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Stock-Based Compensation
 9 Months Ended
Aug. 30, 2024
Share-Based Payment Arrangement [Abstract]  
STOCK-BASED COMPENSATION STOCK-BASED COMPENSATION
Restricted Stock Units
Restricted stock unit activity for the nine months ended August 30, 2024 was as follows:
Number of
Shares
(in millions)
Weighted Average
Grant Date
Fair Value
Aggregate
Fair Value (1)
(in millions)
Beginning outstanding balance7.8 $418.63 
Awarded2.9 $586.20 
Released(2.6)$441.45 
Forfeited(0.4)$449.34 
Ending outstanding balance7.7 $472.50 $4,436 
Expected to vest7.1 $471.45 $4,100 
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(1)    The aggregate fair value is calculated using the closing stock price as of August 30, 2024 of $574.41. 
The total fair value of restricted stock units vested during the nine months ended August 30, 2024 was $1.42 billion.
Performance Shares 
In the first quarter of fiscal 2024, the Executive Compensation Committee of our Board of Directors (the “ECC”) approved the 2024 Performance Share Program, the terms of which are similar to the 2023 Performance Share Program that is still outstanding. For information regarding our outstanding 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 December 1, 2023.
As of August 30, 2024, the performance shares awarded under our 2024, 2023 and 2022 Performance Share Programs remained outstanding and unvested.
Performance share activity for the nine months ended August 30, 2024 was as follows:
Number of
Shares
(in millions)
Weighted Average
Grant Date
Fair Value
Aggregate
Fair Value (1)
(in millions)
Beginning outstanding balance0.5 $465.71 
Awarded0.2 $645.40 
Released(0.1)$455.65 
Forfeited(0.1)$487.20 
Ending outstanding balance0.5 $536.74 $301 
Expected to vest0.5 $534.50 $277 
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(1)    The aggregate fair value is calculated using the closing stock price as of August 30, 2024 of $574.41. 
Under our Performance Share Programs, participants generally have the ability to receive up to 200% of the target number of shares originally granted. Shares released during the nine months ended August 30, 2024 resulted from 83% achievement of target for the 2021 Performance Share Program, as certified by the ECC in the first quarter of fiscal 2024.
The total fair value of performance shares vested during the nine months ended August 30, 2024 was $63 million.
Employee Stock Purchase Plan Shares
Employees purchased 1.2 million shares at an average price of $298.53 and 1.1 million shares at an average price of $286.31 for the nine months ended August 30, 2024 and September 1, 2023, respectively. The intrinsic value of shares purchased during the nine months ended August 30, 2024 and September 1, 2023 was $324 million and $185 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 August 30, 2024, there was $3.28 billion of unrecognized compensation cost, adjusted for estimated forfeitures, related to unvested stock-based awards and purchase rights which will be recognized over a weighted average period of 2.32 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 nine months ended August 30, 2024 and September 1, 2023 were as follows:
 Three MonthsNine Months
(in millions)2024202320242023
Cost of revenue$30 $30 $90 $88 
Research and development241 224 704 657 
Sales and marketing140 130 403 375 
General and administrative63 58 195 171 
Total$474 $442 $1,392 $1,291