Shareholders’ Equity

Stock-based Compensation Expense

The following tables present the Company’s stock-based compensation for equity-settled awards by type and financial statement line as well as the related tax benefit included in the Company’s Condensed Consolidated Statements of Operations:



	Three Months Ended						Nine Months Ended
	March 29, 2019			March 30, 2018			March 29, 2019			March 30, 2018
	(in millions)
Options	$	3		$	6		$	12		$	19
Restricted and performance stock units	71			89			208			260
Employee stock purchase plan	10			8			22			20
Subtotal	84			103			242			299
Tax benefit	(14		)	(17		)	(39		)	(51		)
Total	$	70		$	86		$	203		$	248



	Three Months Ended						Nine Months Ended
	March 29, 2019			March 30, 2018			March 29, 2019			March 30, 2018
	(in millions)
Cost of revenue	$	13		$	11		$	37		$	37
Research and development	41			45			122			134
Selling, general and administrative	30			46			83			127
Employee termination, asset impairment, and other charges	—			1			—			1
Subtotal	84			103			242			299
Tax benefit	(14		)	(17		)	(39		)	(51		)
Total	$	70		$	86		$	203		$	248

Compensation cost related to unvested stock options, restricted stock unit awards (“RSUs”), performance-based restricted stock unit awards (“PSUs”), and rights to purchase shares of common stock under the Company’s Employee Stock Purchase Plan (“ESPP”) will generally be amortized on a straight-line basis over the remaining average service period. The following table presents the unamortized compensation cost and weighted average service period of all unvested outstanding awards as of March 29, 2019:



	Unamortized Compensation Costs		Weighted Average Service Period
	(in millions)		(years)
Options	$	12	1.2
RSUs and PSUs ⁽¹⁾	577		2.5
ESPP	62		1.7
Total unamortized compensation cost	$	651


⁽¹⁾	Weighted average service period assumes the performance metrics are met for the PSUs.

Plan Activities

Stock Options

The following table summarizes stock option activity under the Company’s incentive plans:



	Number of Shares		Weighted Average Exercise Price Per Share		Weighted Average Remaining Contractual Life	Aggregate Intrinsic Value
	(in millions)				(in years)	(in millions)
Options outstanding at June 29, 2018	4.8		$	64.23
Exercised	(0.4	)	39.11			$	7
Canceled or expired	(0.3	)	80.18
Options outstanding at March 29, 2019	4.1		$	65.07	3.1	$	9
Exercisable at March 29, 2019	3.2		$	69.46	2.8	$	7

RSUs and PSUs

The following table summarizes RSU and PSU activity under the Company’s incentive plans:



	Number of Shares		Weighted Average Grant Date Fair Value		Aggregate Intrinsic Value at Vest Date
	(in millions)				(in millions)
RSUs and PSUs outstanding at June 29, 2018	12.6		$	58.31
Granted	6.9		56.01
Vested	(6.0	)	52.36		$	345
Forfeited	(1.1	)	56.68
RSUs and PSUs outstanding at March 29, 2019	12.4		$	62.63

RSUs and PSUs are generally settled in an equal number of shares of the Company’s common stock at the time of vesting of the units.

Stock Repurchase Program

The Company’s Board of Directors previously authorized $5.00 billion for the repurchase of the Company’s common stock. On July 25, 2018, the Company’s Board of Directors authorized a new $5.00 billion share repurchase program that is effective through July 25, 2023, replacing all prior programs. For the three months ended March 29, 2019, the Company did not make any stock repurchases. For the nine months ended March 29, 2019, the Company repurchased 0.8 million shares for a total cost of $61 million under the previous authorization and 7.6 million shares for a total cost of $502 million under the new authorization. Therefore, the Company’s stock repurchases under all stock repurchase authorizations in effect for the nine months ended March 29, 2019 totaled $563 million. The remaining amount available to be repurchased under the Company’s current stock repurchase program as of March 29, 2019 was $4.50 billion. Repurchases under the stock repurchase program may be made in the open market or in privately negotiated transactions and may be made under a Rule 10b5-1 plan. The Company expects stock repurchases to be funded principally by operating cash flows.

Dividends to Shareholders

Since the first quarter of 2013, the Company has issued a quarterly cash dividend. During the nine months ended March 29, 2019, the Company declared aggregate cash dividends of $1.50 per share on its outstanding common stock totaling $436 million, including $146 million that was paid on April 15, 2019.

On May 2, 2019, the Board declared a cash dividend of $0.50 per share to shareholders of record as of June 28, 2019, which will be paid on July 15, 2019. The Company may modify, suspend or cancel its cash dividend policy in any manner and at any time.