Stock Compensation Plans

3 Months Ended

Apr. 30, 2020

Share-based Payment Arrangement [Abstract]

The following table summarizes the stock option, restricted stock unit (“RSU”), restricted stock award (“RSA”) and performance unit (“PSU”) award activity under our 2012 Equity Incentive Plan during the three months ended April 30, 2020:


		Options Outstanding							RSUs and PSUs Outstanding
	Shares Available for Grant	Shares	Weighted- Average Exercise Price Per Share		Weighted- Average Remaining Contractual Term	Aggregate Intrinsic Value⁽¹⁾		Shares
					(in years)	(in thousands)
Balances as of January 31, 2020	19,328,502	823,541	$	10.79	6.61	$	118,978	13,141,650
Additional shares authorized	7,889,377

Options exercised		(174,182)	8.14			20,889
Options forfeited and expired	41,563	(41,563)	12.69
RSUs and PSUs granted	(1,373,313)							1,373,313
RSUs and PSUs vested								(1,251,916)

Shares withheld related to net share settlement of RSUs and PSUs	372,335
RSUs and PSUs forfeited and canceled	456,310							(456,310)
Balances as of April 30, 2020	26,714,774	607,796	$	11.42	6.45	$	78,370	12,806,737
Vested and expected to vest		586,862	$	11.42	6.38	$	75,672	11,923,564
Exercisable as of April 30, 2020		238,276	$	11.72	3.55	$	30,652

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⁽¹⁾The intrinsic value is calculated as the difference between the exercise price of the underlying stock option award and the closing market price of our common stock as of April 30, 2020.

During the three months ended April 30, 2020 and 2019, upon each settlement date of our outstanding RSUs to current employees, RSUs were withheld to cover the required withholding tax, which was based on the value of the RSU on the settlement date as determined by the closing price of our common stock on the trading day of the applicable settlement date. The remaining shares were delivered to the recipient as shares of our common stock. The amount remitted to the tax authorities for the employees’ tax obligation was reflected as a financing activity on our condensed consolidated statements of cash flows. These shares withheld by us as a result of the net settlement of RSUs were not considered issued and outstanding, thereby reducing our shares outstanding used to calculate earnings per share. These shares were returned to the reserves and are available for future issuance under our 2012 Equity Incentive Plan.

During the three months ended April 30, 2020, we granted 318,514 PSUs to certain executives under our 2012 Equity Incentive Plan, which includes both PSUs awarded but not yet earned, as well as PSUs earned and eligible to vest. The number of PSUs earned and eligible to vest will be determined after a one-year performance period, based on achievement of certain company financial performance measures and the recipient’s continued service with us. The number of shares of our stock to be received based on financial performance measures can range from 0% to 200% of the target amount. Compensation expense for PSUs with financial performance measures is measured using the fair value at the date of grant and recorded over the four-year vesting period under the graded-vesting attribution method, and may be adjusted over the vesting period based on interim estimates of performance against the pre-set objectives. Additionally, beginning in fiscal 2019, our PSUs granted contain an additional market performance measure that can increase the number of shares earned by up to an additional 50% of the shares received based on the financial performance measure.

As of April 30, 2020, total unrecognized compensation cost related to stock options was $35.4 million, which is expected to be recognized over a weighted-average period of 2.2 years. As of April 30, 2020, total unrecognized compensation cost was $1.16 billion related to RSUs, which is expected to be recognized over the next 2.8 years. As of April 30, 2020, total unrecognized compensation cost was $92.2 million related to PSUs, which is expected to be recognized over the next 2.7 years. As of April 30, 2020, total unrecognized compensation cost related to RSAs was $58.1 million, which is expected to be recognized over the next 2.1 years.

The following table summarizes our RSA activity during the three months ended April 30, 2020:


						Shares
Outstanding as of January 31, 2020						857,793

RSAs vested						(72,304)

Outstanding as of April 30, 2020						785,489

The weighted-average grant date fair value of RSUs granted was $129.59 during the three months ended April 30, 2020. The weighted-average grant date fair value of PSUs granted was $136.75 per share during the three months ended April 30, 2020.