Stock-Based Compensation

6 Months Ended

May 02, 2015

Share-based Compensation, Allocation and Classification in Financial Statements [Abstract]

Stockholders' Equity and Stock-Based Compensation

Stock-Based Compensation

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

	Three Months Ended				Six Months Ended
	May 2, 2015		May 3, 2014		May 2, 2015		May 3, 2014
Cost of revenues	$	1,986	$	3,474	$	5,802	$	6,617
Research and development	3,080		4,422		8,013		8,757
Sales and marketing	7,207		8,462		17,050		15,227
General and administrative	3,802		4,694		9,292		9,039
Total stock-based compensation	$	16,075	$	21,052	$	40,157	$	39,640

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

	Three Months Ended				Six Months Ended
	May 2, 2015		May 3, 2014		May 2, 2015		May 3, 2014
Stock options	$	536	$	1,249	$	1,892	$	2,530
RSUs, including stock units with market conditions	11,317		17,404		29,251		31,987
Employee stock purchase plan (“ESPP”)	4,222		2,399		9,014		5,123
Total stock-based compensation	$	16,075	$	21,052	$	40,157	$	39,640

The following table presents the unrecognized compensation expense, net of estimated forfeitures, of the Company’s equity compensation plans as of May 2, 2015, which is expected to be recognized over the following weighted-average periods (in thousands, except for the weighted-average period):

	Unrecognized Compensation Expense		Weighted- Average Period (in years)
Stock options	$	537	1.29
RSUs, including stock units with market conditions	$	24,801	1.78
ESPP	$	7,783	0.81

In accordance with the applicable accounting guidance for stock-based compensation, the compensation expense for stock-based awards is reduced by an estimate for forfeitures and is recognized over the requisite service period of the respective awards. To the extent that the actual forfeitures differ from the estimated forfeitures, the Company records the difference in the period that the awards vest. The Company estimates the forward-looking forfeiture rate, using the Company’s historical forfeiture rates, annually during the second fiscal quarter, and whenever events occur or facts and circumstances indicate that the current forfeiture rate estimate is significantly different from historical forfeitures. Changes in the estimated forfeiture rates and differences between the estimated forfeiture rates and actual forfeiture rates may result in significant increases or decreases in stock-based compensation expense from period to period.

Based on the results of the annual forfeiture rate analysis performed during the second fiscal quarter of 2015, the Company recorded a cumulative adjustment to reduce stock-based compensation expense by $5.6 million during the three months ended May 2, 2015, to reflect the effect of the change in the estimated forfeiture rates.

There was no significant impact related to the change in the estimated forfeiture rates during the three months ended May 3, 2014.

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

	Six Months Ended
	May 2, 2015			May 3, 2014
	Granted (in thousands)	Weighted-Average Grant Date Fair Value		Granted (in thousands)	Weighted-Average Grant Date Fair Value
Stock options	1,117	$	3.09	250	$	3.32
RSUs, including stock units with market conditions	5,463	$	10.98	1,108	$	10.05

The total intrinsic value of stock options exercised for the six months ended May 2, 2015, and May 3, 2014, was $2.0 million and $17.5 million, respectively.