02	$6.82	$6.16

Stock Compensation Expense

The following table presents stock compensation expense for fiscal 2012, 2011 and 2010, respectively:


	Year Ended October 31,
	2012			2011			2010
	(in thousands)
Cost of license	$	6,927		$	5,658		$	6,497
Cost of maintenance and service		1,727			1,416			1,908
Research and development expense		32,767			26,747			26,551
Sales and marketing expense		13,566			11,068			12,372
General and administrative expense		16,427			11,525			12,660

Stock compensation expense before taxes		71,414			56,414			59,988
Income tax benefit		(15,989	)		(14,798	)		(14,525	)

Stock compensation expense after taxes	$	55,425		$	41,616		$	45,463

Deferred Plan Assets and Liabilities

Deferred Plan Assets and Liabilities are as follows:


	As of October 31, 2012		As of October 31, 2011
	(In thousands)
Plan assets recorded in other long-term assets	$	100,645	$	90,060
Plan liabilities recorded in other long-term liabilities(1)	$	100,645	$	90,060

(1)

For undistributed deferred compensation due to participants.

Summary of Impact of Deferred Plan

The following table summarizes the impact of the Deferred Plan:


	Year Ended October 31,
	2012		2011		2010
	(in thousands)
Increase (reduction) to cost of revenue and operating expense	$	7,498	$	2,449	$	9,426
Other income (expense), net		7,498		2,449		8,810

Net increase (decrease) to net income	$	—	$	—	$	(616	)

- Definition

Tabular disclosure of components of a stock option or other award plan under which equity-based compensation is awarded to employees, typically comprised of the amount of unearned compensation (deferred compensation cost), compensation expense, and changes in the quantity and fair value of the shares (or other type of equity) granted, exercised, forfeited, and issued and outstanding pertaining to that plan. Disclosure may also include nature and general terms of such arrangements that existed during the period and potential effects of those arrangements on shareholders, effect of compensation cost arising from equity-based payment arrangements on the income statement, method of estimating the fair value of the goods or services received, or the fair value of the equity instruments granted, during the period, cash flow effects resulting from equity-based payment arrangements and, for registrants that accelerate vesting of out of the money share options, reasons for the decision to accelerate.

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- Definition

Tabular disclosure of the allocation of equity-based compensation costs to a given line item on the balance sheet and income statement for the period. This may include the reporting line for the costs and the amount capitalized and expensed.

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- Definition

Tabular disclosure of option exercise prices, by grouped ranges, including the upper and lower limits of the price range, the number of shares under option, weighted average exercise price and remaining contractual option terms.

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