Share-based Awards (Tables)

3 Months Ended

May 31, 2019

Disclosure of Compensation Related Costs, Share-based Payments [Abstract]

The following summarizes share-based compensation expense recognized in the Company’s Consolidated Financial Statements (in thousands):



	Three Months Ended
	May 31, 2019		May 31, 2018
Cost of revenue	$	4,945	$	5,128
Sales and marketing	21,904		19,520
Research and development	16,002		14,782
General and administrative	7,317		6,575
Total share-based compensation expense ⁽¹⁾	$	50,168	$	46,005

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⁽¹⁾

Total share-based compensation expense included $1.7 million and $4.0 million, respectively, of expense related to the Company’s employee stock purchase plan (“ESPP”) for the three months ended May 31, 2019 and May 31, 2018.

Summary of Share-Based Awards Granted During Period

The following table summarizes the Company’s share-based awards granted, by type:



	Three Months Ended
	May 31, 2019				May 31, 2018
	Shares and Share Units Underlying Awards		Weighted Average Per Share Award Fair Value		Shares and Share Units Underlying Awards		Weighted Average Per Share Award Fair Value
Service-based shares and share units	885,436	⁽¹⁾⁽²⁾	$	183.37	669,450	⁽¹⁾	$	160.53
Performance share units—target	—		$	—	173,014		$	163.56
Performance share awards	—		$	—	64,219	⁽²⁾	$	163.56
Total share-based awards	885,436		$	183.37	906,683		$	161.32

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⁽¹⁾

Service-based shares and share units granted during the three months ended May 31, 2019 include 639,439 share units that vest over a three-year period with one-third vesting on the first anniversary of the grant date and one-twelfth vesting quarterly over the remaining two years and 56,487 share units that vest over a three-year period with one-third vesting annually over the three-year period. Service-based share units granted during the three months ended May 31, 2018 vest over a four-year period with one-quarter vesting annually over the four- year period.

⁽²⁾

Service-based shares and share units granted during the three months ended May 31, 2019 include 189,510 restricted stock awards that vest over a three-year period with one-third vesting annually over the three-year period. Restricted stock awards granted during the three months ended May 31, 2018 were subject to the achievement of a specified dollar amount of revenue for fiscal 2019 (the “RSA Performance Goal”). Since the Company achieved the RSA Performance Goal, 25% of the restricted stock vests on or about July 16, 2019, and the remainder vests ratably on a quarterly basis over the course of the subsequent three-year period, provided that the grantee’s business relationship with the Company has not ceased.