Stock Based Compensation (Tables)

3 Months Ended

Apr. 26, 2015

Employee Service Share-based Compensation, Aggregate Disclosures [Abstract]

Stock-based compensation expense, net of amounts capitalized as inventory



	Three Months Ended
	April 26, 2015		April 27, 2014
	(In millions)
Cost of revenue	$	2	$	3
Research and development	27		21
Sales, general and administrative	16		12
Total	$	45	$	36

Disclosure of Share-based Compensation Arrangements by Share-based Payment Award



	Awards Outstanding		Weighted Average Exercise Price
Stock Options	(In millions)		(Per share)
Balances, January 25, 2015	21		$14.61
Granted	—		—
Exercised	(3	)	$13.87
Cancelled	—		—
Balances, April 26, 2015	18		$14.63



	Awards Outstanding		Weighted Average Grant-Date Fair Value
RSUs, PSUs and Market-based PSUs	(In millions)		(Per share)
Balances, January 25, 2015	23		$15.94
Granted (1) (2)	4		$22.08
Vested	(4	)	$14.99
Cancelled	—		—
Balances, April 26, 2015	23		$17.01

(1)

Includes the total PSUs issuable if the corporate financial performance maximum target level for fiscal year 2016 is achieved. Depending on the actual level of achievement of the corporate performance target at the end of fiscal year 2016, the PSUs issued could range from 0 to 2 million shares. We granted PSUs during the first quarter of fiscal year 2016 to our CEO and senior management as approved by our Compensation Committee.

(2)

Includes the market-based PSUs issuable if the maximum target for total shareholder return, or TSR, over the 3-year measurement period is achieved. Depending on the ranking of our TSR compared to the respective TSRs of the companies comprising the Standard & Poor’s 500 Index during a 3-year measurement period, the market-based PSUs issued could range from 0 to 0.4 million shares. We granted market-based PSUs during the first quarter of fiscal year 2016 to our CEO and senior management as approved by our Compensation Committee.

Summary of unearned stock-based compensation expense



	April 26,	January 25,
	2015	2015
	(In millions)
Aggregated unearned stock-based compensation expense	$331	$291

Estimated weighted average amortization period	(In years)
Stock options	1.7	1.8
RSUs, PSUs and market-based PSUs	2.9	2.8
ESPP	0.7	0.5

- Definition

Tabular disclosure of components of a stock option or other award plan under which equity-based compensation is awarded to employees, typically comprised of the amount of unearned compensation (deferred compensation cost), compensation expense, and changes in the quantity and fair value of the shares (or other type of equity) granted, exercised, forfeited, and issued and outstanding pertaining to that plan. Disclosure may also include nature and general terms of such arrangements that existed during the period and potential effects of those arrangements on shareholders, effect of compensation cost arising from equity-based payment arrangements on the income statement, method of estimating the fair value of the goods or services received, or the fair value of the equity instruments granted, during the period, cash flow effects resulting from equity-based payment arrangements and, for registrants that accelerate vesting of out of the money share options, reasons for the decision to accelerate.

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