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Stock-Based Compensation (Tables)
3 Months Ended
Mar. 31, 2016
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]  
Summary and Allocation of Stock-Based Compensation Expense

The following table summarizes stock-based compensation expense recorded for the periods presented and its allocation within the condensed consolidated statements of operations (in thousands):

 

 

Three Months Ended

 

 

March 31,

2016

 

 

March 31,

2015

 

Cost of  product revenues

$

781

 

 

$

955

 

Cost of service revenues

 

1,111

 

 

 

1,308

 

Stock-based compensation expense included in cost

   of revenues

 

1,892

 

 

 

2,263

 

 

 

 

 

 

 

 

 

Sales and marketing

 

3,743

 

 

 

2,613

 

Research and development

 

2,029

 

 

 

2,573

 

General and administrative

 

3,816

 

 

 

1,783

 

Stock-based compensation expense included in

   operating expenses

 

9,588

 

 

 

6,969

 

Stock-based compensation expense related to employee

   equity awards and employee stock purchases

 

11,480

 

 

 

9,232

 

Tax benefit

 

2,245

 

 

 

1,529

 

Stock-based compensation expense related to employee

   equity awards and employee stock purchases,

   net of tax

$

9,235

 

 

$

7,703

 

 

Significant Assumptions Used to Estimate Fair Value of Employee Stock Purchase Plan

The fair value of each employee stock purchase right grant is estimated on the date of grant using the Black-Scholes option valuation model and is recognized as expense using the graded vesting method using the following assumptions:

 

 

Three Months Ended

 

 

March 31,

2016

 

 

March 31,

2015

 

Expected volatility

31.85-34.97%

 

 

30.04-30.73%

 

Risk-free interest rate

0.47-0.81%

 

 

0.07-0.49%

 

Expected dividends

 

0.0%

 

 

 

0.0%

 

Expected life (years)

0.5-2.0

 

 

0.5-2.0