Stock-Based Compensation (Tables)

3 Months Ended

Mar. 02, 2018

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

Restricted stock unit activity for the three months ended March 2, 2018 and the fiscal year ended December 1, 2017 was as follows (in thousands):



	2018		2017
Beginning outstanding balance	9,304		8,316
Awarded	2,996		5,018
Released	(2,950	)	(3,859	)
Forfeited	(155	)	(766	)
Increase due to acquisition	—		595
Ending outstanding balance	9,195		9,304

Restricted Stock Units Outstanding

Information regarding restricted stock units outstanding at March 2, 2018 and March 3, 2017 is summarized below:



	Number of Shares (thousands)	Weighted Average Remaining Contractual Life (years)	Aggregate Intrinsic Value^(*) (millions)
2018
Restricted stock units outstanding	9,195	1.52	$	1,928.9
Restricted stock units vested and expected to vest	8,259	1.47	$	1,732.6
2017
Restricted stock units outstanding	9,822	1.59	$	1,002.3
Restricted stock units vested and expected to vest	8,646	1.53	$	882.2

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^(*)	The intrinsic value is calculated as the market value as of the end of the fiscal period. As reported by the NASDAQ Global Select Market, the market values as of March 2, 2018 and March 3, 2017 were $209.79 and $120.04, respectively.

Performance Share Activity

The following table sets forth the summary of performance share activity under our Performance Share Programs for the three months ended March 2, 2018 and the fiscal year ended December 1, 2017 (in thousands):



	2018					2017
	Shares Granted			Maximum Shares Eligible to Receive		Shares Granted			Maximum Shares Eligible to Receive
Beginning outstanding balance	1,534			3,068		1,630			3,261
Awarded	837		⁽¹⁾	628		1,082		⁽²⁾	1,040
Achieved	(1,050	)		(1,054	)	(1,135	)		(1,147	)
Forfeited	(35	)		(70	)	(43	)		(86	)
Ending outstanding balance	1,286			2,572		1,534			3,068

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⁽¹⁾	Included in the 0.8 million shares awarded during the three months ended March 2, 2018 were 0.5 million shares awarded for the final achievement of the 2015 Performance Share program. The remaining awarded shares were for the 2018 Performance Share Program.


⁽²⁾	Included in the 1.1 million shares awarded during the fiscal year ended December 1, 2017 were 0.6 million shares awarded for the final achievement of the 2014 Performance Share program. The remaining awarded shares were for the 2017 Performance Share Program.

Schedule of Share-based Payment Award, Employee Stock Purchase Plan, Valuation Assumptions

The expected life of the ESPP shares is the average of the remaining purchase periods under each offering period. The assumptions used to value employee stock purchase rights during the three months ended March 2, 2018 and March 3, 2017 were as follows:



	Three Months
	2018	2017
Expected life (in years)	0.5 - 2.0	0.5 - 2.0
Volatility	26% - 27%	22% - 25%
Risk free interest rate	1.54% - 1.89%	0.62% - 1.2%

Schedule of Employee Service Share-based Compensation, Allocation of Recognized Period Costs

Total stock-based compensation costs included in our condensed consolidated statements of income for the three months ended March 2, 2018 and March 3, 2017 were as follows (in thousands):



	2018				2017
Income Statement Classifications	Option Grants and Stock Purchase Rights		Restricted Stock Units and Performance Share Awards		Option Grants and Stock Purchase Rights		Restricted Stock Units and Performance Share Awards
Cost of revenue—subscription	$	768	$	3,944	$	393	$	2,161
Cost of revenue—services and support	2,016		2,986		1,723		3,065
Research and development	5,349		54,072		4,032		33,094
Sales and marketing	5,320		38,848		4,388		32,465
General and administrative	1,480		20,742		1,230		18,316
Total	$	14,933	$	120,592	$	11,766	$	89,101