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Stock-Based Compensation Expense and Shareholders' Equity (Tables)
 12 Months Ended
Jul. 31, 2020
Stockholders' Equity and Stock-based Compensation [Abstract]  
Stock-based compensation expense
Stock-based compensation expense related to options and Stock Awards is included in the Company’s consolidated statements of operations as follows (in thousands):
Fiscal years ended July 31,
202020192018
Stock-based compensation expense$102,191 $91,570 $89,176 
Net impact of deferred stock-based compensation(374)(54)438 
Total stock-based compensation expense$101,817 $91,516 $89,614 
Stock-based compensation expense was included in the following categories:
Cost of subscription and support revenue$7,575 $4,659 $2,842 
Cost of license revenue769 173 46 
Cost of services revenue20,816 22,781 21,856 
Research and development26,324 23,421 25,440 
Sales and marketing21,260 19,245 18,387 
General and administrative25,073 21,237 21,043 
Total stock-based compensation expense101,817 91,516 89,614 
Tax benefit from stock-based compensation28,360 29,159 24,481 
Total stock-based compensation expense, net of tax effect$73,457 $62,357 $65,133 
Schedule of Unrecognized Compensation Cost, Nonvested Awards
Total unrecognized stock-based compensation expense as of July 31, 2020 related to stock options and Stock Awards is as follows:
Unrecognized Expense
(in thousands)		Weighted Average Expected Recognition Period
(in years)
Stock options$675 0.7
Stock Awards205,236 2.4
Total unrecognized stock-based compensation expense$205,911 
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 AwardsWeighted Average Grant Date Fair Value
 Aggregate Intrinsic Value(1)
(in thousands)
Balance as of July 31, 20172,634,085 $56.62 $190,076 
Granted1,814,084 $79.65 
Released(1,260,758)$56.92 $103,957 
Canceled(255,256)$63.66 
Balance as of July 31, 20182,932,155 $69.43 $252,752 
Granted1,238,700 $100.01 
Released(1,398,676)$69.20 $133,050 
Canceled(387,506)$75.16 
Balance as of July 31, 20192,384,673 $85.20 $243,427 
Granted1,587,664 $106.65 
Released(1,217,337)$82.73 $121,915 
Canceled(309,302)$87.25 
Balance as of July 31, 20202,445,698 $99.34 $287,761 
Expected to vest as of July 31, 20202,445,698 $99.34 $287,761 

(1)    Aggregate intrinsic value at each fiscal year end represents the total market value of Stock Awards at the Company’s closing stock price of $117.66, $102.08, and $86.20 on July 31, 2020, 2019, and 2018, 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:
 Number of Stock Options Outstanding Weighted Average Exercise PriceWeighted Average Remaining Contractual Life
(in years)
 Aggregate Intrinsic Value(1)
(in thousands)
Balance as of July 31, 2017555,636 $22.17 4.0$27,777 
Granted(2)
137,057 $10.23 
Exercised(150,924)$13.32 $10,710 
Canceled(4,705)$40.05 
Balance as of July 31, 2018537,064 $21.45 4.3$34,774 
Granted— $— 
Exercised(301,901)$13.11 $24,731 
Canceled(18,436)$9.43 
Balance as of July 31, 2019216,727 $34.10 5.2$14,733 
Granted— $— 
Exercised(132,573)$37.37 $8,917 
Canceled(3,822)$10.99 
Balance as of July 31, 202080,332 $29.80 5.2$7,058 
Vested and expected to vest as of July 31, 202080,332 $29.80 5.2$7,058 
Exercisable as of July 31, 202069,849 $32.60 5.0$5,941 
(1)Aggregate intrinsic value at each fiscal year end represents the difference between the Company’s closing stock price of $117.66, $102.08, and $86.20 on July 31, 2020, 2019, and 2018, respectively, and the exercise price of the option. Aggregate intrinsic value for exercised options represents the difference between the Company’s stock price at date of exercise and the exercise price.
(2)Represents options assumed through the Cyence acquisition on November 1, 2017.
Schedule of Valuation Assumptions Using Monte Carlo Simulation Model
The fair values of the TSR PSUs were estimated at the grant date using a Monte Carlo simulation model which included the following assumptions:
Fiscal years ended July 31,
202020192018
Expected term (in years)2.902.882.88
Risk-free interest rate1.46%2.79%1.44%
Expected volatility of the Company28.4%27.2%28.0%
Average expected volatility of the peer companies in the S&P Index37.0%33.0%34.7%
Expected dividend yield—%—%—%
Stock options valuation assumptions The per share fair value of each stock option was determined using the Black-Scholes option-pricing model with the following assumptions:
Fiscal years ended July 31,
202020192018
Expected life (in years)**1.27
Risk-free interest rate**1.48%
Expected volatility**24.12%
Expected dividend yield**—%
Weighted average fair value of options granted
**$67.90
* There were no options granted during the fiscal years ended July 31, 2020 and 2019.
Common Stock Reserved for Issuance
As of July 31, 2020 and 2019, the Company was authorized to issue 500,000,000 shares of common stock with a par value of $0.0001 per share and, of these, 83,461,925 and 82,140,883 shares of common stock were issued and outstanding, respectively. As of July 31, 2020 and 2019, the Company had reserved shares of common stock for future issuance as follows:
July 31, 2020July 31, 2019
Exercise of stock options to purchase common stock80,332 216,727 
Vesting of restricted stock awards2,445,698 2,384,673 
Shares available for grant under stock plans23,460,234 24,776,361 
Total common stock reserved for issuance25,986,264 27,377,761