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Equity Compensation Plans
 12 Months Ended
Aug. 29, 2024
Share-Based Payment Arrangement [Abstract]  
Equity Plans
Equity Compensation Plans

As of August 29, 2024, 69 million shares of our common stock were available for future awards under our equity compensation plans, including 11 million shares approved for issuance under our employee stock purchase plan (“ESPP”).
Restricted Stock and Restricted Stock Units (“Restricted Stock Awards”)

As of August 29, 2024, there were 28 million shares of Restricted Stock Awards outstanding, 24 million of which are only subject to service-based vesting conditions. Service-based Restricted Stock Awards granted through October 2021 generally vest in one-fourth or one-third increments during each year of employment after the grant date. Service-based Restricted Stock Awards granted after October 2021 generally vest on 25% or 33% of the units granted after the first year and on 6.25% or 8.33% each quarter thereafter over the remaining three or two years of employment. Restricted Stock Awards with performance or market-based vesting conditions vest over a 3-year period as conditions are met. At the end of the performance period, the number of actual shares to be awarded will vary between 0% and 200% of target amounts, depending upon the achievement level. In 2022, our Board of Directors approved dividend equivalent rights for unvested restricted stock units awarded on or after October 13, 2021.

Restricted Stock Awards activity for 2024 is summarized as follows:
Number of SharesWeighted-Average Grant Date Fair Value Per Share
Outstanding as of August 31, 2023
29 $59.11 
Granted13 72.72 
Vested
(12)57.92 
Forfeited
(2)60.42 
Outstanding as of August 29, 2024
28 65.82 

For the year ended202420232022
Restricted stock award shares granted131713
Weighted-average grant-date fair value per share$72.72 $55.99 $70.81 
Aggregate vesting-date fair value of shares vested
$1,008 $514 $498 

Employee Stock Purchase Plan (“ESPP”)

Our ESPP is offered to substantially all employees and permitted eligible employees to purchase shares of our common stock through payroll deductions of up to 15% of their eligible compensation, subject to certain limitations. The purchase price of the shares under the ESPP equals 85% of the lower of the fair market value of our common stock on either the first or last day of each six-month offering period. Compensation expense is calculated as of the beginning of the offering period as the fair value of the employees’ purchase rights utilizing the Black-Scholes option valuation model and is recognized over the offering period. Grant-date fair value and assumptions used in the Black-Scholes option valuation model were as follows:
For the year ended202420232022
Weighted-average grant-date fair value per share$26.82 $17.06 $18.87 
Average expected life in years0.50.50.5
Weighted-average expected volatility (based on implied volatility)41 %37 %43 %
Weighted-average risk-free interest rate5.2 %5.1 %2.0 %
Expected dividend yield0.5 %0.7 %0.6 %

Under the ESPP, employees purchased 4 million, 5 million, and 4 million shares of common stock in 2024, 2023, and 2022, respectively, at a per share weighted average price of $65.72, $51.93, and $58.52, respectively.

Stock Options

We last granted stock options in September 2018 and as of August 29, 2024, our outstanding stock options were not material. Stock options of 1.3 million shares were exercised in 2024. The total intrinsic value for options exercised was $92 million, $30 million, and $54 million in 2024, 2023, and 2022, respectively.
Stock-based Compensation Expense

For the year ended202420232022
Stock-based compensation expense by caption
Cost of goods sold$312 $201 $193 
Research and development296 226 175 
Selling, general, and administrative213 137 133 
Restructure— (7)(5)
$821 $557 $496 
Stock-based compensation expense by type of award
Restricted stock awards$749 $488 $429 
ESPP72 69 66 
Stock options— — 1 
$821 $557 $496 

Income tax benefits related to the tax deductions for share-based awards are recognized only upon the settlement of the related share-based awards. Income tax benefits for share-based awards were $140 million, $68 million, and $77 million for 2024, 2023, and 2022, respectively. Stock-based compensation expense of $99 million and $88 million was capitalized and remained in inventory as of August 29, 2024 and August 31, 2023, respectively. As of August 29, 2024, $1.44 billion of total unrecognized compensation costs for unvested awards, before the effect of any future forfeitures, was expected to be recognized through the fourth quarter of 2028, resulting in a weighted-average period of 1.2 years.