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Stock-Based Compensation
 12 Months Ended
Nov. 30, 2021
Share-based Payment Arrangement [Abstract]  
Stock-Based Compensation Stock-Based Compensation
We currently have one stockholder-approved stock plan from which we can issue stock-based awards, which was approved by our stockholders in fiscal year 2008 ("2008 Plan"). The 2008 Plan replaced the 1992 Incentive and Nonqualified Stock Option Plan, the 1994 Stock Incentive Plan and the 1997 Stock Incentive Plan (collectively, the “Previous Plans”). The Previous Plans solely exist to satisfy outstanding options previously granted under those plans. The 2008 Plan permits the granting of stock awards to officers, members of the Board of Directors, employees and consultants. Awards under the 2008 Plan may include nonqualified stock options, incentive stock options, grants of conditioned or restricted stock, unrestricted grants of stock, grants of stock contingent upon the attainment of performance goals, deferred stock units and stock appreciation rights. In May 2021, stockholders of the Company approved an amendment to the 2008 Plan to add 4,500,000 shares to the plan. A total of 6,534,788 shares were available for issuance as of November 30, 2021.

We have adopted two stock plans for which the approval of stockholders was not required: the 2002 Nonqualified Stock Plan ("2002 Plan") and the 2004 Inducement Stock Plan ("2004 Plan"). The 2002 Plan permits the granting of stock awards to non-executive officer employees and consultants. Executive officers and members of the Board of Directors are not eligible for awards under the 2002 Plan. Awards under the 2002 Plan may include nonqualified stock options, grants of conditioned or restricted stock, unrestricted grants of stock, grants of stock contingent upon the attainment of performance goals and stock appreciation rights. A total of 107,329 shares were available for issuance under the 2002 Plan as of November 30, 2021. Additional shares cannot be added to the 2002 Plan without stockholder approval.

The 2004 Plan is reserved for persons to whom we may issue securities as an inducement to become employed by us pursuant to the rules and regulations of the NASDAQ Stock Market. Awards under the 2004 Plan may include nonqualified stock options, grants of conditioned or restricted stock, unrestricted grants of stock, grants of stock contingent upon the attainment of performance goals and stock appreciation rights. A total of 466,534 shares were available for issuance under the 2004 Plan as of November 30, 2021. Additional shares cannot be added to the 2002 Plan without stockholder approval.

Under all of our plans, the options granted generally begin to vest within one year of the grant.
A summary of stock option activity under all the plans is as follows:
 
 SharesWeighted AverageWeighted Average Remaining Contractual Term
Aggregate Intrinsic Value(1)
(in thousands)Exercise Price(in years)(in thousands)
Options outstanding, December 1, 20201,673 $39.28 
Granted645 43.17 
Exercised(195)35.82 
Canceled(108)42.85 
Options outstanding, November 30, 20212,015 $40.67 4.6$16,330 
Exercisable, November 30, 2021938 $38.84 3.6$9,509 
Vested or expected to vest, November 30, 20212,015 $40.67 4.6$16,330 

(1)The aggregate intrinsic value was calculated based on the difference between the closing price of our stock on November 30, 2021 of $48.46 and the exercise prices for all options outstanding.

A summary of restricted stock units' activity is as follows (in thousands, except per share data):
 
 Number of SharesWeighted Average Fair Value
Restricted stock units outstanding, December 1, 2020796 $42.63 
Granted551 43.73 
Issued(326)41.79 
Canceled(143)46.37 
Restricted stock units outstanding, November 30, 2021878 $43.06 

Each restricted stock unit represents one share of common stock. The restricted stock units generally vest semi-annually over a three-year period. Performance-based restricted stock units are subject to multi-year performance criteria aligned with our business plan and are earned only to the extent the performance criteria are achieved.

The fair value of outright stock awards, restricted stock units and DSUs is equal to the closing price of our common stock on the date of grant, less the present value of expected dividends when applicable. Beginning in fiscal year 2020, restricted stock units have forfeitable dividend equivalent rights equal to the dividend paid on our common stock.

During the first quarter of fiscal years 2019, 2020, and 2021, we granted performance-based restricted stock units that include two performance metrics under a Long-Term Incentive Plan (“LTIP”) where the performance measurement period is three years. Vesting of the LTIP awards for the 2019 and 2020 plans is based on the following: (i) 50% is based on achievement of a three-year cumulative performance condition (operating income), and (ii) 50% is based on our level of attainment of specified total stockholder return ("TSR") targets relative to the percentage appreciation of a specified index of companies for the respective three-year periods. For the 2021 plan, the vesting terms were changed to the following: (i) 75% is based on achievement of a three-year cumulative operating income, and (ii) 25% is based on our level of attainment of specified TSR targets relative to the percentage appreciation of a specified index of companies for the respective three-year periods. The vesting of LTIP awards is also subject to continued employment of the grantees. In order to estimate the fair value of such awards, we used a Monte Carlo Simulation valuation model for the market condition portion of the award and used the closing price of our common stock on the date of grant, less the present value of expected dividends when applicable, for the portion related to the performance condition.

The 1991 Employee Stock Purchase Plan ("ESPP") permits eligible employees to purchase up to an aggregate of 10,250,000 shares of our common stock through accumulated payroll deductions. The ESPP has a 27-month offering period comprised of nine three-month purchase periods. The purchase price of the stock is equal to 85% of the lesser of the market value of such shares at the beginning of a 27-month offering period or the end of each three-month segment within such offering period. If the market price at any of the nine purchase periods is less than the market price on the first date of the 27-month offering period, subsequent to the purchase, the offering period is canceled and the employee is entered into a new 27-month offering period with the then current market price as the new base
price. We issued 277,000 shares, 237,000 shares, and 189,000 shares with weighted average purchase prices of $28.20, $27.86, and $29.23 per share, respectively, in fiscal years 2021, 2020, and 2019, respectively. At November 30, 2021, approximately 687,000 shares were available and reserved for issuance under the ESPP.

We estimated the fair value of stock options and ESPP awards granted in fiscal years 2021, 2020, and 2019 on the measurement dates using the Black-Scholes option valuation model, and LTIP awards using the Monte Carlo Simulation valuation model, with the following weighted average assumptions:
 
Fiscal Year Ended
November 30, 2021November 30, 2020November 30, 2019
Stock options:
Expected volatility30.0 %29.0 %25.0 %
Risk-free interest rate0.5 %1.1 %2.5 %
Expected life (in years)4.84.84.8
Expected dividend yield1.6 %1.6 %1.8 %
Employee stock purchase plan:
Expected volatility33.1 %38.2 %30.6 %
Risk-free interest rate0.1 %0.2 %2.3 %
Expected life (in years)1.31.31.6
Expected dividend yield1.5 %2.0 %1.7 %
Long-term incentive plan:
Expected volatility36.3 %34.7 %32.2 %
Risk-free interest rate0.2 %1.1 %2.5 %
Expected life (in years)2.82.82.8
Expected dividend yield— %— %1.7 %

For each stock option award, the expected life in years is based on historical exercise patterns and post-vesting termination behavior. Expected volatility is based on historical volatility of our stock, and the risk-free interest rate is based on the U.S. Treasury yield curve for the period that is commensurate with the expected life at the time of grant. The expected annual dividend yield is based on the weighted-average of the dividend yield assumptions used for options granted during the applicable period.

For each ESPP award, the expected life in years is based on the period of time between the beginning of the offering period and the date of purchase, plus an additional holding period of three months.  Expected volatility is based on historical volatility of our stock, and the risk-free interest rate is based on the U.S. Treasury yield curve in effect at each purchase period. The expected annual dividend yield is based on the weighted-average of the dividend yield assumptions used for options granted during the applicable period.

Based on the above assumptions, the weighted average estimated fair value of stock options granted in fiscal years 2021, 2020, and 2019 was $9.46, $9.59, and $7.38 per share, respectively. We amortize the estimated fair value of stock options to expense over the vesting period using the straight-line method. The weighted average estimated fair value for shares issued under our ESPP in fiscal years 2021, 2020, and 2019 was $11.59, $8.73, and $11.07 per share, respectively. We amortize the estimated fair value of shares issued under the ESPP to expense over the vesting period using a graded vesting model.

Total unrecognized stock-based compensation expense, net of expected forfeitures, related to unvested stock options and unvested restricted stock awards amounted to $36.5 million at November 30, 2021. These costs are expected to be recognized over a weighted average period of two years.
The following additional activity occurred under our plans (in thousands):
 
Fiscal Year Ended
November 30, 2021November 30, 2020November 30, 2019
Total intrinsic value of stock options on date exercised$2,523 $1,340 $1,388 
Total fair value of deferred stock units on date vested2,084 1,547 1,853 
Total fair value of restricted stock units on date vested16,018 15,499 14,720 

The following table provides the classification of stock-based compensation as reflected in our consolidated statements of operations (in thousands):
 
Fiscal Year Ended
November 30, 2021November 30, 2020November 30, 2019
Cost of maintenance and services$1,561 $1,336 $1,134 
Sales and marketing6,055 4,462 4,155 
Product development8,104 7,286 7,205 
General and administrative14,004 10,398 10,817 
Total stock-based compensation$29,724 $23,482 $23,311 
Income tax benefit included in the provision for income taxes$5,281 $4,541 $4,661