Stockholders’ Equity and Stock-Based Compensation

Dividends

In the third quarter of fiscal year 2014, the Company’s Board of Directors approved the initiation of a quarterly cash dividend on the Company’s common stock. As of August 2, 2014, the Company’s Board of Directors declared the following dividends (in thousands, except per share amounts):

Declaration Date

Dividend per Share

Record Date

Total Amount Paid

Payment Date

May 22, 2014

0.035

June 10, 2014

15,270

July 2, 2014

No dividends were declared or paid by the Company during the first two quarters of fiscal year 2014. On August 21, 2014, the Company’s Board of Directors declared a cash dividend of $0.035 per share of the Company’s common stock for stockholders of record as of the close of market on September 10, 2014, to be paid on October 2, 2014. Future dividend payments are subject to review and approval by the Company’s Board of Directors.

Stock-Based Compensation

Stock-based compensation expense, net of estimated forfeitures, was included in the following line items of the Condensed Consolidated Statements of Income as follows (in thousands):



	Three Months Ended				Nine Months Ended
	August 2, 2014		July 27, 2013		August 2, 2014		July 27, 2013
Cost of revenues	$	4,121	$	3,858	$	10,738	$	11,345
Research and development	4,350		4,020		13,107		13,205
Sales and marketing	7,592		7,164		22,819		23,321
General and administrative	5,511		3,727		14,550		9,220
Total stock-based compensation	$	21,574	$	18,769	$	61,214	$	57,091

The following table presents stock-based compensation expense, net of estimated forfeitures, by grant type (in thousands):



	Three Months Ended				Nine Months Ended
	August 2, 2014		July 27, 2013		August 2, 2014		July 27, 2013
Stock options, including variable options	$	1,072	$	828	$	3,602	$	1,818
Restricted stock units, including stock units with market conditions (altogether “RSUs”)	13,970		11,202		45,957		38,351
Employee stock purchase plan (“ESPP”)	6,532		6,739		11,655		16,922
Total stock-based compensation	$	21,574	$	18,769	$	61,214	$	57,091

The following table presents the unrecognized compensation expense, net of estimated forfeitures, of the Company’s equity compensation plans as of August 2, 2014, which is expected to be recognized over the following weighted-average periods (in thousands, except for weighted-average period):



	Unrecognized Compensation Expense		Weighted- Average Period (in years)
Stock options	$	5,432	1.49
RSUs	$	124,306	2.03
ESPP	$	19,606	1.17

The following table presents details on grants made by the Company for the following periods:



	Nine Months Ended
	August 2, 2014			July 27, 2013
	Granted (in thousands)	Weighted-Average Grant Date Fair Value		Granted (in thousands)	Weighted-Average Grant Date Fair Value
Stock options	1,770	$	3.16	2,875	$	2.34
RSUs	10,419	$	9.81	11,519	$	5.70

The total intrinsic value of stock options exercised for the nine months ended August 2, 2014, and July 27, 2013, was $22.3 million and $19.5 million, respectively.