Stock-based Compensation (Tables)

9 Months Ended

Jul. 01, 2017



Restricted stock unit activity for the nine months ended July 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	1,932		$	51.24
Vested	(1,564	)	$	36.02
Forfeited or not earned	(622	)	$	37.51
Balance of outstanding restricted stock units July 1, 2017	3,522		$	45.48

_________________


(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, our executive officers and our directors. 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				Nine months ended
	July 1, 2017		July 2, 2016		July 1, 2017		July 2, 2016
	(in thousands)
Cost of license and subscription revenue	$	347	$	195	$	954	$	552
Cost of support revenue	1,139		963		3,638		3,611
Cost of professional services revenue	1,505		1,342		4,500		4,072
Sales and marketing	3,296		3,195		11,047		11,254
Research and development	2,805		2,531		9,753		7,578
General and administrative	7,482		5,570		26,247		24,754
Total stock-based compensation expense	$	16,574	$	13,796	$	56,139	$	51,821