Stock-Based Compensation

9 Months Ended

Dec. 31, 2021

Share-based Payment Arrangement [Abstract]

The following table sets forth the stock-based compensation expense recognized for our equity incentive plans:


	Three Months Ended				Nine Months Ended
(In millions)	December 31, 2021		January 1, 2021		December 31, 2021		January 1, 2021
Cost of revenues	$	—	$	—	$	1	$	1
Sales and marketing	5		5		13		14
Research and development	5		8		14		21
General and administrative	8		7		23		21
Restructuring and other costs	—		1		—		9
Other income (expense), net	—		—		—		(1)
Total stock-based compensation from continuing operations	18		21		51		65
Discontinued operations	—		—		—		1
Total stock-based compensation expense	$	18	$	21	$	51	$	66
Income tax benefit for stock-based compensation expense	$	(4)	$	(5)	$	(11)	$	(15)

As of December 31, 2021, the total unrecognized stock-based compensation costs related to our unvested stock-based awards was $173 million, which will be recognized over an estimated weighted-average amortization period of 2.25 years.

The following table summarizes additional information related to our stock-based awards, including awards associated with our discontinued operations:


	Nine Months Ended
(In millions, except per grant data)	December 31, 2021			January 1, 2021
Restricted stock units (RSUs):
Weighted-average fair value per award granted	$	22.48		$	20.65
Awards granted	4			3
Total fair value of awards released	$	54		$	85
Outstanding and unvested	6			5
Performance-based restricted stock units (PRUs):
Weighted-average fair value per award granted	$	26.01		$	26.53
Awards granted	3			2
Total fair value of awards released	$	—		$	43
Outstanding and unvested at target payout	3			1
Stock options:


Total intrinsic value of stock options exercised	$	2		$	15
Outstanding	—		(1)	1
Exercisable	—		(1)	1

(1) The number of shares was less than 1 million.

Dividend equivalent rights (DERs)

Our RSUs and PRUs contain DERs that entitles the recipient of an award to receive cash dividend payments if and when the underlying shares are released. The amount of DERs equals the amount of cumulated dividends on the issued number of common stock that would have been payable since the date the associated award was granted. As of December 31, 2021 and April 2, 2021, current dividends payable related to DER was $9 million and $12 million, respectively, recorded as part of Other current liabilities in the Condensed Consolidated Balance Sheets, and long-term dividends payable related to DER was $2 million and $10 million, respectively, recorded as part of Other long-term liabilities.

Stock-based award modifications

In connection with the Broadcom sale, during the first quarter of fiscal 2021, we entered into severance and retention arrangements with certain executives. Pursuant to these agreements, these executives were entitled to receive vesting of 50% of their unvested equity, subject to a service condition, and the remaining unvested equity was earned at levels of 0% to 150%, subject to market and service conditions. In addition, we entered into severance and retention arrangements with certain other employees in connection with restructuring activities and the Broadcom sale, which accelerated either a portion or all of the vesting of their stock-based awards. All award modifications related to the Broadcom sale were fully expensed in fiscal 2021.

The following table summarizes the stock-based compensation expense recognized as a result of these modifications during the three and nine months ended January 1, 2021:


	Three Months Ended		Nine Months Ended
(In millions)	January 1, 2021		January 1, 2021
Sales and marketing	$	—	$	2
Research and development	4		9
General and administrative	2		8
Restructuring and other costs	1		9

Total stock-based compensation	$	7	$	28