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Stock-Based Compensation Expense and Shareholders' Equity (Tables)
 9 Months Ended
Apr. 30, 2020
Stockholders' Equity and Stock-based Compensation [Abstract]  
Stock-based compensation expense
Stock-based compensation expense related to stock options and Stock Awards is included in the Company’s condensed consolidated statements of operations as follows (in thousands):
Three Months Ended April 30,Nine Months Ended April 30,
2020201920202019
Stock-based compensation expense$24,905  $21,130  $76,358  $68,669  
Net impact of deferred stock-based compensation(124) (80) (283) 88  
 Total stock-based compensation expense$24,781  $21,050  $76,075  $68,757  
Stock-based compensation expense is included in the following categories:
 Cost of license and subscription revenue$1,694  $589  $4,674  $1,458  
 Cost of maintenance revenue469  274  1,376  1,366  
 Cost of services revenue4,862  5,721  15,663  17,899  
 Research and development6,500  4,919  19,349  17,765  
 Sales and marketing4,990  4,731  16,143  14,426  
 General and administrative6,266  4,816  18,870  15,843  
 Total stock-based compensation expense$24,781  $21,050  $76,075  $68,757  
Unrecognized compensation cost, adjusted for estimated forfeitures
Total unrecognized stock-based compensation expense as of April 30, 2020 related to stock options and Stock Awards is as follows:
Unrecognized ExpenseWeighted Average Expected Recognition Period
(in thousands)(in years)
Stock Options$958  0.9
Stock Awards208,852  2.5
$209,810  
Schedule of Share-based Compensation, Restricted Stock Units Award Activity
A summary of the Company’s Stock Awards activity under the Company’s equity incentive plans is as follows:
 Stock Awards Outstanding
 Number of Stock Awards Outstanding Weighted Average Grant Date Fair Value
 Aggregate Intrinsic Value (in thousands)(1)
Balance as of July 31, 20192,384,673  $85.20  $243,427  
Granted1,367,381  $106.68  
Released(966,699) $81.50  $95,938  
Canceled(281,212) $86.19  
Balance as of April 30, 20202,504,143  $97.52  $227,476  
Expected to vest as of April 30, 20202,504,143  $97.52  $227,476  
(1) Aggregate intrinsic value at each period end represents the total market value of Stock Awards at the Company’s closing stock price of $90.84 and $102.08 on April 30, 2020 and July 31, 2019, respectively. Aggregate intrinsic value for released Stock Awards represents the total market value of released Stock Awards at date of release.
Schedule of Share-based Compensation, Stock Options, Activity
Stock option activity under the Company’s equity incentive plans is as follows:
 Stock Options Outstanding
 Number of Stock Options Outstanding Weighted Average Exercise PriceWeighted Average Remaining Contractual Life
 Aggregate Intrinsic Value
(1)
(in years) (in thousands)
Balance as of July 31, 2019216,727  $34.10  5.2$14,733  
Granted—  
Exercised(88,328) $34.85  $5,970  
Canceled(3,822) $10.99  
Balance as of April 30, 2020124,577  $34.28  5.1$7,046  
Vested and expected to vest as of April 30, 2020124,577  $34.28  5.1$7,046  
Exercisable as of April 30, 2020109,915  $37.38  4.9$5,877  
(1) Aggregate intrinsic value at each period end represents the difference between the Company’s closing stock prices of $90.84 and $102.08 on April 30, 2020 and July 31, 2019, respectively, and the exercise price of outstanding options. Aggregate intrinsic value for exercised options represents the difference between the Company’s stock price at date of exercise and the exercise price.
Schedule of Valuation Assumptions Using Monte Carlo Simulation Model The fair value of TSR PSUs is estimated at the date of grant using the Monte Carlo simulation model which included the following assumptions:
Three Months Ended April 30,Nine Months Ended April 30,
2020201920202019
Expected term (in years)**2.902.88
Risk-free interest rate**1.5%2.8%
Expected volatility of the Company**28.4%27.2%
Average expected volatility of the peer companies in the S&P Index**37.0%33.0%
Expected dividend yield**—%—%
*There were no TSR PSUs granted during the three months ended April 30, 2020 and 2019.
Common Stock Reserved for Issuance As of April 30, 2020 and July 31, 2019, the Company had reserved shares of common stock for future issuance as follows:
April 30, 2020July 31, 2019
 Exercise of stock options to purchase common stock124,577  216,727  
 Vesting of stock awards2,504,143  2,384,673  
 Shares available under stock plans23,652,427  24,776,361  
      Total common stock reserved for issuance26,281,147  27,377,761