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Stock-Based Compensation Expense and Shareholders' Equity
 3 Months Ended
Oct. 31, 2020
Stockholders' Equity and Stock-based Compensation [Abstract]  
Stock-Based Compensation Expense and Shareholders' Equity Stock-Based Compensation Expense and Shareholders’ Equity
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 October 31,
20202019
Stock-based compensation expense$28,394 $24,765 
Net impact of deferred stock-based compensation(310)(207)
 Total stock-based compensation expense$28,084 $24,558 
Stock-based compensation expense is included in the following categories:
 Cost of subscription and support revenue$2,602 $1,633 
 Cost of license revenue251 180 
 Cost of services revenue5,543 5,332 
 Research and development7,247 6,181 
 Sales and marketing5,977 5,157 
 General and administrative6,464 6,075 
 Total stock-based compensation expense$28,084 $24,558 
Total unrecognized stock-based compensation expense as of October 31, 2020 related to stock options and Stock Awards is as follows:
Unrecognized ExpenseWeighted Average Expected Recognition Period
(in thousands)(in years)
Stock Options$370 0.5
Stock Awards296,490 2.8
$296,860 

Stock Awards
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, 20202,445,698 $99.34 $287,761 
Granted1,112,046 $111.55 
Released(339,759)$90.29 $36,027 
Canceled(88,564)$100.38 
Balance as of October 31, 20203,129,421 $104.63 $300,769 
Expected to vest as of October 31, 20203,129,421 $104.63 $300,769 
(1) Aggregate intrinsic value at each period end represents the total market value of Stock Awards at the Company’s closing stock price of $96.11 and $117.66 on October 31, 2020 and July 31, 2020, respectively. Aggregate intrinsic value for released Stock Awards represents the total market value of released Stock Awards at date of release.
Certain executives and employees of the Company received PSUs and TSR PSUs in addition to RSUs. PSUs awarded in September 2021 will vest over three years with 50% vesting annually over the three year period and the remaining 50% vesting at the end of the third year. The TSR PSUs are subject to total shareholder return rankings of the Company's common stock relative to the software companies in the S&P Index for a specified period or periods, and vest at the end of three years. The Company recognized stock-based compensation related to these performance-based and market-based stock awards of $3.3 million and $3.4 million for the three months ended October 31, 2020 and 2019, respectively.
Stock Options
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, 202080,332 $29.80 5.2$7,058 
Granted— 
Exercised(39,169)$43.80 $2,461 
Canceled(654)$11.23 
Balance as of October 31, 202040,509 $16.56 5.8$3,222 
Vested and expected to vest as of October 31, 202040,509 $16.56 5.8$3,222 
Exercisable as of October 31, 202034,585 $17.48 5.7$2,719 
(1) Aggregate intrinsic value at each period end represents the difference between the Company’s closing stock price of $96.11 and $117.66 on October 31, 2020 and July 31, 2020, 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.

Valuation of Awards

TSR PSUs
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 October 31,
20202019
Expected term (in years)*2.9
Risk-free interest rate*1.5%
Expected volatility of the Company*28.4%
Average expected volatility of the peer companies in the S&P Index*37.0%
Expected dividend yield*—%
*There were no TSR PSUs granted during the three months ended October 31, 2020.

The number of TSR PSUs that may ultimately vest will vary based on the performance of the Company’s common stock relative to the shareholder return of the software companies in the S&P Index for a specified period or periods. The Monte Carlo methodology incorporates into the valuation all possible outcomes, including that the Company’s relative performance may result in no shares vesting. As a result, stock-based compensation expense is recognized regardless of the Company's ultimate achievement of the plan’s metrics. The expense will be reversed only in the event that a grantee is terminated prior to satisfying the requisite service period.

Common Stock Reserved for Issuance
As of October 31, 2020 and July 31, 2020, 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, 83,791,856 and 83,461,925 shares of common stock were issued and outstanding, respectively. Per the terms of the Company’s 2011 Stock Plan, on January first of each year, an additional number of shares equal to 5% of the number of shares of common stock issued and outstanding on the preceding December 31st may be added to the Company’s 2011 Stock Plan reserve. The Company elected not to increase the number of shares of common stock available for grant under this plan for the calendar year ended December 31, 2019. As of October 31, 2020 and July 31, 2020, the Company had reserved shares of common stock for future issuance as follows:
October 31, 2020July 31, 2020
 Exercise of stock options to purchase common stock40,509 80,332 
 Vesting of stock awards3,129,421 2,445,698 
 Shares available under stock plans21,720,159 23,460,234 
      Total common stock reserved for issuance24,890,089 25,986,264 

Stock Repurchase Program
In October 2020, the Company's board of directors authorized and approved a stock repurchase program of up to $200.0 million of the Company's outstanding common stock. During the three months ended October 31, 2020, the Company repurchased 48,997 shares of common stock at an average price of $102.05 per share, for an aggregate purchase price of $5.0 million. As of October 31, 2020, $195.0 million remained available for future share repurchases.