XML 30 R18.htm IDEA: XBRL DOCUMENT
v3.20.2

Stockholders' Equity | 3 Months Ended
--- | ---
Jul. 31, 2020
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] |
Stockholders' Equity | 10. Stockholders’ Equity Equity Incentive Awards As of July 31, 2020, we have certain equity incentive awards (awards) outstanding, which include stock options and restricted stock units (RSUs), including time-based RSUs and performance-based RSUs (PBRSUs). Also outstanding are purchase rights under our Employee Stock Purchase Plan (ESPP). Stock Options Less than 1 million options were outstanding as of July 31, 2020 and April 24, 2020. Restricted Stock Units In the three months ended July 31, 2020, we granted PBRSUs to certain of our executives. The PBRSUs have 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 on the last day of the third fiscal year following the grant date. The number of shares of common stock that will be issued to settle the PBRSUs at the end of the performance and service period, will range from 0% to 200% of a target number of shares originally granted. 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 the performance period. The fair values of these awards were fixed at grant date using a Monte Carlo simulation model. The aggregate grant date fair value of all PBRSUs granted in the current year was $20 million, which is being recognized to compensation expense over the remaining 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 24, 2020 |  |  | 7 |  |  | $ | 51.40 |
Granted |  |  | 4 |  |  | $ | 39.95 |
Vested |  |  | (2 | ) |  | $ | 43.77 |
Outstanding as of July 31, 2020 |  |  | 9 |  |  | $ | 47.75 |
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 31, 2020 |  |  | July 26, 2019 |
Shares withheld for taxes |  |  | 1 |  |  |  | 1 |
Fair value of shares withheld |  | $ | 33 |  |  | $ | 71 |
Employee Stock Purchase Plan The following table summarizes activity related to the purchase rights issued under the ESPP (in millions):
|  | Three Months Ended |
|  | July 31, 2020 |  |  | July 26, 2019 |
Shares issued under the ESPP |  |  | 1 |  |  |  | 1 |
Proceeds from issuance of shares |  | $ | 48 |  |  | $ | 54 |
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 31, 2020 |  |  | July 26, 2019 |
Cost of product revenues |  | $ | 1 |  |  | $ | 1 |
Cost of hardware maintenance and other services revenues |  |  | 3 |  |  |  | 2 |
Sales and marketing |  |  | 25 |  |  |  | 18 |
Research and development |  |  | 19 |  |  |  | 15 |
General and administrative |  |  | 6 |  |  |  | 6 |
Total stock-based compensation expense |  | $ | 54 |  |  | $ | 42 |
Income tax benefit for stock-based compensation expense |  | $ | 4 |  |  | $ | 4 |
As of July 31, 2020, total unrecognized compensation expense related to our equity awards was $435 million, which is expected to be recognized on a straight-line basis over a weighted-average remaining service period of 2.7 years. Stock Repurchase Program As of July 31, 2020, our Board of Directors has authorized the repurchase of up to $13.6 billion of our common stock. Under this program, 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 stock repurchase program may be suspended or discontinued at any time, and it was suspended in March 2020 due to the economic impact of the COVID-19 pandemic. Accordingly, no share repurchases were executed in the three months ended July 31, 2020. Since the May 13, 2003 inception of our stock repurchase program through July 31, 2020, we repurchased a total of 338 million shares of our common stock at an average price of $38.86 per share, for an aggregate purchase price of $13.1 billion. As of July 31, 2020, the remaining authorized amount for stock repurchases under this program was $477 million. 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 31, 2020 |  |  | July 26, 2019 |
Dividends per share declared |  | $ | 0.48 |  |  | $ | 0.48 |
Dividend payments allocated to additional paid-in capital |  | $ | 30 |  |  | $ | 115 |
Dividend payments allocated to retained earnings |  | $ | 77 |  |  | $ | — |
On August 24, 2020, we declared a cash dividend of $0.48 per share of common stock, payable on October 28, 2020 to holders of record as of the close of business on October 9, 2020. 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. Accumulated Other Comprehensive Income (Loss) Changes in accumulated other comprehensive income (loss) (AOCI) by component, net of tax, are summarized below (in millions):
|  | Foreign Currency Translation Adjustments |  |  | Defined Benefit Obligation Adjustments |  |  | Unrealized Gains (Losses) on Available- for-Sale Securities |  |  | Unrealized Gains (Losses) on Derivative Instruments |  |  | Total |
Balance as of April 24, 2020 |  | $ | (42 | ) |  | $ | (1 | ) |  | $ | 1 |  |  | $ | — |  |  | $ | (42 | )
Other comprehensive income (loss), net of tax |  |  | 9 |  |  |  | — |  |  |  | 2 |  |  |  | (9 | ) |  |  | 2 |
Amounts reclassified from AOCI, net of tax |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 1 |  |  |  | 1 |
Total other comprehensive income (loss) |  |  | 9 |  |  |  | — |  |  |  | 2 |  |  |  | (8 | ) |  |  | 3 |
Balance as of July 31, 2020 |  | $ | (33 | ) |  | $ | (1 | ) |  | $ | 3 |  |  | $ | (8 | ) |  | $ | (39 | )
The amounts reclassified out of AOCI are as follows (in millions):
|  | Three Months Ended |  |
|  | July 31, 2020 |  |  | July 26, 2019 |  |
|  | Amounts Reclassified from AOCI |  | Statements of Operations Classification
Realized gains on available-for-sale securities |  |  | — |  |  |  | (14 | ) | Other income (expense), net
Realized losses on cash flow hedges |  |  | 1 |  |  |  | — |  | Net revenues
Total reclassifications |  | $ | 1 |  |  | $ | (14 | ) |

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