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Stock-Based Compensation (Tables) | 6 Months Ended
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Jun. 01, 2018
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] |
Restricted Stock Unit Activity | Restricted stock unit activity for the six months ended June 1, 2018 and the fiscal year ended December 1, 2017 was as follows (in thousands):
| 2018 |  | 2017
Beginning outstanding balance | 9,304 |  |  | 8,316 |
Awarded | 3,324 |  |  | 5,018 |
Released | (3,206 | ) |  | (3,859 | )
Forfeited | (376 | ) |  | (766 | )
Increase due to acquisition | — |  |  | 595 |
Ending outstanding balance | 9,046 |  |  | 9,304 |
Restricted Stock Units Outstanding | Information regarding restricted stock units outstanding at June 1, 2018 and June 2, 2017 is summarized below:
| Number of Shares (thousands) |  | Weighted Average Remaining Contractual Life (years) |  | Aggregate Intrinsic Value(*) (millions)
2018 |  |  |  |  |
Restricted stock units outstanding | 9,046 |  |  | 1.36 |  | $ | 2,273.3 |
Restricted stock units vested and expected to vest | 8,224 |  |  | 1.30 |  | $ | 2,066.9 |
2017 |  |  |  |  |  |  |
Restricted stock units outstanding | 9,655 |  |  | 1.42 |  | $ | 1,385.4 |
Restricted stock units vested and expected to vest | 8,741 |  |  | 1.36 |  | $ | 1,254.2 |
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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 June 1, 2018 and June 2, 2017 were $251.31 and $143.48, respectively.
Performance Share Activity | The following table sets forth the summary of performance share activity under our Performance Share Programs for the six months ended June 1, 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 | (120 | ) |  | (240 | ) |  | (43 | ) |  | (86 | )
Ending outstanding balance | 1,201 |  |  | 2,402 |  |  | 1,534 |  |  | 3,068 |
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(1) | Included in the 0.8 million shares awarded during the six months ended June 1, 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 | There were no stock purchases under the Employee Stock Purchase Plan (“ESPP”) during the three months ended June 1, 2018 and June 2, 2017. 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 six months ended June 1, 2018 and June 2, 2017 were as follows:
| 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 June 1, 2018 and June 2, 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 | $ | 729 |  |  | $ | 4,526 |  |  | $ | 878 |  |  | $ | 4,673 |
Cost of revenue—services and support | 1,647 |  |  | 2,680 |  |  | 1,501 |  |  | 1,677 |
Research and development | 5,301 |  |  | 63,608 |  |  | 4,435 |  |  | 42,539 |
Sales and marketing | 5,443 |  |  | 42,747 |  |  | 4,801 |  |  | 35,439 |
General and administrative | 1,350 |  |  | 17,346 |  |  | 1,262 |  |  | 19,615 |
Total | $ | 14,470 |  |  | $ | 130,907 |  |  | $ | 12,877 |  |  | $ | 103,943 |
Total stock-based compensation costs included in our condensed consolidated statements of income for the six months ended June 1, 2018 and June 2, 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 | $ | 1,497 |  |  | $ | 8,470 |  |  | $ | 1,271 |  |  | $ | 6,834 |
Cost of revenue—services and support | 3,663 |  |  | 5,666 |  |  | 3,224 |  |  | 4,742 |
Research and development | 10,649 |  |  | 117,681 |  |  | 8,467 |  |  | 75,633 |
Sales and marketing | 10,763 |  |  | 81,595 |  |  | 9,189 |  |  | 67,904 |
General and administrative | 2,830 |  |  | 38,088 |  |  | 2,492 |  |  | 37,931 |
Total | $ | 29,402 |  |  | $ | 251,500 |  |  | $ | 24,643 |  |  | $ | 193,044 |

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