Stock-based Compensation (Tables)

6 Months Ended

Apr. 01, 2017



Restricted stock unit activity for the six months ended April 1, 2017	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	1,457		$	50.78
Vested	(1,125	)	$	35.83
Forfeited or not earned	(583	)	$	37.31
Balance of outstanding restricted stock units April 1, 2017	3,525		$	43.34

_________________


(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 earned 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				Six months ended
	April 1, 2017		April 2, 2016		April 1, 2017		April 2, 2016
	(in thousands)
Cost of software revenue	$	1,669	$	1,100	$	3,106	$	3,005
Cost of professional services revenue	1,539		1,279		2,995		2,730
Sales and marketing	4,130		3,777		7,751		8,059
Research and development	3,951		2,534		6,948		5,047
General and administrative	10,288		6,146		18,765		19,184
Total stock-based compensation expense	$	21,577	$	14,836	$	39,565	$	38,025