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Stock-Based Compensation | 6 Months Ended
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Jun. 04, 2021
Share-based Payment Arrangement [Abstract] |
STOCK-BASED COMPENSATION | STOCK-BASED COMPENSATION Restricted Stock Units Restricted stock unit activity for the six months ended June 4, 2021 was as follows:
| Number of Shares (in millions) |  | Weighted Average Grant Date Fair Value |  | Aggregate Fair Value(1) (in millions)
Beginning outstanding balance | 7.0 |  |  | $ | 285.69 |  |  |
Awarded | 2.8 |  |  | $ | 473.69 |  |  |
Released | (2.3) |  |  | $ | 261.70 |  |  |
Forfeited | (0.3) |  |  | $ | 322.65 |  |  |
Ending outstanding balance | 7.2 |  |  | $ | 365.95 |  |  | $ | 3,635 |
Expected to vest | 6.5 |  |  | $ | 362.62 |  |  | $ | 3,291 |
_________________________________________ (1) The aggregate fair value is calculated using the closing stock price as of June 4, 2021 of $504.50. The total fair value of restricted stock units vested during the six months ended June 4, 2021 was $1.10 billion. Performance Shares In the first quarter of fiscal 2021, the Executive Compensation Committee of our Board of Directors approved the 2021 Performance Share Program, the terms of which are similar to prior year programs that are still outstanding. For information regarding our Performance Share Programs including the terms, see “Note 12. Stock-Based Compensation” of our Annual Report on Form 10-K for the fiscal year ended November 27, 2020. As of June 4, 2021, the shares awarded under our 2021, 2020 and 2019 Performance Share Programs remain outstanding and are yet to be achieved. Performance share activity for the six months ended June 4, 2021 was as follows:
| Number of Shares (in millions) |  | Weighted Average Grant Date Fair Value |  | Aggregate Fair Value(1) (in millions)
Beginning outstanding balance | 0.7 |  |  | $ | 333.85 |  |  |
Awarded | 0.4 |  |  | $ | 325.24 |  |  |
Achieved | (0.4) |  |  | $ | 218.55 |  |  |
Forfeited | (0.1) |  |  | $ | 371.55 |  |  |
Ending outstanding balance | 0.6 |  |  | $ | 408.67 |  |  | $ | 314 |
Expected to vest | 0.6 |  |  | $ | 404.16 |  |  | $ | 281 |
_________________________________________ (1) The aggregate fair value is calculated using the closing stock price as of June 4, 2021 of $504.50. Under our Performance Share Programs, participants generally have the ability to receive up to 200% of the target number of shares originally granted. Shares achieved during the six months ended June 4, 2021 resulted from 200% achievement of target for the 2018 Performance Share Program, as certified by the Executive Compensation Committee in the first quarter of fiscal 2021. Shares awarded during the six months ended June 4, 2021 include 0.2 million additional shares awarded for the final achievement of the 2018 Performance Share Program. The remaining awarded shares were for the 2021 Performance Share Program. The total fair value of performance shares achieved during the six months ended June 4, 2021 was $212 million. Employee Stock Purchase Plan Employees purchased 0.4 million shares at an average price of $241.52 and 0.4 million shares at an average price of $196.45 for the six months ended June 4, 2021 and May 29, 2020, respectively. The intrinsic value of shares purchased during the six months ended June 4, 2021 and May 29, 2020 was $93 million and $56 million, respectively. The intrinsic value is calculated as the difference between the market value on the date of purchase and the purchase price of the shares. Compensation Costs As of June 4, 2021, there was $2.34 billion of unrecognized compensation cost, adjusted for estimated forfeitures, related to non-vested stock-based awards and purchase rights which will be recognized over a weighted average period of 2.36 years. Total unrecognized compensation cost will be adjusted for future changes in estimated forfeitures. Total stock-based compensation costs included in our condensed consolidated statements of income for the three and six months ended June 4, 2021 and May 29, 2020 were as follows:
| Three Months |  | Six Months
(in millions) | 2021 |  | 2020 |  | 2021 |  | 2020
Cost of revenue | $ | 17 |  |  | $ | 17 |  |  | $ | 34 |  |  | $ | 32 |
Research and development | 132 |  |  | 116 |  |  | 267 |  |  | 226 |
Sales and marketing | 73 |  |  | 65 |  |  | 146 |  |  | 130 |
General and administrative | 38 |  |  | 29 |  |  | 94 |  |  | 56 |
Total | $ | 260 |  |  | $ | 227 |  |  | $ | 541 |  |  | $ | 444 |

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