XML 33 R18.htm IDEA: XBRL DOCUMENT
v3.19.3.a.u2

Shareholders' Equity | 6 Months Ended
--- | ---
Jan. 03, 2020
Share-based Payment Arrangement [Abstract] |
Shareholders' Equity | 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 |  | Six Months Ended
| January 3, 2020 |  | December 28, 2018 |  | January 3, 2020 |  | December 28, 2018
| (in millions)
Options | $ | 2 |  |  | $ | 4 |  |  | $ | 4 |  |  | $ | 9 |
Restricted and performance stock units | 70 |  |  | 70 |  |  | 136 |  |  | 137 |
Employee stock purchase plan | 5 |  |  | 5 |  |  | 14 |  |  | 12 |
Total | $ | 77 |  |  | $ | 79 |  |  | $ | 154 |  |  | $ | 158 |
| Three Months Ended |  | Six Months Ended
| January 3, 2020 |  | December 28, 2018 |  | January 3, 2020 |  | December 28, 2018
| (in millions)
Cost of revenue | $ | 13 |  |  | $ | 13 |  |  | $ | 25 |  |  | $ | 24 |
Research and development | 41 |  |  | 42 |  |  | 82 |  |  | 81 |
Selling, general and administrative | 23 |  |  | 24 |  |  | 47 |  |  | 53 |
Subtotal | 77 |  |  | 79 |  |  | 154 |  |  | 158 |
Tax benefit | (11 | ) |  | (14 | ) |  | (23 | ) |  | (25 | )
Total | $ | 66 |  |  | $ | 65 |  |  | $ | 131 |  |  | $ | 133 |
Windfall tax benefits related to the vesting and exercise of stock-based awards, which are recognized as a component of the Company’s Income tax expense, were immaterial for the periods presented. Compensation cost related to unvested stock options, restricted stock units (“RSUs”), performance-based stock units (“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 January 3, 2020:
| Unamortized Compensation Costs |  | Weighted Average Service Period
| (in millions) |  | (years)
Options | $ | 3 |  |  | 0.6
RSUs and PSUs (1) | 640 |  |  | 2.7
ESPP | 50 |  |  | 1.4
Total unamortized compensation cost | $ | 693 |  |  |
(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 28, 2019 | 3.9 |  |  | $ | 65.72 |  |  |  |  |
Exercised | (0.6 | ) |  | 43.48 |  |  |  |  | $ | 8 |
Canceled or expired | (0.3 | ) |  | 93.23 |  |  |  |  |
Options outstanding at January 3, 2020 | 3.0 |  |  | 67.85 |  |  | 2.6 |  | $ | 28 |
Exercisable at January 3, 2020 | 2.7 |  |  | 70.60 |  |  | 2.5 |  | $ | 22 |
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 28, 2019 | 11.6 |  |  | $ | 62.07 |  |  |
Granted | 5.8 |  |  | 58.13 |  |  |
Vested | (3.3 | ) |  | 63.15 |  |  | $ | 186 |
Forfeited | (0.8 | ) |  | 63.37 |  |  |
RSUs and PSUs outstanding at January 3, 2020 | 13.3 |  |  | 60.88 |  |  |
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 has authorized a stock repurchase program for the repurchase of up to $5.00 billion of the Company’s common stock, which authorization is effective through July 25, 2023. For the six months ended January 3, 2020, the Company did not make any stock repurchases. The remaining amount available to be repurchased under the Company’s current stock repurchase program as of January 3, 2020 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 six months ended January 3, 2020, the Company declared aggregate cash dividends of $1.00 per share on its outstanding common stock totaling $298 million, of which $149 million was paid on January 21, 2020. The Company may modify, suspend or cancel its cash dividend policy in any manner and at any time.

X
- References No definition available. + Details
Name: | us-gaap_DisclosureOfCompensationRelatedCostsSharebasedPaymentsAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition The entire disclosure for shareholders' equity and share-based payment arrangement. Includes, but is not limited to, disclosure of policy and terms of share-based payment arrangement, deferred compensation arrangement, and employee stock purchase plan (ESPP). + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 505 -URI http://asc.fasb.org/topic&trid=2208762 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 718 -URI http://asc.fasb.org/topic&trid=2228938 + Details
Name: | us-gaap_ShareholdersEquityAndShareBasedPaymentsTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration