Stock Compensation Plans

9 Months Ended

Oct. 31, 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 nine months ended October 31, 2020:


	Options Outstanding						RSUs and PSUs Outstanding
	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	823,541	$	10.79	6.61	$	118,978	13,141,650
Additional shares authorized

Options exercised	(311,856)	9.90			45,817
Options forfeited and expired	(52,104)	12.94
RSUs and PSUs granted							2,177,411
RSUs and PSUs vested							(3,587,192)


RSUs and PSUs forfeited and canceled							(1,143,776)
Balances as of October 31, 2020	459,581	$	11.15	6.07	$	85,891	10,588,093
Vested and expected to vest	447,014	$	11.14	6.02	$	83,546	9,951,791
Exercisable as of October 31, 2020	190,974	$	10.92	3.51	$	35,735

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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 October 31, 2020.

During the nine months ended October 31, 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 nine months ended October 31, 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.

On October 27, 2020, the Compensation Committee of our Board of Directors approved a modification to the performance thresholds of our fiscal 2021 PSU awards. We accounted for this change as a Type III modification under ASC 718 as the expectation of the achievement of certain performance conditions related to these awards changed from improbable to probable post-modification. As a result, in the three months ended October 31, 2020, we reversed $10.8 million of stock-based compensation expense previously recognized for these awards. Post-modification stock-based compensation expense related to these awards will be recognized based on the modification date fair value over their remaining service period, under the graded-vesting attribution method.

The following table presents unrecognized compensation cost related to stock options, RSUs, PSUs and RSAs as of October 31, 2020:


	Unrecognized Compensation Cost (in thousands)		Weighted-Average Remaining Contractual Term (in years)
Stock options	$	25,902	1.8
RSUs	987,500		2.5
PSUs	95,020		1.2
RSAs	47,319		1.9
Total unrecognized compensation cost	$	1,155,741

The following table summarizes our RSA activity during the nine months ended October 31, 2020:


						Shares
Outstanding as of January 31, 2020						857,793
RSAs issued						23,475
RSAs vested						(344,794)
RSAs forfeited and canceled						(850)
Outstanding as of October 31, 2020						535,624

The weighted-average grant date fair value of RSUs granted was $155.42 per share during the nine months ended October 31, 2020. The weighted-average grant date fair value of PSUs granted was $205.02 per share during the nine months ended October 31, 2020. The weighted-average grant date fair value of RSAs granted was $194.07 per share during the nine months ended October 31, 2020.