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Capital Stock (Tables)
 12 Months Ended
Dec. 31, 2016
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]  
Reserved Shares of Common Stock

The Company had reserved shares of common stock, on an as if converted basis, for issuance as follows:

 

 

 

As of December 31,

 

 

 

2016

 

 

2015

 

Issuance in connection with outstanding stock options

 

 

1,570,765

 

 

 

1,949,089

 

Issuance in connection with restricted stock units outstanding

 

 

1,994,790

 

 

 

1,898,025

 

Reserved for future stock option and restricted stock unit

   grants

 

 

2,464,181

 

 

 

1,726,346

 

Reserved for future issuance under the employee stock

   purchase plan

 

 

1,161,396

 

 

 

1,049,524

 

 

 

 

7,191,132

 

 

 

6,622,984

 

 
Summary of Option Activity under Plans and Related Information

The following table summarizes option activity under the Plans and related information:

 

 

 

Options Outstanding

 

 

Weighted-

Average

Remaining

 

 

 

 

 

 

 

Number of

Shares

 

 

Weighted

Average

Exercise Price

 

 

Contractual

Term

(in years)

 

 

Aggregate

Intrinsic Value

(in thousands) (1)

 

Outstanding - December 31, 2013

 

 

1,675,506

 

 

$

23.78

 

 

 

8.01

 

 

$

40,813

 

Granted

 

 

1,256,559

 

 

$

41.39

 

 

 

 

 

 

 

 

 

Options assumed in acquisitions

 

 

72,607

 

 

$

13.30

 

 

 

 

 

 

 

 

 

Exercised or released

 

 

(496,297

)

 

$

14.85

 

 

 

 

 

 

 

 

 

Cancelled or forfeited

 

 

(264,012

)

 

$

35.85

 

 

 

 

 

 

 

 

 

Outstanding - December 31, 2014

 

 

2,244,363

 

 

$

33.83

 

 

 

8.27

 

 

$

38,457

 

Granted

 

 

696,971

 

 

$

49.20

 

 

 

 

 

 

 

 

 

Exercised or released

 

 

(636,424

)

 

$

29.44

 

 

 

 

 

 

 

 

 

Cancelled or forfeited

 

 

(355,821

)

 

$

42.00

 

 

 

 

 

 

 

 

 

Balances - December 31, 2015

 

 

1,949,089

 

 

$

39.27

 

 

 

8.09

 

 

$

47,480

 

Granted

 

 

48,260

 

 

$

53.59

 

 

 

 

 

 

 

 

 

Exercised or released

 

 

(184,737

)

 

$

29.24

 

 

 

 

 

 

 

 

 

Cancelled or forfeited

 

 

(241,847

)

 

$

47.35

 

 

 

 

 

 

 

 

 

Balances - December 31, 2016

 

 

1,570,765

 

 

$

39.64

 

 

 

6.90

 

 

$

9,226

 

Vested and expected to vest - December 31, 2016

 

 

1,463,772

 

 

$

39.03

 

 

 

6.82

 

 

$

9,061

 

Exercisable - December 31, 2016

 

 

967,186

 

 

$

36.66

 

 

 

6.31

 

 

$

7,339

 

 

(1)

The aggregate intrinsic value is calculated as the difference between the exercise price of the underlying awards and the closing stock price of $38.40 of the Company’s common stock on December 31, 2016
Additional Information Regarding Company's Stock Options Outstanding and Exercisable

Additional information regarding the Company’s stock options outstanding and exercisable as of December 31, 2016 is summarized below:

 

 

 

Options Outstanding

 

 

Options Exercisable

 

Exercise Prices

 

Number of

Stock Options

Outstanding

 

 

Weighted

Average

Remaining

Contractual

Life (Years)

 

 

Weighted

Average

Exercise Price

per Share

 

 

Shares Subject

to Stock Options

 

 

Weighted

Average

Exercise Price

per Share

 

$0.02 to $10.70

 

 

134,548

 

 

 

4.02

 

 

$

7.01

 

 

 

130,579

 

 

$

7.22

 

$10.71 to $29.10

 

 

168,845

 

 

 

6.66

 

 

$

25.73

 

 

 

121,118

 

 

$

25.37

 

$29.11 to $32.54

 

 

236,906

 

 

 

7.51

 

 

$

29.40

 

 

 

116,285

 

 

$

29.53

 

$32.55 to $34.55

 

 

149,082

 

 

 

5.09

 

 

$

33.78

 

 

 

133,559

 

 

$

33.76

 

$34.56 to $54.48

 

 

464,660

 

 

 

7.68

 

 

$

43.41

 

 

 

240,153

 

 

$

43.04

 

$54.49 to $61.50

 

 

248,776

 

 

 

7.21

 

 

$

55.16

 

 

 

149,677

 

 

$

54.92

 

$61.51 to $69.19

 

 

143,729

 

 

 

7.42

 

 

$

65.04

 

 

 

68,611

 

 

$

64.52

 

$69.20 to $77.00

 

 

24,219

 

 

 

8.50

 

 

$

71.73

 

 

 

7,204

 

 

$

71.74

 

 

 

 

1,570,765

 

 

 

6.90

 

 

$

39.64

 

 

 

967,186

 

 

$

36.66

 

 
Summary of RSU Activity Outstanding and Weighted Average Grant Date Fair Value

A summary of RSU activity for the year ended December 31, 2016, is as follows:

 

 

 

Number of

Restricted

Stock Units

Outstanding

 

 

Weighted-

Average Grant

Date Fair Value

 

Unvested - December 31, 2014

 

 

2,279,081

 

 

$

39.07

 

Granted

 

 

911,734

 

 

$

53.02

 

Granted, performance RSUs

 

 

249,220

 

 

$

42.58

 

Released

 

 

(898,205

)

 

$

34.97

 

Cancelled or expired

 

 

(643,805

)

 

$

35.09

 

Unvested - December 31, 2015

 

 

1,898,025

 

 

$

49.53

 

Granted

 

 

1,160,062

 

 

$

47.42

 

Granted, performance RSUs

 

 

273,900

 

 

$

51.55

 

Released

 

 

(884,349

)

 

$

43.04

 

Cancelled or forfeited

 

 

(452,848

)

 

$

49.86

 

Unvested - December 31, 2016

 

 

1,994,790

 

 

$

51.42

 

 
Stock-Based Compensation Expense

The Company recognized stock-based compensation expense under the 2011 Stock Option and Incentive Plan, 2003 Stock Plan, Inducement Plans, 2011 Employee Stock Purchase Plan, and the Incapsula 2010 Share Incentive Plan in the consolidated statements of operations as follows (in thousands):

 

 

 

Years Ended December 31,

 

 

 

2016

 

 

2015

 

 

2014

 

Cost of revenue

 

$

4,664

 

 

$

3,862

 

 

$

2,058

 

Research and development

 

 

14,711

 

 

 

13,831

 

 

 

8,799

 

Sales and marketing

 

 

20,510

 

 

 

16,717

 

 

 

13,558

 

General and administrative

 

 

17,131

 

 

 

16,554

 

 

 

12,858

 

Restructuring charges

 

 

5,859

 

 

 

-

 

 

 

-

 

Total stock-based compensation expense

 

$

62,875

 

 

$

50,964

 

 

$

37,273

 

 
Weighted Average Assumptions for Fair Value of Stock Options Grants and ESPP Grants

A summary of the weighted-average assumptions is as follows:

 

 

 

Years Ended December 31

 

 

 

2016

 

 

2015

 

 

2014

 

Stock option grants:

 

 

 

 

 

 

 

 

 

 

 

 

Dividend rate

 

 

0

%

 

 

0

%

 

 

0

%

Risk-free interest rate

 

 

1.4

%

 

 

1.8

%

 

 

1.8

%

Expected term (in years)

 

 

6.0

 

 

 

6.1

 

 

 

6.1

 

Expected volatility

 

 

58

%

 

 

49

%

 

 

46

%

ESPP grants:

 

 

 

 

 

 

 

 

 

 

 

 

Dividend rate

 

 

0

%

 

 

0

%

 

 

0

%

Risk-free interest rate

 

 

0.5

%

 

 

0.4

%

 

 

0.1

%

Expected term (in years)

 

 

0.5

 

 

 

0.5

 

 

 

0.5

 

Expected volatility

 

 

58

%

 

 

65

%

 

 

45

%