Stock-Based Compensation (Tables)

9 Months Ended

Sep. 01, 2017

Disclosure of Compensation Related Costs, Share-based Payments [Abstract]

Restricted stock unit activity for the nine months ended September 1, 2017 and the fiscal year ended December 2, 2016 was as follows (in thousands):



	2017		2016
Beginning outstanding balance	8,316		10,069
Awarded	4,675		4,440
Released	(3,528	)	(5,471	)
Forfeited	(615	)	(722	)
Increase due to acquisition	595		—
Ending outstanding balance	9,443		8,316

Restricted Stock Units Outstanding

Information regarding restricted stock units outstanding at September 1, 2017 and September 2, 2016 is summarized below:



	Number of Shares (thousands)	Weighted Average Remaining Contractual Life (years)	Aggregate Intrinsic Value^(*) (millions)
2017
Restricted stock units outstanding	9,443	1.27	$	1,464.2
Restricted stock units vested and expected to vest	8,636	1.22	$	1,339.1
2016
Restricted stock units outstanding	8,398	1.25	$	869.7
Restricted stock units vested and expected to vest	7,597	1.19	$	775.2

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^(*)	The intrinsic value is calculated as the market value as of the end of the fiscal period. As reported by the NASDAQ Global Select Market, the market values as of September 1, 2017 and September 2, 2016 were $155.06 and $103.57, respectively.

Performance Share Activity

The following table sets forth the summary of performance share activity under our Performance Share Programs for the nine months ended September 1, 2017 and the fiscal year ended December 2, 2016 (in thousands):



	2017						2016
	Shares Granted				Maximum Shares Eligible to Receive		Shares Granted				Maximum Shares Eligible to Receive
Beginning outstanding balance	1,630				3,261		1,940				3,881
Awarded	1,082		⁽¹	⁾	1,040		1,206		⁽²	⁾	1,053
Achieved	(1,135	)			(1,147	)	(1,373	)			(1,387	)
Forfeited	(43	)			(86	)	(143	)			(286	)
Ending outstanding balance	1,534				3,068		1,630				3,261

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⁽¹⁾	Included in the 1.1 million shares awarded during the nine months ended September 1, 2017 were 0.6 million shares awarded for the final achievement of the 2014 Performance Share program. The remaining awarded shares were for the 2017 Performance Share Program.


⁽²⁾	Included in the 1.2 million shares awarded during the fiscal year ended December 2, 2016 were 0.7 million shares awarded for the final achievement of the 2013 Performance Share program. The remaining awarded shares were for the 2016 Performance Share Program.

Schedule of Share-based Payment Award, Employee Stock Purchase Plan, Valuation Assumptions [Table Text Block]

The expected life of the ESPP shares is the average of the remaining purchase periods under each offering period. The assumptions used to value employee stock purchase rights during the three and nine months ended September 1, 2017 and September 2, 2016 were as follows:



	Three Months		Nine Months
	2017	2016	2017	2016
Expected life (in years)	0.5 - 2.0	0.5 - 2.0	0.5 - 2.0	0.5 - 2.0
Volatility	25% - 27%	26% - 28%	22% - 27%	26% - 29%
Risk free interest rate	1.12% - 1.41%	0.37% - 0.59%	0.62% - 1.41%	0.37% - 1.06%

Schedule of Employee Service Share-based Compensation, Allocation of Recognized Period Costs

Total stock-based compensation costs included in our condensed consolidated statements of income for the three months ended September 1, 2017 and September 2, 2016 were as follows (in thousands):



	2017				2016
Income Statement Classifications	Option Grants and Stock Purchase Rights		Restricted Stock Units and Performance Share Awards		Option Grants and Stock Purchase Rights		Restricted Stock Units and Performance Share Awards
Cost of revenue—subscription	$	628	$	3,633	$	333	$	1,554
Cost of revenue—services and support	1,626		2,409		1,221		1,861
Research and development	4,608		43,243		3,336		26,388
Sales and marketing	4,658		36,064		3,940		27,798
General and administrative	1,140		19,033		976		17,097
Total	$	12,660	$	104,382	$	9,806	$	74,698

Total stock-based compensation costs included in our condensed consolidated statements of income for the nine months ended September 1, 2017 and September 2, 2016 were as follows (in thousands):



	2017				2016
Income Statement Classifications	Option Grants and Stock Purchase Rights		Restricted Stock Units and Performance Share Awards		Option Grants and Stock Purchase Rights		Restricted Stock Units and Performance Share Awards
Cost of revenue—subscription	$	1,899	$	10,467	$	1,119	$	5,115
Cost of revenue—services and support	4,850		7,151		4,087		5,494
Research and development	12,884		119,068		10,961		81,280
Sales and marketing	13,832		103,982		12,953		85,123
General and administrative	3,623		56,972		3,423		53,049
Total	$	37,088	$	297,640	$	32,543	$	230,061