Common Stock and Stockholders’ Equity

Common Stock

As of April 30, 2017, there were 131 million shares of Class A common stock and 75 million shares of Class B common stock outstanding. The rights of the holders of Class A common stock and Class B common stock are identical, except with respect to voting and conversion. Each share of Class A common stock is entitled to one vote per share and each share of Class B common stock is entitled to ten votes per share. Each share of Class B common stock can be converted into a share of Class A common stock at any time at the option of the holder.

Employee Equity Plans

Our 2012 Equity Incentive Plan ("EIP") serves as the successor to our 2005 Stock Plan (together with the EIP, the "Stock Plans"). Pursuant to the terms of the EIP, the share reserve increased by 10 million shares in March 2017, and as of April 30, 2017, we had approximately 62 million shares of Class A common stock available for future grants.

We also have a 2012 Employee Stock Purchase Plan ("ESPP"). Under the ESPP, eligible employees are granted options to purchase shares at the lower of 85% of the fair market value of the stock at the time of grant or 85% of the fair market value at the time of exercise. Options to purchase shares are granted twice yearly on or about June 16 and December 16 and exercisable on or about the succeeding December 15 and June 15, respectively, of each year. Pursuant to the terms of the ESPP, the share reserve increased by 2 million shares in March 2017. As of April 30, 2017, 8 million shares of Class A common stock were available for issuance under the ESPP.

Stock Options

The Stock Plans provide for the issuance of incentive and nonstatutory options to employees and non-employees. Options issued under the Stock Plans generally are exercisable for periods not to exceed 10 years and generally vest over five years. A summary of information related to stock option activity during the three months ended April 30, 2017 is as follows:



	Outstanding Stock Options		Weighted- Average Exercise Price		Aggregate Intrinsic Value (in millions)
Balance as of January 31, 2017	9,096,592		$	4.34	$	716
Stock option grants	—		—
Stock options exercised	(625,290	)	3.60
Stock options canceled	(3,575	)	9.08
Balance as of April 30, 2017	8,467,727		$	4.39	$	703
Vested and expected to vest as of April 30, 2017	8,465,367		$	4.39	$	703
Exercisable as of April 30, 2017	8,364,499		$	4.32	$	695

As of April 30, 2017, there was a total of $2 million in unrecognized compensation cost related to unvested stock options which is expected to be recognized over a weighted-average period of approximately 6 months.

Restricted Stock Units

The Stock Plans provide for the issuance of restricted stock units ("RSUs") to employees. RSUs generally vest over four years. A summary of information related to RSU activity during the three months ended April 30, 2017 is as follows:



	Number of Shares		Weighted-Average Grant Date Fair Value
Balance as of January 31, 2017	11,502,721		$	78.45
RSUs granted	5,726,171		83.77
RSUs vested	(1,987,516	)	76.70
RSUs forfeited	(272,289	)	71.93
Balance as of April 30, 2017	14,969,087		$	80.84

As of April 30, 2017, there was a total of $1.1 billion in unrecognized compensation cost related to unvested RSUs, which is expected to be recognized over a weighted-average period of approximately 3.1 years.

Performance-based Restricted Stock Units

During fiscal 2017, 0.3 million shares of performance-based restricted stock units ("PRSUs") were granted to all employees other than executive management and included performance conditions related to company-wide goals and service conditions. These performance conditions were met and the PRSUs vested on March 15, 2017. During the three months ended April 30, 2017, we recognized $6 million in compensation cost related to these PRSUs.