Stock-Based Compensation (Tables)

12 Months Ended

Jan. 27, 2019

Disclosure of Compensation Related Costs, Share-based Payments [Abstract]

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

Our Consolidated Statements of Income include stock-based compensation expense, net of amounts allocated to inventory, as follows:

	Year Ended
	January 27, 2019		January 28, 2018		January 29, 2017
	(In millions)
Cost of revenue	$	27	$	21	$	15
Research and development	336		219		134
Sales, general and administrative	194		151		98
Total	$	557	$	391	$	247

Summary of equity awards

The following is a summary of equity awards granted under our equity incentive plans:

	Year Ended
	January 27, 2019		January 28, 2018		January 29, 2017
	(In millions, except per share data)
RSUs, PSUs and Market-based PSUs
Awards granted	4		6		12
Estimated total grant-date fair value	$	1,109	$	929	$	591
Weighted average grant-date fair value (per share)	$	258.26	$	145.91	$	50.57
ESPP
Shares purchased	1		5		4
Weighted average price (per share)	$	107.48	$	21.24	$	18.51
Weighted average grant-date fair value (per share)	$	38.51	$	7.12	$	5.80

Summary of unearned stock-based compensation expense

	January 27, 2019		January 28, 2018
	(In millions)
Aggregate unearned stock-based compensation expense	$	1,580	$	1,091
Estimated weighted average remaining amortization period	(In years)
RSUs, PSUs and market-based PSUs	2.2		2.3
ESPP	0.8		0.7

Summary of ESPP valuation assumptions

The fair value of shares issued under our ESPP have been estimated with the following assumptions:

	Year Ended
	January 27, 2019	January 28, 2018	January 29, 2017
	(Using the Black-Scholes model)
ESPP
Weighted average expected life (in years)	0.1-2.0	0.5-2.0	0.5-2.0
Risk-free interest rate	1.6%-2.8%	0.8%-1.4%	0.5%-0.9%
Volatility	24%-75%	40%-54%	30%-39%
Dividend yield	0.3%-0.4%	0.3%-0.5%	0.7%-1.4%

Schedule of equity award transactions

The following is a summary of our equity award transactions under our equity incentive plans: 

	RSUs, PSUs and Market-based PSUs Outstanding
	Number of Shares		Weighted Average Grant-Date Fair Value
	(In millions, except years and per share data)
Balances, January 28, 2018	22		$	66.72
Granted (1)(2)	4		$	258.26
Vested restricted stock	(10	)	$	52.56
Canceled and forfeited	—		$	—
Balances, January 27, 2019	16		$	129.92
Vested and expected to vest after January 27, 2019	13		$	129.44

(1) Includes PSUs that will be issued and eligible to vest based on the corporate financial performance level achieved for fiscal year 2019.

(2) Includes market-based PSUs that will be issued and eligible to vest 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 that period, the market-based PSUs issued could be up to 45 thousand shares.