Employee Stock and Savings Plans

Stock Options Plans and Stock Plans

Our 2010 Omnibus Incentive Plan (Incentive Plan) is administered by the Compensation Committee of our Board of Directors and permits accelerated vesting of outstanding options, restricted stock units, restricted stock awards, and other equity incentives upon the occurrence of certain changes in control of our company. Stock options and time-based restricted stock units under the Incentive Plan are generally expected to vest over four years. Stock options have an expiration date of ten years from the date of grant and an exercise price no less than the fair market value of the shares on the date of grant. Performance-based restricted stock units vest after three years and include goals for operating income margin. The source of shares issued under the Incentive Plan is new shares. We have not issued any options since fiscal year 2013. Our current equity strategy is to grant restricted stock units rather than options to ensure that we deliver value to our employees when there is volatility in the market.

As of January 31, 2016, a total of 4,181 shares of common stock were available for future grant under the Incentive Plan.

The following table summarizes restricted stock unit activity (including the target number of shares awarded for performance-based restricted stock units):



	Restricted Stock Units		Weighted Average Grant Date Fair Value		Weighted Average Remaining Contractual Term (Years)	Aggregate Intrinsic Value
Nonvested as of January 31, 2015	4,246		$	19.63
Granted	1,711		$	24.10
Vested	(1,586	)	$	17.35
Forfeited	(254	)	$	19.95
Nonvested as of January 31, 2016	4,117		$	22.35	1.62	$	71,561

The following table summarizes the fair value of restricted stock units vested:



Year ended January 31,	2016		2015		2014
Total fair value of restricted stock units vested	$	27,527	$	22,874	$	17,736

Stock options outstanding, the weighted average exercise price, and transactions involving stock options are summarized as follows:



	Options Outstanding		Weighted Average Exercise Price		Weighted Average Remaining Contractual Terms (Years)	Aggregate Intrinsic Value
Balance as of January 31, 2015	3,152		$	9.73
Granted	—		$	—
Exercised	(639	)	$	9.79
Forfeited	(26	)	$	16.20
Expired	(16	)	$	8.26
Balance as of January 31, 2016	2,471		$	9.66	3.98	$	19,085
Options exercisable as of January 31, 2016	2,395		$	9.42	3.90	$	19,058
Options vested as of January 31, 2016 and options expected to vest after January 31, 2016	2,471		$	9.66	3.98	$	19,085

The total intrinsic value of options exercised and cash received from options exercised was as follows:



Year ended January 31,	2016		2015		2014
Intrinsic value	$	9,440	$	4,601	$	26,769
Cash received	$	6,260	$	4,636	$	38,830

Employee Stock Purchase Plans

We have an ESPP for U.S. employees and an ESPP for certain foreign subsidiary employees. The ESPPs provide for six month offerings commencing on January 1 and July 1 of each year with purchases on June 30 and December 31 of each year. Each eligible employee may purchase up to six thousand shares of stock on each purchase date at prices no less than 85% of the lesser of the fair market value of the shares on the offering date or on the purchase date. As of January 31, 2016, 3,620 shares remain available for future purchase under the ESPPs.

The following table summarizes shares issued under the ESPPs and other associated information:



Year ended January 31,	2016		2015		2014
Shares issued under the ESPPs	1,538		1,389		1,554
Cash received for the purchase of shares under the ESPPs	$	26,511	$	25,642	$	23,895
Weighted average purchase price per share	$	17.24	$	18.47	$	15.38

Stock-Based Compensation Expense

The fair value of restricted stock units is the market value as of the grant date reduced by the value of expected dividends payable on our common stock prior to vesting.

The fair value of the purchase rights under our ESPPs is determined using a Black-Scholes option-pricing model. The Black-Scholes option-pricing model incorporates several highly subjective assumptions including expected volatility, expected term, and interest rates. The expected volatility for the purchase rights for our ESPPs is based on the historical volatility of our shares of common stock. The expected term for the purchase rights for our ESPPs is the 6 month offering period. The risk-free interest rate for periods within the contractual life of the purchase rights under our ESPPs is based on the U.S. Treasury yield curve in effect at the time of the grant.

The weighted average grant date fair values are summarized as follows:



Year ended January 31,	2016		2015		2014
Restricted stock units granted	$	24.10	$	21.52	$	22.42
ESPP purchase rights	$	5.08	$	4.81	$	4.30

The fair value calculations for ESPPs used the following assumptions:



Year ended January 31,	2016		2015		2014
Risk-free interest rate	0.08% - 0.31%		0.05% - 0.09%		0.09% - 0.14%
Dividend yield (range)	0.8% - 1.2%		0.8% - 0.9%		0.0% - 1.0%
Dividend yield (weighted average)	0.9	%	0.8	%	0.5	%
Expected life (in years)	0.5		0.5		0.5
Volatility (range)	23% - 36%		22% - 23%		22% - 33%
Volatility (weighted average)	25	%	22	%	29	%

The following table summarizes stock-based compensation expense included in the results of operations and the tax benefit associated with the exercise of stock options:



Year ended January 31,	2016		2015		2014
Cost of revenues:
Service and support	$	2,607	$	2,304	$	1,992
Operating expense:
Research and development	16,207		14,027		11,182
Marketing and selling	9,623		9,103		7,777
General and administration	12,060		10,373		8,399
Equity plan-related compensation expense	$	40,497	$	35,807	$	29,350
Tax effect of the exercise of stock options	$	217	$	280	$	386

As of January 31, 2016, we had $73,099 in unrecognized compensation cost related to nonvested restricted stock units which is expected to be recognized over a weighted average period of 1.4 years and $386 in unrecognized compensation cost related to nonvested options which is expected to be recognized over a weighted average period of 0.4 years.

Employee Savings Plan

We have an employee savings plan (the Savings Plan) that qualifies as a deferred salary arrangement under Section 401(k) of the Internal Revenue Code. Under the Savings Plan, participating U.S. employees may defer a portion of their pretax earnings, up to the Internal Revenue Service annual contribution limit. We currently match 50% of eligible employee’s contributions, up to a maximum of 6% of the employee’s earnings. Employer matching contributions vest over five years, 20% for each year of service completed. Our matching contributions to the Savings Plan were as follows:



Year ended January 31,	2016		2015		2014
Employer matching contribution	$	8,930	$	8,190	$	7,708