Stock-based Compensation (Tables)

9 Months Ended

Jun. 29, 2019

Share-based Payment Arrangement, Expensed and Capitalized, Amount [Abstract]

Schedule of Restricted Stock and Restricted Stock Unit Activity

Restricted stock unit activity for the nine months ended June 29, 2019	Shares		Weighted Average Grant Date Fair Value (Per Share)
	(in thousands)
Balance of outstanding restricted stock units October 1, 2018	3,284		$	65.93
Granted (1)	1,793		$	82.98
Vested	(1,478	)	$	54.95
Forfeited or not earned	(346	)	$	64.65
Balance of outstanding restricted stock units June 29, 2019	3,253		$	80.51

 _________________

(1) Restricted stock granted includes 141,000 shares from prior period TSR awards that were earned upon achievement of the performance criteria and vested in November 2018.

Schedule of Restricted Stock Unit Grants for the Period

	Restricted Stock Units
Grant Period	Performance-based RSUs (1)	Service-based RSUs (2)
	(Number of Units in thousands)
First nine months of 2019	376	1,276

_________________

(1) Substantially all the performance-based RSUs were granted to our executive officers. Approximately 160,000 shares are eligible to vest based upon annual increasing performance measures over a three-year period. RSUs not earned for a period may be earned in the third period. To the extent earned, those performance-based RSUs will vest in three substantially equal installments on November 15, 2019, November 15, 2020 and November 15, 2021, or the date the Compensation Committee determines the extent to which the applicable performance criteria have been achieved for each performance period. An additional 213,000 performance-based RSUs are eligible to be earned based upon a 2019 performance measure, which RSUs will be forfeited to the extent the performance measure is not achieved. These RSUs will vest, to the extent earned, in three substantially equal installments on November 15, 2019, 2020 and 2021.

(2)

The service-based RSUs were granted to employees, including our executive officers, and members of our board of directors. Substantially all service-based RSUs will vest in three substantially equal annual installments on or about the anniversary of the date of grant.

Schedule of Classification of Compensation Expense

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

	Three months ended					Nine months ended
	June 29, 2019		June 30, 2018			June 29, 2019		June 30, 2018
	(in thousands)
Cost of license revenue	$	78	$	(46	)	$	448	$	(30	)
Cost of support and cloud services revenue	1,141		994			3,274		3,297
Cost of professional services revenue	1,345		1,471			5,065		4,846
Sales and marketing	5,870		4,910			25,114		14,827
Research and development	4,761		3,283			14,851		9,626
General and administrative	2,039		6,046			22,856		19,449
Total stock-based compensation expense	$	15,234	$	16,658		$	71,608	$	52,015