XML 27 R17.htm IDEA: XBRL DOCUMENT
v3.22.2.2

Stockholders' Equity | 3 Months Ended
--- | ---
Jul. 29, 2022
Share-Based Payment Arrangement [Abstract] |
Stockholders' Equity | 9. Stockholders’ Equity Restricted Stock Units We granted approximately 5 million restricted stock units (RSUs) with a weighted average grant date fair value of $58.42 per share, including performance-based RSUs (PBRSUs), during the three months ended July 29, 2022. In the three months ended July 29, 2022, 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 one, two or three year performance period, which began on the date specified in the grant agreements and typically ends on the last day of the first, second or third fiscal year, respectively, following the grant date. The number of shares of common stock that will be issued to settle most of these 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 three months ended July 29, 2022, 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 TSR performance-based awards were fixed at grant date using a Monte Carlo simulation model. For the remaining half of the PBRSUs granted in the three months ended July 29, 2022, the number of shares issued will depend upon the Company's billings result average over the three-year performance period as compared to a predetermined billings target. Billings for purposes of measuring the performance of these PBRSUs means the total obtained by adding net revenues as reported on the Company's Consolidated Statements of Income to the amount reported as the change in deferred revenue and financed unearned services revenue on the Consolidated Statements of Cash Flows for the applicable measurement period, excluding the impact of f luctuations in foreign currency exchange rates. The fair values of these billings PBRSUs 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 grant date fair value of PBRSUs effectively granted in the current year was $27 million, which is being recognized to compensation expense over the remaining performance / service periods. Stock-Based Compensation Expense Stock-based compensation expense is included in the condensed consolidated statements of income as follows (in millions):
|  | Three Months Ended |
|  | July 29, 2022 |  |  | July 30, 2021 |
Cost of product revenues |  | $ | 1 |  |  | $ | 1 |
Cost of services revenues |  |  | 4 |  |  |  | 2 |
Sales and marketing |  |  | 28 |  |  |  | 26 |
Research and development |  |  | 24 |  |  |  | 16 |
General and administrative |  |  | 10 |  |  |  | 8 |
Total stock-based compensation expense |  | $ | 67 |  |  | $ | 53 |
As of July 29, 2022, total unrecognized compensation expense related to our equity awards was $746 million, which is expected to be recognized on a straight-line basis over a weighted-average remaining service period of 2.6 years. Stock Repurchase Program As of July 29, 2022, our Board of Directors has authorized the repurchase of up to $15.1 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. The following table summarizes activity related to the stock repurchase program for the three months ended July 29, 2022 (in millions, except for per share amounts):
Number of shares repurchased |  |  | 5 |
Average price per share |  | $ | 67.26 |
Stock repurchases allocated to additional paid-in capital |  | $ | 18 |
Stock repurchases allocated to retained earnings |  | $ | 332 |
Remaining authorization at end of period |  | $ | 902 |
Since the May 13, 2003 inception of our stock repurchase program through July 29, 2022, we repurchased a total of 352 million shares of our common stock at an average price of $40.35 per share, for an aggregate purchase price of $14.2 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 29, 2022 |  |  | July 30, 2021 |
Dividends per share declared |  | $ | 0.50 |  |  | $ | 0.50 |
Dividend payments allocated to additional paid-in capital |  | $ | 106 |  |  | $ | — |
Dividend payments allocated to retained earnings |  | $ | 4 |  |  | $ | 112 |
On August 22, 2022, we declared a cash dividend of $0.50 per share of common stock, payable on October 26, 2022 to holders of record as of the close of business on October 7, 2022. 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 Derivative Instruments |  |  | Total |
Balance as of April 29, 2022 |  | $ | (44 | ) |  | $ | (1 | ) |  | $ | 1 |  |  | $ | (44 | )
Other comprehensive income (loss), net of tax |  |  | (3 | ) |  |  | — |  |  |  | — |  |  |  | (3 | )
Amounts reclassified from AOCI, net of tax |  |  | — |  |  |  | — |  |  |  | (1 | ) |  |  | (1 | )
Total other comprehensive income (loss) |  |  | (3 | ) |  |  | — |  |  |  | (1 | ) |  |  | (4 | )
Balance as of July 29, 2022 |  | $ | (47 | ) |  | $ | (1 | ) |  | $ | — |  |  | $ | (48 | )
The amounts reclassified out of AOCI are as follows (in millions):
|  | Three Months Ended |  |  |
|  | July 29, 2022 |  |  | July 30, 2021 |  |  | Statements of Income Classification
Realized gains on cash flow hedges |  | $ | (1 | ) |  | $ | — |  |  | Net revenues
Total reclassifications |  | $ | (1 | ) |  | $ | — |  |  |

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 https://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 https://asc.fasb.org/topic&trid=2228938 + Details
Name: | us-gaap_ShareholdersEquityAndShareBasedPaymentsTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration