Stock-Based Compensation Plans

3 Months Ended

Nov. 22, 2020

Share-based Payment Arrangement [Abstract]

Note 7—Stock-Based Compensation

The 2019 Incentive Plan authorized the issuance of 17,500,000 shares (10,000,000 RSUs) of common stock for future grants, plus the remaining shares that were available for grant and the future forfeited shares from grants under the previous plan, up to a maximum aggregate of 27,800,000 shares (15,885,000 RSUs). The Company issues new shares of common stock upon vesting of RSUs. Shares for vested RSUs are generally delivered to participants annually, net of shares withheld for taxes.

Summary of Restricted Stock Unit Activity

At November 22, 2020, 11,663,000 shares were available to be granted as RSUs, and the following awards were outstanding:

•4,262,000 time-based RSUs, which vest upon continued employment over specified periods;

•27,000 performance-based RSUs, granted to executive officers of the Company, for which the performance targets have been met. The awards vest upon continued employment over specified periods of time; and

•102,000 performance-based RSUs, granted to executive officers of the Company, subject to achievement of performance targets for fiscal 2021, as determined by the Compensation Committee of the Board of Directors after the end of the fiscal year. These awards are not included in the table below or in the amount of unrecognized compensation cost.

The following table summarizes RSU transactions during the first quarter of 2021:


	Number of Units (in 000s)	Weighted-Average Grant Date Fair Value
Outstanding at August 30, 2020	5,174	$	207.55
Granted	1,880	368.97
Vested and delivered	(2,744)	235.77
Forfeited	(21)	252.77

Outstanding at November 22, 2020	4,289	$	260.03

The remaining unrecognized compensation cost related to nonvested RSUs at November 22, 2020, was $1,045, and the weighted-average period over which this cost will be recognized is 1.8 years.

Summary of Stock-Based Compensation

The following table summarizes stock-based compensation expense and the related tax benefits:


	12 Weeks Ended
	November 22, 2020		November 24, 2019
Stock-based compensation expense	$	341	$	301
Less recognized income tax benefit	75		66
Stock-based compensation expense, net	$	266	$	235