Stockholders' Equity

3 Months Ended

Jan. 31, 2021

Stockholders’ Equity

Mandatory Convertible Preferred Stock

On September 30, 2019, we completed an offering of approximately 4 million shares of 8.00% Mandatory Convertible Preferred Stock, Series A, $0.001 par value per share (“Mandatory Convertible Preferred Stock”).

On September 30, 2022, unless earlier converted, each outstanding share of Mandatory Convertible Preferred Stock will automatically convert into shares of our common stock at a rate between the then minimum and maximum conversion rates. At any time prior to September 30, 2022, holders may elect to convert each share of Mandatory Convertible Preferred Stock into shares of our common stock at the then minimum conversion rate. The conversion rates are subject to anti-dilution adjustments. As of January 31, 2021, the minimum conversion rate was 3.0637 and the maximum conversion rate was 3.5811.

We recognized $26 million and $27 million of accrued preferred stock dividends, which were presented as temporary equity on our condensed consolidated balance sheets as of January 31, 2021 and November 1, 2020, respectively.

Cash Dividends Declared and Paid


	Fiscal Quarter Ended
	January 31, 2021		February 2, 2020

	(In millions, except per share data)
Dividends per share to common stockholders	$	3.60	$	3.25
Dividends to common stockholders	$	1,468	$	1,297
Dividends per share to preferred stockholders	$	20.00	$	20.00
Dividends to preferred stockholders	$	75	$	75

Stock-Based Compensation Expense


	Fiscal Quarter Ended
	January 31, 2021		February 2, 2020

	(In millions)
Cost of products sold	$	20	$	31
Cost of subscriptions and services	12		12
Research and development	328		391
Selling, general and administrative	84		111
Total stock-based compensation expense	$	444	$	545

As of January 31, 2021, the total unrecognized compensation cost related to unvested stock-based awards was $3,637 million, which is expected to be recognized over the remaining weighted-average service period of 3.3 years.

Equity Incentive Award Plans

A summary of time- and market-based RSU activity is as follows:


	Number of RSUs Outstanding		Weighted-Average Grant Date Fair Value Per Share

	(In millions, except per share data)
Balance as of November 1, 2020	32		$	188.35

Granted	—	*	$	372.28
Vested	(2)		$	224.81
Forfeited	—	*	$	194.09
Balance as of January 31, 2021	30		$	188.32

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* Represents fewer than 1 million shares.

The aggregate fair value of time- and market-based RSUs that vested during the fiscal quarter ended January 31, 2021 was $664 million, which represents the market value of our common stock on the date that the RSUs vested. The number of RSUs vested included shares of common stock that we withheld for settlement of employees’ tax obligations due upon the vesting of RSUs.

A summary of time- and market-based stock option activity is as follows:


	Number of Options Outstanding		Weighted- Average Exercise Price Per Share		Weighted- Average Remaining Contractual Life (In years)	Aggregate Intrinsic Value

	(In millions, except years and per share data)
Balance as of November 1, 2020	1		$	62.35
Exercised	(1)		$	58.32		$	211

Balance as of January 31, 2021	—	*	$	69.63	0.4	$	126
Fully vested as of January 31, 2021	—	*	$	69.86	0.3	$	124
Fully vested and expected to vest as of January 31, 2021	—	*	$	69.63	0.4	$	126

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* Represents fewer than 1 million shares.