Stock-based Compensation (Tables)

9 Months Ended

Jun. 27, 2020

Share Based Compensation Allocation And Classification In Financial Statements [Abstract]

Schedule of Restricted Stock Unit Activity

Restricted stock unit activity for the nine months ended June 27, 2020	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		2,361		$	77.04
Vested		(1,369	)	$	71.42
Forfeited or not earned		(580	)	$	84.01
Balance of outstanding restricted stock units, June 27, 2020		3,644		$	81.11

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 nine months of 2020		101		2,159		101

(1) The performance-based RSUs were granted to our executives and are eligible to vest based upon annual increasing performance measures over a three-year period.  RSUs not earned in either of the first two measurement periods 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.  Up to a maximum of two times the number of RSUs can be earned (a maximum aggregate of 202 thousand RSUs).

(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 RSUs (TSR RSUs) were granted to our executives 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				Nine months ended
	June 27, 2020		June 29, 2019		June 27, 2020		June 29, 2019
Cost of license revenue	$	11	$	78	$	22	$	448
Cost of support and cloud services revenue		1,569		1,141		4,579		3,274
Cost of professional services revenue		1,585		1,345		4,607		5,065
Sales and marketing		9,407		5,870		24,005		25,114
Research and development		5,583		4,761		17,280		14,851
General and administrative		7,030		2,039		23,112		22,856
Total stock-based compensation expense	$	25,185	$	15,234	$	73,605	$	71,608