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Employee Benefit Plans (Tables)
 12 Months Ended
Oct. 31, 2020
Share-based Payment Arrangement [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, 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
 
 
Granted
2,041

 
$
168.15

 
 
 
 
Vested(1)
(1,480
)
 
$
88.70

 
 
 
$
261,563

Forfeited
(288
)
 
$
104.67

 
 
 
 
Balance at October 31, 2020
4,130

 
$
134.80

 
1.47
 
 
(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, 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

Options granted
(694
)
 
700

 
$
143.44

 
 
 
 
Options exercised
 
 
(1,891
)
 
$
51.76

 
 
 
 
Options canceled/forfeited/expired
102

 
(106
)
 
$
84.14

 
 
 
 
Restricted stock units granted(1)
(3,469
)
 
 
 
 
 
 
 
 
Restricted stock units forfeited(1)
482

 
 
 
 
 
 
 
 
Additional shares reserved
3,500

 
 
 
 
 
 
 
 
Balance at October 31, 2020
12,129

 
3,993

 
$
85.26

 
4.10
 
$
513,845

Exercisable at October 31, 2020
 
 
2,311

 
$
65.36

 
3.23
 
$
343,230

(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,
 
2020
 
2019
 
2018
 
(in thousands, except per share price)
Intrinsic value
$
218,640

 
$
110,815

 
$
71,840

Average exercise price per share
$
51.76

 
$
44.29

 
$
38.18
Summary of Restricted Stock Award Activities Under 2005 Directors Plan
Restricted stock award activities during fiscal 2020 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, 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

Granted
9

 
$
140.97

Vested
(11
)
 
$
116.43

Forfeited
—

 
$
—

Unvested at October 31, 2020
9

 
$
140.97
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,
 
2020
 
2019
 
2018
Stock Options
 
 
 
 
 
Expected life (in years)
4.1
 
4.1
 
4.1
Risk-free interest rate
0.26% - 1.71%
 
1.28% - 2.73%
 
2.10% - 2.95%
Volatility
23.05% - 32.80%
 
23.16% - 24.76%
 
20.22% - 21.04%
Weighted average estimated fair value
$33.02
 
$22.86
 
$23.55
ESPP
 
 
 
 
 
Expected life (in years)
0.5 - 2.0
 
0.5 - 2.0
 
0.5 - 2.0
Risk-free interest rate
0.09% - 1.24%
 
1.54% - 2.60%
 
1.80% - 2.73%
Volatility
25.59% - 43.06%
 
23.73% - 27.86%
 
19.99% - 21.54%
Weighted average estimated fair value
$47.69
 
$35.18
 
$23.34
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,
 
2020
 
2019
 
2018
 
(in thousands)
Cost of products
$
27,193

 
$
17,193

 
$
14,648

Cost of maintenance and service
9,327

 
6,385

 
5,467

Research and development expense
125,814

 
75,853

 
67,355

Sales and marketing expense
43,205

 
28,834

 
28,069

General and administrative expense
43,045

 
26,736

 
24,493

Stock-based compensation expense before taxes
248,584

 
155,001

 
140,032

Income tax benefit
(39,077
)
 
(26,226
)
 
(26,578
)
Stock-based compensation expense after taxes
$
209,507

 
$
128,775

 
$
113,454
Deferred Plan Assets and Liabilities
Deferred plan assets and liabilities are as follows:
 
As of October 31, 2020
 
As of October 31, 2019
 
(in thousands)
Plan assets recorded in other long-term assets
$
269,737

 
$
249,822

Plan liabilities recorded in other long-term liabilities(1)
$
269,737

 
$
249,822

(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,
 
2020
 
2019
 
2018
 
(in thousands)
Increase (reduction) to cost of revenue and operating expense
$
21,469

 
$
27,759

 
$
4,636

Other income (expense), net
21,469

 
27,759

 
4,636

Net increase (decrease) to net income
$
—

 
$
—

 
$
—