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Shareholders' Equity
 6 Months Ended
Jan. 03, 2020
Share-based Payment Arrangement [Abstract]  
Shareholders' Equity
Shareholders’ Equity

Stock-based Compensation Expense

The following tables present the Company’s stock-based compensation for equity-settled awards by type and financial statement line as well as the related tax benefit included in the Company’s Condensed Consolidated Statements of Operations:
 
Three Months Ended
 
Six Months Ended
 
January 3,
2020
 
December 28,
2018
 
January 3,
2020
 
December 28, 2018
 
(in millions)
Options
$
2

 
$
4

 
$
4

 
$
9

Restricted and performance stock units
70

 
70

 
136

 
137

Employee stock purchase plan
5

 
5

 
14

 
12

Total
$
77

 
$
79

 
$
154

 
$
158


 
Three Months Ended
 
Six Months Ended
 
January 3,
2020
 
December 28,
2018
 
January 3,
2020
 
December 28, 2018
 
(in millions)
Cost of revenue
$
13

 
$
13

 
$
25

 
$
24

Research and development
41

 
42

 
82

 
81

Selling, general and administrative
23

 
24

 
47

 
53

Subtotal
77

 
79

 
154

 
158

Tax benefit
(11
)
 
(14
)
 
(23
)
 
(25
)
Total
$
66

 
$
65

 
$
131

 
$
133



Windfall tax benefits related to the vesting and exercise of stock-based awards, which are recognized as a component of the Company’s Income tax expense, were immaterial for the periods presented.

Compensation cost related to unvested stock options, restricted stock units (“RSUs”), performance-based stock units (“PSUs”), and rights to purchase shares of common stock under the Company’s Employee Stock Purchase Plan (“ESPP”) will generally be amortized on a straight-line basis over the remaining average service period. The following table presents the unamortized compensation cost and weighted average service period of all unvested outstanding awards as of January 3, 2020:
 
Unamortized Compensation Costs
 
Weighted Average Service Period
 
(in millions)
 
(years)
Options
$
3

 
0.6
RSUs and PSUs (1)
640

 
2.7
ESPP
50

 
1.4
Total unamortized compensation cost
$
693

 
 
(1) 
Weighted average service period assumes the performance metrics are met for the PSUs.

Plan Activities

Stock Options

The following table summarizes stock option activity under the Company’s incentive plans:
 
Number of Shares
 
Weighted Average Exercise Price Per Share
 
Weighted Average Remaining Contractual Life
 
Aggregate Intrinsic Value
 
(in millions)
 
 
 
(in years)
 
(in millions)
Options outstanding at June 28, 2019
3.9

 
$
65.72

 
 
 
 
Exercised
(0.6
)
 
43.48

 
 
 
$
8

Canceled or expired
(0.3
)
 
93.23

 
 
 
 
Options outstanding at January 3, 2020
3.0

 
67.85

 
2.6
 
$
28

Exercisable at January 3, 2020
2.7

 
70.60

 
2.5
 
$
22



RSUs and PSUs

The following table summarizes RSU and PSU activity under the Company’s incentive plans:
 
Number of Shares
 
Weighted Average Grant Date Fair Value
 
Aggregate Intrinsic Value at Vest Date
 
(in millions)
 
 
 
(in millions)
RSUs and PSUs outstanding at June 28, 2019
11.6

 
$
62.07

 
 
Granted
5.8

 
58.13

 
 
Vested
(3.3
)
 
63.15

 
$
186

Forfeited
(0.8
)
 
63.37

 
 
RSUs and PSUs outstanding at January 3, 2020
13.3

 
60.88

 
 


RSUs and PSUs are generally settled in an equal number of shares of the Company’s common stock at the time of vesting of the units.

Stock Repurchase Program

The Company’s Board of Directors has authorized a stock repurchase program for the repurchase of up to $5.00 billion of the Company’s common stock, which authorization is effective through July 25, 2023. For the six months ended January 3, 2020, the Company did not make any stock repurchases. The remaining amount available to be repurchased under the Company’s current stock repurchase program as of January 3, 2020 was $4.50 billion. Repurchases under the stock repurchase program may be made in the open market or in privately negotiated transactions and may be made under a Rule 10b5-1 plan. The Company expects stock repurchases to be funded principally by operating cash flows.

Dividends to Shareholders

Since the first quarter of 2013, the Company has issued a quarterly cash dividend. During the six months ended January 3, 2020, the Company declared aggregate cash dividends of $1.00 per share on its outstanding common stock totaling $298 million, of which $149 million was paid on January 21, 2020. The Company may modify, suspend or cancel its cash dividend policy in any manner and at any time.