Employee Stock and Savings Plans

Stock Option 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 estimate forfeitures based on our historical forfeiture rates. 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, 2017, a total of 4,980 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, 2016	4,117		$	22.35
Granted	2,008		$	23.82
Vested	(1,639	)	$	21.52
Forfeited	(143	)	$	22.15
Nonvested as of January 31, 2017	4,343		$	23.34	1.63	$	160,304

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



Fiscal year ended January 31,	2017		2016		2015
Total fair value of restricted stock units vested	$	35,264	$	27,527	$	22,874

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, 2016	2,471		$	9.66
Granted	—		$	—
Exercised	(294	)	$	10.10
Forfeited	—		$	—
Expired	(16	)	$	12.69
Balance as of January 31, 2017	2,161		$	9.57	3.21	$	59,069
Options exercisable as of January 31, 2017	2,161		$	9.57	3.21	$	59,069

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



Fiscal year ended January 31,	2017		2016		2015
Intrinsic value	$	4,408	$	9,440	$	4,601
Cash received	$	2,964	$	6,260	$	4,636

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, 2017, 5,848 shares remain available for future purchase under the ESPPs. The ESPPs were suspended subsequent to the purchase on December 31, 2016 as result of the merger agreement executed with Siemens.

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



Fiscal year ended January 31,	2017		2016		2015
Shares issued under the ESPPs	1,772		1,538		1,389
Cash received for the purchase of shares under the ESPPs	$	29,546	$	26,511	$	25,642
Weighted average purchase price per share	$	16.67	$	17.24	$	18.47

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 dividends, 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 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 expected term for the purchase rights for our ESPPs is the six month offering period.

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



Fiscal year ended January 31,	2017		2016		2015
Restricted stock units granted	$	23.82	$	24.10	$	21.52
ESPP purchase rights	$	5.22	$	5.08	$	4.81

The fair value calculations for ESPPs used the following assumptions:



Fiscal year ended January 31,	2017		2016		2015
Risk-free interest rate	0.31% - 0.40%		0.08% - 0.31%		0.05% - 0.09%
Dividend yield (range)	1.0% - 1.2%		0.8% - 1.2%		0.8% - 0.9%
Dividend yield (weighted average)	1.1	%	0.9	%	0.8	%
Expected life (in years)	0.5		0.5		0.5
Volatility (range)	36% - 48%		23% - 36%		22% - 23%
Volatility (weighted average)	41	%	25	%	22	%

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:



Fiscal year ended January 31,	2017		2016		2015
Cost of revenues:
Service and support	$	3,085	$	2,607	$	2,304
Operating expense:
Research and development	18,205		16,207		14,027
Marketing and selling	12,274		9,623		9,103
General and administration	13,229		12,060		10,373
Equity plan-related compensation expense	$	46,793	$	40,497	$	35,807
Tax effect of the exercise of stock options	$	114	$	217	$	280

As of January 31, 2017, we had $81,853 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.

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:



Fiscal year ended January 31,	2017		2016		2015
Employer matching contribution	$	9,212	$	8,930	$	8,190