STOCK-BASED COMPENSATION
 3 Months Ended
Apr. 30, 2016
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]  
STOCK-BASED COMPENSATION
STOCK-BASED COMPENSATION

Stock-Based Compensation Expense

We recognized stock-based compensation expense in the following line items on the condensed consolidated statements of operations for the three months ended April 30, 2016 and 2015: 
 
 
Three Months Ended
April 30,
(in thousands)
 
2016
 
2015
Cost of revenue - product
 
$
113

 
$
135

Cost of revenue - service and support
 
1,391

 
461

Research and development, net
 
1,462

 
1,263

Selling, general and administrative
 
12,374

 
12,991

Total stock-based compensation expense
 
$
15,340

 
$
14,850



The following table summarizes stock-based compensation expense by type of award for the three months ended April 30, 2016, and 2015:
 
 
Three Months Ended
April 30,
(in thousands)
 
2016
 
2015
Restricted stock units and restricted stock awards
 
$
13,966

 
$
13,100

Stock bonus program and bonus share program
 
1,346

 
1,691

Total equity-settled awards
 
15,312

 
14,791

Phantom stock units (cash-settled awards)
 
28

 
59

Total stock-based compensation expense
 
$
15,340

 
$
14,850


 
Awards under our stock bonus and bonus share programs are accounted for as liability-classified awards, because the obligations are based predominantly on fixed monetary amounts that are generally known at inception of the obligation, to be settled with a variable number of shares of our common stock.

Restricted Stock Units
 
We periodically award restricted stock units ("RSUs") to our directors, officers, and other employees. These awards contain various vesting conditions and are subject to certain restrictions and forfeiture provisions prior to vesting.

The following table summarizes restricted stock unit activity and related information for the three months ended April 30, 2016:
(in thousands, except per share data)
 
Number of RSUs
 
Weighted-Average Grant Date Fair Value
RSUs outstanding, January 31, 2016
 
2,649

 
$
54.57

RSUs granted
 
1,605

 
$
35.26

RSUs released
 
(431
)
 
$
48.14

RSUs forfeited
 
(89
)
 
$
57.17

RSUs outstanding, April 30, 2016
 
3,734

 
$
46.95



Our restricted stock unit awards may include a provision which allows the awards to be settled with cash payments upon vesting, rather than with delivery of common stock, at the discretion of our board of directors. As of April 30, 2016, for such awards that are outstanding, settlement with cash payments was not considered probable, and therefore these awards have been accounted for as equity-classified awards.

With respect of our stock bonus program, activity presented in the table above only includes shares earned and released in consideration of the discount provided under that program. Consistent with the provisions of the plan under which such shares are issued, other shares issued under the stock bonus program are not included in the table above because they do not reduce available plan capacity (since such shares are deemed to be purchased by the grantee at fair value in lieu of receiving a cash bonus). Activity presented in the table above includes all shares awarded and released under the bonus share program. Further details appear below under "Stock Bonus Program" and "Bonus Share Program".

As of April 30, 2016, there was approximately $118.9 million of total unrecognized compensation expense, net of estimated forfeitures, related to unvested restricted stock units, which is expected to be recognized over a weighted-average period of 2.2 years. The unrecognized compensation expense does not include compensation expense related to shares for which a grant date has been established but the requisite service period has not begun.

Stock Bonus Program

Our stock bonus program permits eligible employees to receive a portion of their earned bonuses, otherwise payable in cash, in the form of discounted shares of our common stock. Executive officers are eligible to participate in this program to the extent that shares remain available for awards following the enrollment of all other participants. Shares awarded to executive officers with respect to the discount feature of the program are subject to a one-year vesting period. This program is subject to annual funding approval by our board of directors and an annual cap on the number of shares that can be issued. Subject to these limitations, the number of shares to be issued under the program for a given year is determined using a five-day trailing average price of our common stock when the awards are calculated, reduced by a discount determined by the board of directors each year (the "discount"). To the extent that this program is not funded in a given year or the number of shares of common stock needed to fully satisfy employee enrollment exceeds the annual cap, the applicable portion of the employee bonuses will generally revert to being paid in cash. Obligations under this program are accounted for as liabilities, because the obligations are based predominantly on fixed monetary amounts that are generally known at inception of the obligation, to be settled with a variable number of shares of common stock determined using a discounted average price of our common stock.

For the year ended January 31, 2016, our board of directors approved up to 125,000 shares of common stock for awards under the program and a discount of 15%. (the "2016 stock bonus program"). Awards earned under the 2016 stock bonus program are expected to be issued during the three months ended July 31, 2016.

In March 2016, our board of directors approved up to 125,000 shares of common stock, and a discount of 15%, for awards under our stock bonus program for the year ending January 31, 2017.

Bonus Share Program

Over the past several years, our board of directors authorized the use of shares of common stock available under our equity incentive plans to award discretionary bonuses to employees other than executive officers, subject to certain limitations on the aggregate number of shares that may be issued (the "bonus share program"). There is no discount feature associated with awards under the bonus share program. Similar to the accounting for the stock bonus program, obligations for these bonuses are accounted for as liabilities, because the obligations are based predominantly on fixed monetary amounts that are generally known, to be settled with a variable number of shares of common stock.

For bonuses in respect of the year ended January 31, 2016, the board of directors approved the use of up to 75,000 shares of common stock, plus any shares not used under the stock bonus program in respect of the year ended January 31, 2016, for awards under this program (not to exceed 200,000 shares in aggregate between the two programs). Shares awarded in respect of the bonus share program for the year ended January 31, 2016 are expected to be issued during the three months ended July 31, 2016.

In March 2016, our board of directors authorized the continuation of the bonus share program in respect of bonuses for the year ending January 31, 2017, and has approved up to 81,250 shares of common stock, plus any shares not used under the 2017 Stock Bonus Program, for awards under this program in respect of the year ending January 31, 2017 (not to exceed 206,250 shares in aggregate between the two programs).

The combined accrued liabilities for the stock bonus program and the bonus share program were $8.0 million and $6.6 million at April 30, 2016 and January 31, 2016, respectively.