Stock-based Compensation (Tables)

3 Months Ended

Dec. 28, 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 three months ended December 28, 2019	Number of RSUs (in thousands)		Weighted- Average Grant Date Fair Value Per RSU
Balance of outstanding restricted stock units October 1, 2019	3,232		$	80.52
Granted	1,266		$	76.65
Vested	(903	)	$	67.64
Forfeited or not earned	(477	)	$	85.15
Balance of outstanding restricted stock units December 28, 2019	3,118		$	81.94

Schedule of Restricted Stock Unit Grants for the Period

(in thousands)	Restricted Stock Units
Grant Period	Performance-based RSUs (1)	Service-based RSUs (2)	Total Shareholder Return RSUs (3)
First three months of 2020	89	1,088	89

_________________

(1) The performance-based RSUs were granted to our executive officers and 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, 2020, November 15, 2021 and November 15, 2022, or the date the Compensation Committee determines the extent to which the applicable performance criteria have been achieved for each performance period.

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

(3)

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

Schedule of Valuation Assumptions

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

Average volatility of peer group	28.0	%
Risk free interest rate	1.59	%
Dividend yield	—	%

Schedule of Classification of Compensation Expense

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

(in thousands)	Three months ended
	December 28, 2019		December 29, 2018
Cost of license revenue	$	—	$	322
Cost of support and cloud services revenue	1,486		975
Cost of professional services revenue	1,557		1,814
Sales and marketing	7,452		9,722
Research and development	6,932		4,900
General and administrative	10,509		11,674
Total stock-based compensation expense	$	27,936	$	29,407