We granted approximately 5 million restricted stock units (RSUs), including performance-based RSUs (PBRSUs), with a weighted average grant date fair value of $75.14 per share during the six months ended October 27, 2023.

In the first quarter of fiscal 2024, due to an insufficient number of remaining shares available for issuance under the 2021 Equity Incentive Plan (the 2021 Plan), most of the awards granted in that period were subject to cash settlement upon vesting, and accounted for as liability awards. However, in the second quarter of fiscal 2024, stockholders approved an increase in the number of shares available for issuance under the 2021 Plan, and these awards, by their terms, automatically became share-settled, equity-classified

awards. The modification resulted in the elimination of the $4 million liability related to these awards, with a corresponding increase to additional paid-in capital, as presented on the Statements of Stockholders' Equity.

In the six months ended October 27, 2023, 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 a three year performance period, which began on the date specified in the grant agreements and typically ends on the last day of the third fiscal year, following the grant date. The number of shares that will be used to calculate the settlement amount for all 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 six months ended October 27, 2023, the number of shares used to calculate the settlement amount 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. For the remaining half of the PBRSUs granted in the six months ended October 27, 2023, the number of shares used to calculate the settlement amount 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 fluctuations in foreign currency exchange rates. The aggregate grant date fair value of PBRSUs effectively granted in the current year was $39 million, which is being recognized to compensation expense over the remaining performance / service periods.

Stock-based compensation expense is included in the condensed consolidated statements of income as follows (in millions):


	Three Months Ended				Six Months Ended
	October 27, 2023		October 28, 2022		October 27, 2023		October 28, 2022
Cost of product revenues	$	1	$	1	$	2	$	2
Cost of services revenues		6		4		12		8
Sales and marketing		37		35		73		63
Research and development		35		26		67		50
General and administrative		14		12		26		22
Total stock-based compensation expense	$	93	$	78	$	180	$	145

As of October 27, 2023, total unrecognized compensation expense related to equity awards was $751 million, which is expected to be recognized on a straight-line basis over a weighted-average remaining service period of 2.3 years.

As of October 27, 2023, our Board of Directors has authorized the repurchase of up to $16.1 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 six months ended October 27, 2023 (in millions, except for per share amounts):


Number of shares repurchased		9
Average price per share	$	75.12
Stock repurchases allocated to additional paid-in capital	$	91
Stock repurchases allocated to retained earnings	$	609
Remaining authorization at end of period	$	702

Since the May 13, 2003 inception of our stock repurchase program through October 27, 2023, we repurchased a total of 369 million shares of our common stock at an average price of $41.75 per share, for an aggregate purchase price of $15.4 billion.

The following is a summary of our activities related to dividends on our common stock (in millions, except per share amounts):


	Six Months Ended
	October 27, 2023		October 28, 2022
Dividends per share declared	$	1.00	$	1.00
Dividend payments allocated to additional paid-in capital	$	171	$	106
Dividend payments allocated to retained earnings	$	38	$	112

On November 21, 2023, we declared a cash dividend of $0.50 per share of common stock, payable on January 24, 2024 to holders of record as of the close of business on January 5, 2024. 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.

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 28, 2023	$	(48	)	$	(3	)	$	—		$	(51	)
Other comprehensive income (loss), net of tax		(5	)		—			5			—
Amounts reclassified from AOCI, net of tax		—			—			(4	)		(4	)
Total other comprehensive income (loss)		(5	)		—			1			(4	)
Balance as of October 27, 2023	$	(53	)	$	(3	)	$	1		$	(55	)

The amounts reclassified out of AOCI are as follows (in millions):


	Three Months Ended						Six Months Ended
	October 27, 2023			October 28, 2022			October 27, 2023			October 28, 2022			Statements of Income Classification
Realized gains on cash flow hedges	$	(3	)	$	(3	)	$	(4	)	$	(4	)	Net revenues
Total reclassifications	$	(3	)	$	(3	)	$	(4	)	$	(4	)