Stock-based Compensation (Tables)

3 Months Ended

Dec. 31, 2016



Restricted stock unit activity for the three months ended December 31, 2016	Shares		Weighted Average Grant Date Fair Value (Per Share)
	(in thousands)
Balance of outstanding restricted stock units October 1, 2016	3,776		$	37.30
Granted	1,391		$	50.58
Vested	(1,029	)	$	36.14
Forfeited or not earned	(522	)	$	37.10
Balance of outstanding restricted stock units December 31, 2016	3,616		$	42.77

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(1)	The TSR units were granted to our executive officers pursuant to the terms described below.


(2)	The performance-based RSUs were granted to our executive officers and are eligible to vest based on the achievement of performance criteria for fiscal 2017 established by the Compensation Committee at the time of grant. Shares not earned will be forfeited. The shares will vest in three substantially equal installments on November 15, 2017, November 15, 2018 and November 15, 2019.


(3)	The service-based RSUs were granted to employees and our executive officers. All service-based RSUs will vest in three substantially equal annual installments on or about the anniversary of the date of grant.

The significant assumptions used in the Monte Carlo simulation model were as follows:



Average volatility of peer group	29.3	%
Risk free interest rate	0.99	%
Dividend yield	—	%

Compensation expense recorded for our stock-based awards was classified in our Consolidated Statements of Operations as follows:



	Three months ended
	December 31, 2016		January 2, 2016
	(in thousands)
Cost of software revenue	$	1,437	$	1,905
Cost of professional services revenue	1,457		1,451
Sales and marketing	3,621		4,282
Research and development	2,997		2,513
General and administrative	8,476		13,038
Total stock-based compensation expense	$	17,988	$	23,189