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Shareholders' Equity (Tables)

12 Months Ended

Jul. 03, 2020

Share-based Payment Arrangement [Abstract]

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

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 Consolidated Statements of Operations:



	2020		2019		2018
	(in millions)
Options	$	7	$	16	$	25
RSUs and PSUs	268		263		325
Employee stock purchase plan	33		27		27
Total	$	308	$	306	$	377



	2020		2019		2018
	(in millions)
Cost of revenue	$	51	$	48	$	49
Research and development	163		155		170
Selling, general and administrative	94		103		157
Employee termination, asset impairment, and other charges	—		—		1
Subtotal	308		306		377
Tax benefit	(45)		(50)		(66)
Total	$	263	$	256	$	311

Employee Service Share-based Compensation , Unrecognized Costs

The following table presents the unamortized compensation cost and weighted average service period of all unvested outstanding awards as of July 3, 2020:


	Unamortized Compensation Costs		Weighted Average Service Period
	(in millions)		(years)

RSUs and PSUs ⁽¹⁾	543		2.4
ESPP	38		1.1
Total unamortized compensation cost	$	581

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

Stock Option Activity

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 30, 2017	7.4	$	58.14


Exercised	(2.2)	44.52			$	99
Canceled or expired	(0.4)	60.85
Options outstanding at June 29, 2018	4.8	64.23


Exercised	(0.4)	39.58			$	8
Canceled or expired	(0.5)	74.79
Options outstanding at June 28, 2019	3.9	65.72


Exercised	(0.8)	43.26			$	12
Canceled or expired	(0.4)	88.58
Options outstanding at July 3, 2020	2.7	$	69.16	2.1	$	—
Exercisable at July 3, 2020	2.6	$	70.10	2.1	$	—

Restricted Stock Unit

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 30, 2017	13.7	$	45.01
Granted	6.3	74.68

Vested	(6.3)	45.20		$	552
Forfeited	(1.1)	50.35
RSUs and PSUs outstanding at June 29, 2018	12.6	58.31
Granted	7.3	54.82

Vested	(6.3)	53.21		$	360
Forfeited	(2.0)	58.63
RSUs and PSUs outstanding at June 28, 2019	11.6	62.07
Granted	7.4	55.32

Vested	(4.4)	58.36		$	252
Forfeited	(1.3)	63.33
RSUs and PSUs outstanding at July 3, 2020	13.3	$	60.92

Schedule of Share-based Payment Award, Employee Stock Purchase Plan, Valuation Assumptions

The fair values of ESPP purchase rights have been estimated at the date of grant using a Black-Scholes-Merton option-pricing model with the following weighted average assumptions:



	2020	2019	2018
Weighted-average expected term (in years)	1.25	1.24	1.26
Risk-free interest rate	0.55%	2.25%	0.81%
Stock price volatility	0.59	0.35	0.42
Dividend yield	1.08%	2.42%	4.02%
Fair value	$12.76	$16.89	$10.06

Shares of Common Stock Reserved for Issuance Table

The following table summarizes all common stock reserved for issuance at July 3, 2020:


			Number of Shares
			(in millions)
Outstanding awards and shares available for award grants			31
ESPP			9

Total			40