Employee Benefit Plans (Tables)

12 Months Ended

Oct. 31, 2019

Disclosure of Compensation Related Costs, Share-based Payments [Abstract]

Restricted Stock Units

The following table contains information concerning activities related to restricted stock units:

	Restricted Stock Units		Weighted  Average Grant Date Fair Value		Weighted Average Remaining Contractual Life (In Years)	Aggregate Fair Value
	(in thousands, except per share and life amounts)
Balance at October 31, 2016	4,035		$	46.37	1.56
Granted	1,584		$	70.49
Vested(1)	(1,536	)	$	43.53		$	110,103
Forfeited	(240	)	$	49.36
Balance at October 31, 2017	3,843		$	57.26	1.54
Granted(2)	1,679		$	89.35
Vested(1)	(1,495	)	$	52.55		$	136,417
Forfeited	(258	)	$	67.04
Balance at October 31, 2018	3,769		$	72.75	1.46
Granted	1,844		$	119.27
Vested(1)	(1,508	)	$	65.97		$	176,659
Forfeited	(248	)	$	79.49
Balance at October 31, 2019	3,857		$	97.21	1.56

(1) The number of vested restricted stock units includes shares that were withheld on behalf of employees to satisfy the minimum statutory tax withholding requirements.

(2)

The Company assumed unvested restricted stock units from acquisitions including Black Duck.

Stock Options and Restricted Stock Units Under all Equity Plans (Except 2005 Directors Plan)

The following table contains additional information concerning activities related to stock options and restricted stock units under all equity plans, other than shares available for grant under the 2017 Directors Plan:

	Available for Grant(3)		Options(2)
			Options Outstanding		Weighted- Average Exercise Price per Share		Weighted- Average Remaining Contractual Life (In Years)	Aggregate Intrinsic Value
	(in thousands, except per share and life amounts)
Balance at October 31, 2016	11,244		6,755		$	39.59	4.65	$	126,850
Options granted	(1,505	)	1,536		$	68.18
Options assumed(2)			154		$	34.52
Options exercised			(1,770	)	$	34.56
Options canceled/forfeited/expired	129		(145	)	$	47.17
Restricted stock units granted(1)	(2,694	)
Restricted stock units forfeited(1)	409
Additional shares reserved	5,000
Balance at October 31, 2017	12,583		6,530		$	46.83	4.60	$	263,555
Options granted	(1,134	)	1,134		$	89.52
Options assumed(2)			141		$	18.66
Options exercised			(1,336	)	$	38.18
Options canceled/forfeited/expired	157		(178	)	$	51.82
Restricted stock units granted(1)	(2,541	)
Restricted stock units forfeited(1)	374
Additional shares reserved	3,000
Balance at October 31, 2018	12,439		6,291		$	55.63	4.39	$	214,432
Options granted	(799	)	799		$	113.17
Options exercised			(1,615	)	$	44.29
Options canceled/forfeited/expired	129		(185	)	$	58.02
Restricted stock units granted(1)	(3,134	)
Restricted stock units forfeited(1)	373
Additional shares reserved	3,200
Balance at October 31, 2019	12,208		5,290		$	65.57	4.08	$	373,112
Exercisable at October 31, 2019			3,135		$	53.11	3.22	$	260,203

(1) These amounts do not reflect the actual number of restricted stock units granted or forfeited but rather the effect on the total remaining shares available for future grants after the application of the share reserve ratio. For more information about the share reserve ratio, please see Restricted Stock Units above.

(2) The Company assumed options outstanding under various plans through acquisitions.

(3)

Excluding shares reserved for future issuance under the 2017 Directors Plan.

Pretax Intrinsic Value of Options Exercised and Their Average Exercise Prices

The pretax intrinsic value of options exercised and their average exercise prices were:

	Year Ended October 31,
	2019		2018		2017
	(in thousands, except per share price)
Intrinsic value	$	110,815	$	71,840	$	67,089
Average exercise price per share	$	44.29	$	38.18	$	34.56

Summary of Restricted Stock Award Activities Under 2005 Directors Plan

Restricted stock award activities during fiscal 2019 under the 2005 Directors Plan and 2017 Directors Plan are summarized as follows:

	Restricted Shares		Weighted-Average Grant Date Fair Value
	(in thousands, except per share)
Unvested at October 31, 2016	43		$	45.97
Granted	20		$	71.34
Vested	(22	)	$	44.33
Forfeited	(3	)	$	47.65
Unvested at October 31, 2017	38		$	59.89
Granted	15		$	82.96
Vested	(32	)	$	62.09
Forfeited	(1	)	$	48.27
Unvested at October 31, 2018	20		$	73.95
Granted	11		$	116.43
Vested	(20	)	$	73.95
Forfeited	—		$	—
Unvested at October 31, 2019	11		$	116.43

Stock Option Plans and Stock Purchase Rights Granted Under ESPP

The assumptions presented in the following table were used to estimate the fair value of stock options and employee stock purchase rights granted under the Company’s stock plans or stock plans assumed from acquisitions:

	Year Ended October 31,
	2019	2018	2017
Stock Options
Expected life (in years)	4.1	4.1	4.1
Risk-free interest rate	1.28% - 2.73%	2.10% - 2.95%	1.73% - 2.06%
Volatility	23.16% - 24.76%	20.22% - 21.04%	18.51% - 19.67%
Weighted average estimated fair value	$22.86	$23.55	$13.56
ESPP
Expected life (in years)	0.5 - 2.0	0.5 - 2.0	0.5 - 2.0
Risk-free interest rate	1.54% - 2.60%	1.80% - 2.73%	0.82% - 1.37%
Volatility	23.73% - 27.86%	19.99% - 21.54%	17.20% - 19.99%
Weighted average estimated fair value	$35.18	$23.34	$18.77

Stock Compensation Expense

The compensation cost recognized in the consolidated statements of operations for the Company's stock compensation arrangements was as follows:

	Year Ended October 31,
	2019			2018			2017
	(in thousands)
Cost of products	$	17,193		$	14,648		$	12,553
Cost of maintenance and service	6,385			5,467			3,918
Research and development expense	75,853			67,355			52,933
Sales and marketing expense	28,834			28,069			21,001
General and administrative expense	26,736			24,493			17,889
Stock-based compensation expense before taxes	155,001			140,032			108,294
Income tax benefit	(26,226		)	(26,578		)	(30,950		)
Stock-based compensation expense after taxes	$	128,775		$	113,454		$	77,344

Deferred Plan Assets and Liabilities

Deferred plan assets and liabilities are as follows:

	As of October 31, 2019		As of October 31, 2018
	(in thousands)
Plan assets recorded in other long-term assets	$	249,822	$	212,165
Plan liabilities recorded in other long-term liabilities(1)	$	249,822	$	212,165

(1)

Undistributed deferred compensation balances due to participants.

Summary of Impact of Deferred Plan

The following table summarizes the impact of the Deferred Plan:

	Year Ended October 31,
	2019		2018		2017
	(in thousands)
Increase (reduction) to cost of revenue and operating expense	$	27,759	$	4,636	$	29,606
Other income (expense), net	27,759		4,636		29,606
Net increase (decrease) to net income	$	—	$	—	$	—