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Stockholders' Equity | 3 Months Ended
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Jul. 27, 2018
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] |
Stockholders' Equity | 10. Stockholders’ Equity Equity Incentive Awards As of July 27, 2018, we have certain equity incentive awards (awards) outstanding, which include stock options, restricted stock units (RSUs), including time-based RSUs and performance-based RSUs (PBRSUs), and Employee Stock Purchase Plan (ESPP) awards. Stock Options The following table summarizes information related to our stock options (in millions, except exercise price and contractual term):
|  | Number of Shares |  |  | Weighted- Average Exercise Price |  |  | Weighted- Average Remaining Contractual Term (Years) |  |  | Aggregate Intrinsic Value |
Outstanding as of April 27, 2018 |  |  | 1 |  |  | $ | 31.19 |  |  |  |  |  |  |  |  |
Outstanding as of July 27, 2018 |  |  | 1 |  |  | $ | 29.86 |  |  |  | 3.50 |  |  | $ | 40 |
Exercisable as of July 27, 2018 |  |  | 1 |  |  | $ | 32.23 |  |  |  | 3.05 |  |  | $ | 34 |
The aggregate intrinsic value represents the pre-tax difference between the exercise price of stock options and the quoted market price of our stock on that day for all in-the-money options. Additional information related to our stock options is summarized below (in millions):
|  | Three Months Ended |
|  | July 27, 2018 |  |  | July 28, 2017 |
Intrinsic value of exercises |  | $ | 15 |  |  | $ | 5 |
Proceeds received from exercises |  | $ | 13 |  |  | $ | 6 |
Fair value of options vested |  | $ | 1 |  |  | $ | 3 |
Restricted Stock Units In the three months ended July 27, 2018, we granted PBRSUs to certain of our executives. Each PBRSU has performance-based vesting criteria, in addition to the service based vesting criteria, such that the PBRSUs cliff-vest at the end of an approximate three year performance period, which began on the date specified in the grant agreements and ends the last day of fiscal 2021. The number of shares of common stock that will be issued to settle the PBRSUs at the end of the applicable performance and service period will range from 0% to 200% of a target number of shares originally granted. For half of the PBRSUs granted in the current quarter, the number of shares issued will depend upon our Total Stockholder Return (TSR) as compared to the TSR of a specified group of benchmark peer companies (each expressed as a growth rate percentage) calculated as of the end of fiscal 2021. The fair values of these awards were fixed at grant date using a Monte Carlo simulation model. For the remaining PBRSUs granted, the number of shares issued will depend upon our achievement against a cumulative Adjusted Operating Income (AOI) target, as defined in the grant agreements, for the three year period from fiscal 2019 through 2021. The fair values of these awards were established consistent with our methodology for valuing time-based RSUs, while compensation cost is being recognized based on the probable outcome of the performance condition. The aggregate compensation cost associated with all PBRSUs granted in the current quarter was $22 million, which is being recognized over the remaining applicable performance / service periods. The following table summarizes information related to our RSUs, including PBRSUs, (in millions, except fair value):
|  | Number of Shares |  |  | Weighted- Average Grant Date Fair Value |
Outstanding as of April 27, 2018 |  |  | 9 |  |  | $ | 32.91 |
Granted |  |  | 3 |  |  | $ | 62.42 |
Vested |  |  | (3 | ) |  | $ | 31.34 |
Forfeited |  |  | (1 | ) |  | $ | 31.62 |
Outstanding as of July 27, 2018 |  |  | 8 |  |  | $ | 43.43 |
We primarily use the net share settlement approach upon vesting, where a portion of the shares are withheld as settlement of employee withholding taxes, which decreases the shares issued to the employee by a corresponding value. The number and value of the shares netted for employee taxes are summarized in the table below (in millions):
|  | Three Months Ended |
|  | July 27, 2018 |  |  | July 28, 2017 |
Shares withheld for taxes |  |  | 1 |  |  |  | 1 |
Fair value of shares withheld |  | $ | 84 |  |  | $ | 57 |
Employee Stock Purchase Plan The following table summarizes activity related to the purchase rights issued under the ESPP (in millions):
|  | Three Months Ended |
|  | July 27, 2018 |  |  | July 28, 2017 |
Shares issued under the ESPP |  |  | 2 |  |  |  | 2 |
Proceeds from issuance of shares |  | $ | 49 |  |  | $ | 42 |
Stock-Based Compensation Expense Stock-based compensation expense is included in the condensed consolidated statements of operations as follows (in millions):
|  | Three Months Ended |
|  | July 27, 2018 |  |  | July 28, 2017 |
Cost of product revenues |  | $ | 1 |  |  | $ | 1 |
Cost of hardware maintenance and other services revenues |  |  | 3 |  |  |  | 3 |
Sales and marketing |  |  | 17 |  |  |  | 21 |
Research and development |  |  | 12 |  |  |  | 15 |
General and administrative |  |  | 7 |  |  |  | 8 |
Total stock-based compensation expense |  | $ | 40 |  |  | $ | 48 |
Income tax benefit for stock-based compensation expense |  | $ | 5 |  |  | $ | 9 |
As of July 27, 2018, total unrecognized compensation expense related to our equity awards was $362 million, which is expected to be recognized on a straight-line basis over a weighted-average remaining service period of 2.5 years. Stock Repurchase Program Our Board of Directors has authorized the repurchase of up to $13.6 billion of our common stock. Under this program, which we may suspend or discontinue at any time, we may purchase shares of our outstanding common stock through solicited or unsolicited transactions in the open market, in privately negotiated transactions, through accelerated share repurchase programs, pursuant to a Rule 10b5-1 plan or in such other manner as deemed appropriate by our management. The following table summarizes activity related to this program for the three months ended July 27, 2018 (in millions, except per share amounts):
Number of shares repurchased |  |  | 7 |
Average price per share |  | $ | 74.37 |
Aggregate purchase price |  | $ | 500 |
Remaining authorization at end of period |  | $ | 3,500 |
The aggregate purchase price of our stock repurchases for the three months ended July 27, 2018 consisted of $500 million of open market purchases, of which $277 million and $223 million were allocated to additional paid-in capital and retained earnings (accumulated deficit), respectively. Since the May 13, 2003 inception of our stock repurchase program through July 27, 2018, we repurchased a total of 291 million shares of our common stock at an average price of $34.79 per share, for an aggregate purchase price of $10.1 billion. Dividends The following is a summary of our activities related to dividends on our common stock (in millions, except per share amounts):
|  | Three Months Ended |
|  | July 27, 2018 |  |  | July 28, 2017 |
Dividends per share declared |  | $ | 0.40 |  |  | $ | 0.20 |
Dividend payments allocated to additional paid-in capital |  | $ | 105 |  |  | $ | — |
Dividend payments allocated to retained earnings (accumulated deficit) |  | $ | — |  |  | $ | 54 |
On August 15, 2018, we declared a cash dividend of $0.40 per share of common stock, payable on October 24, 2018 to holders of record as of the close of business on October 5, 2018. The timing and amount of future dividends will depend on market conditions, corporate business and financial considerations and regulatory requirements. All dividends declared have been determined by us to be legally authorized under the laws of the state in which we are incorporated. Retained Earnings (Accumulated Deficit) A reconciliation of retained earnings (accumulated deficit) is as follows (in millions):
Balance as of April 27, 2018 |  | $ | (9 | )
Cumulative-effect of new accounting principle |  |  | (51 | )
Net income |  |  | 283 |
Repurchases of common stock |  |  | (223 | )
Balance as of July 27, 2018 |  | $ | — |
In the three months ended July 27, 2018, we adopted an ASU that eliminates the deferred tax effects of intra-entity asset transfers other than inventory and recorded the cumulative-effect of adoption to retained earnings (accumulated deficit). Refer to Note 1 – Description of Business and Significant Accounting Policies for details.

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- Definition The entire disclosure for accounts comprising shareholders' equity, comprised of portions attributable to the parent entity and noncontrolling interest, including other comprehensive income, and compensation-related costs for equity-based compensation. Includes, but is not limited to, disclosure of policies, compensation plan details, equity-based arrangements to obtain goods and services, deferred compensation arrangements, and employee stock purchase plan details. + 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
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