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Stock-Based Compensation | 9 Months Ended
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Jul. 31, 2023
Share-Based Payment Arrangement [Abstract] |
Stock-Based Compensation | Stock-Based Compensation The compensation cost recognized in the condensed consolidated statements of income for our stock compensation arrangements was as follows:
| Three Months Ended July 31, |  | Nine Months Ended July 31,
| 2023 |  | 2022 |  | 2023 |  | 2022
| (in thousands)
Cost of products | $ | 16,732 |  |  | $ | 15,318 |  |  | $ | 49,656 |  |  | $ | 39,603 |
Cost of maintenance and service | 7,765 |  |  | 6,859 |  |  | 22,451 |  |  | 17,335 |
Research and development expense | 75,754 |  |  | 68,243 |  |  | 220,340 |  |  | 175,892 |
Sales and marketing expense | 27,723 |  |  | 22,998 |  |  | 79,567 |  |  | 60,090 |
General and administrative expense | 16,490 |  |  | 14,187 |  |  | 49,935 |  |  | 40,517 |
Stock-based compensation expense before taxes | 144,464 |  |  | 127,605 |  |  | 421,949 |  |  | 333,437 |
Income tax benefit | (23,172) |  |  | (20,940) |  |  | (67,681) |  |  | (54,717) |
Stock-based compensation expense after taxes | $ | 121,292 |  |  | $ | 106,665 |  |  | $ | 354,268 |  |  | $ | 278,720 |
During the three and nine months ended July 31, 2023, we recognized stock-based compensation expense relating to restricted stock units (RSUs) granted to senior executives with certain market, performance and service conditions (market-based RSUs). The grant date fair value of the market-based RSUs and the assumptions used in the Monte Carlo simulation model to determine the grant date fair value during the periods were as follows:
| Three Months Ended July 31, |  | Nine Months Ended July 31,
| 2023 |  | 2022 |  | 2023 |  | 2022
Expected life (in years) | — |  |  | 1.41 years |  | 0.90 years - 2.70 years |  | 1.41 years - 1.69 years
Risk-free interest rate | — |  |  | 2.25 | % |  | 4.36% - 4.63% |  | 1.33% - 2.25%
Volatility | — |  |  | 37.27 | % |  | 35.84% - 42.86% |  | 33.01% - 37.27%
Grant date fair value | — |  |  | $ | 355.41 |  |  | $357.29 - $408.55 |  | $280.82 - $355.41
As of July 31, 2023, we had $1.1 billion of total unrecognized stock-based compensation expense relating to options, RSUs and restricted stock awards, which is expected to be recognized over a weighted-average period of 2.4 years. As of July 31, 2023, we had $48.5 million of unrecognized stock-based compensation expense relating to our Employee Stock Purchase Plan, which is expected to be recognized over a period of approximately 2.0 years. The intrinsic values of equity awards exercised during the periods were as follows:
| Three Months Ended July 31, |  | Nine Months Ended July 31,
| 2023 |  | 2022 |  | 2023 |  | 2022
| (in thousands)
Intrinsic value of awards exercised | $ | 94,116 |  |  | $ | 86,080 |  |  | $ | 212,339 |  |  | $ | 245,468 |

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