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Stock-Based Compensation (Tables)
12 Months Ended
Oct. 29, 2016
Share-based Compensation Arrangement by Share-based Payment Award  
Stock-Based Compensation Expense Included In Line Items Of Consolidated Statements Of Operations
Stock-based compensation expense, net of estimated forfeitures, was included in the following line items of the Company’s Consolidated Statements of Income as follows (in thousands):
 
Fiscal Year Ended
 
October 29,
2016
 
October 31,
2015
 
November 1,
2014
Cost of revenues
$
16,882

 
$
12,946

 
$
14,963

Research and development
29,298

 
18,714

 
18,635

Sales and marketing
53,357

 
38,340

 
31,650

General and administrative
31,469

 
18,528

 
19,666

Total stock-based compensation expense
$
131,006

 
$
88,528

 
$
84,914

Stock-Based Compensation Expense By Grant Type
The following table presents stock-based compensation expense, net of estimated forfeitures, by grant type (in thousands):
 
Fiscal Year Ended
 
October 29,
2016
 
October 31,
2015
 
November 1,
2014
Stock options
$
5,612

 
$
3,675

 
$
4,581

RSUs, including restricted stock units with market conditions
105,657

 
67,735

 
62,906

Employee stock purchase plan (“ESPP”)
19,737

 
17,118

 
17,427

Total stock-based compensation expense
$
131,006

 
$
88,528

 
$
84,914

Stock-Based Compensation, Unrecognized Compensation Expense And Weighted-Average Period
The following table presents the unrecognized compensation expense, net of estimated forfeitures, of the Company’s equity compensation plans as of October 29, 2016, 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
$
1,364

 
0.89
RSUs, including restricted stock units with market conditions
$
143,209

 
2.06
ESPP
$
17,522

 
1.10
Stock options  
Share-based Compensation Arrangement by Share-based Payment Award  
Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions
 
Fiscal Year Ended
 
October 29,
2016
 
October 31,
2015
 
November 1,
2014
Expected dividend yield
2.3
%
 
1.3
%
 
0.0% - 1.5%
Risk-free interest rate
0.0 - 1.3%

 
1.1 - 1.8%

 
0.7 - 2.3%
Expected volatility
32.1 - 39.0%

 
36.5
%
 
36.8 - 39.4%
Expected term (in years)
1.1 - 4.5

 
4.5

 
5.0
Schedule of Share-based Compensation, Stock Options, Activity
A summary of stock option activity under the equity compensation plans for the fiscal years ended October 29, 2016October 31, 2015, and November 1, 2014, is presented as follows:
 
Shares
(In thousands)
 
Weighted-Average
Exercise Price
 
Weighted-Average
Grant Date Fair Value
 
Weighted-Average
Remaining
Contractual Term
(In years)
 
Aggregate
Intrinsic
Value
(In thousands)
Outstanding as of October 26, 2013
12,561

 
$
6.19

 
 
 
2.37
 
$
24,784

Granted
1,770

 
$
9.03

 
$
3.16

 
 
 
 
Exercised
(6,971
)
 
$
5.93

 
 
 
 
 
$
24,240

Forfeited or expired
(1,161
)
 
$
8.93

 
 
 
 
 
 
Outstanding as of November 1, 2014
6,199

 
$
6.79

 
 
 
4.74
 
$
24,452

Granted
1,117

 
$
10.89

 
$
3.09

 
 
 
 
Exercised
(564
)
 
$
6.68

 
 
 
 
 
$
2,980

Forfeited or expired
(61
)
 
$
8.20

 
 
 
 
 
 
Outstanding as of October 31, 2015
6,691

 
$
7.47

 
 
 
4.37
 
$
20,252

Granted
1,395

 
$
9.30

 
$
0.88

 
 
 
 
Exercised
(371
)
 
$
6.05

 
 
 
 
 
$
1,258

Forfeited or expired
(47
)
 
$
8.88

 
 
 
 
 
 
Outstanding as of October 29, 2016
7,668

 
$
7.86

 
 
 
4.30
 
$
10,372

Vested and expected to vest as of October 29, 2016
7,486

 
$
7.82

 
 
 
4.26
 
$
10,353

Exercisable and vested as of October 29, 2016
5,377

 
$
7.25

 
 
 
3.62
 
$
9,643

Restricted stock units  
Share-based Compensation Arrangement by Share-based Payment Award  
Schedule of Share-based Compensation, Restricted Stock and Restricted Stock Units Activity
A summary of the changes in nonvested RSUs, including MSUs, under Brocade’s equity compensation plans during the fiscal years ended October 29, 2016October 31, 2015, and November 1, 2014, respectively, is presented as follows:
 
Shares
(In thousands)
 
Weighted-Average
Grant Date Fair Value
Nonvested as of October 26, 2013
22,761

 
$
3.85

Granted
11,582

 
$
9.69

Vested
(11,750
)
 
$
5.59

Forfeited
(3,594
)
 
$
6.01

Nonvested as of November 1, 2014
18,999

 
$
5.93

Granted
10,777

 
$
11.46

Vested
(8,317
)
 
$
7.81

Forfeited
(2,260
)
 
$
8.69

Nonvested as of October 31, 2015
19,199

 
$
9.82

Granted
19,143

 
$
7.92

Vested
(9,570
)
 
$
8.96

Forfeited
(3,755
)
 
$
9.84

Nonvested as of October 29, 2016
25,017

 
$
9.07

Vested and expected to vest as of October 29, 2016
21,093

 
$
9.10

Market-based stock units  
Share-based Compensation Arrangement by Share-based Payment Award  
Schedule of Share-based Compensation, Restricted Stock and Restricted Stock Units Activity
A summary of the changes in nonvested MSUs included in the above summary of changes in nonvested RSUs under Brocade’s equity compensation plans during the fiscal year ended October 29, 2016, is presented as follows:
 
Shares
(In thousands)
 
Weighted-Average
Grant Date Fair Value
Nonvested as of October 31, 2015
1,936

 
$
9.65

Granted
1,090

 
$
6.18

Vested
(560
)
 
$
8.93

Forfeited
(1,487
)
 
$
10.55

Nonvested as of October 29, 2016
979

 
$
8.94

Vested and expected to vest as of October 29, 2016
784

 
$
9.05

Employee stock purchase plan  
Share-based Compensation Arrangement by Share-based Payment Award  
Schedule of Share-based Payment Award, Employee Stock Purchase Plan, Valuation Assumptions
The fair value of the option component of the 2009 ESPP shares was estimated using the Black-Scholes option pricing model and the weighted-average assumptions noted in the following table:
 
Fiscal Year Ended
 
October 29,
2016
 
October 31,
2015
 
November 1,
2014
Expected dividend yield
2.3
%
 
1.4
%
 
1.4
%
Risk-free interest rate
0.7
%
 
0.3
%
 
0.2
%
Expected volatility
35.7
%
 
27.3
%
 
30.1
%
Expected term (in years)
1.4

 
1.2

 
1.3