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Stockholders' Equity
 6 Months Ended
Jul. 31, 2020
Stockholders' Equity Note [Abstract]  
Stockholders' Equity Stockholders’ Equity
VMware Stock Repurchases
VMware purchases stock from time to time in open market transactions, subject to market conditions. The timing of any repurchases and the actual number of shares repurchased will depend on a variety of factors, including VMware’s stock price, cash requirements for operations and business combinations, corporate, legal and regulatory requirements and other market and economic conditions. VMware is not obligated to purchase any shares under its stock repurchase programs. Purchases may be discontinued at any time VMware believes additional purchases are not warranted. From time to time, VMware also purchases stock in private transactions, such as those with Dell. All shares repurchased under VMware’s stock repurchase programs are retired.
During May 2019, VMware’s board of directors authorized the repurchase of up to $1.5 billion of Class A common stock through January 29, 2021. During July 2020, VMware’s board of directors extended authorization of the existing stock repurchase program through January 28, 2022 and authorized the repurchase of up to an additional $1.0 billion of Class A common stock through January 28, 2022. As of July 31, 2020, the cumulative authorized amount remaining for stock repurchases was $1.7 billion.
The following table summarizes stock repurchase activity during the periods presented (aggregate purchase price in millions, shares in thousands):
 
Three Months Ended
 
Six Months Ended
 
July 31,
 
August 2,
 
July 31,
 
August 2,
 
2020
 
2019
 
2020
 
2019
Aggregate purchase price(1)
$
130

 
$
446

 
$
311

 
$
1,037

Class A common stock repurchased
919

 
2,431

 
2,459

 
5,695

Weighted-average price per share
$
141.04

 
$
183.53

 
$
126.30

 
$
182.06


(1) The aggregate purchase price of repurchased shares is classified as a reduction to additional paid-in capital until the balance is reduced to zero and the excess is recorded as a reduction to retained earnings.
VMware Restricted Stock
VMware’s restricted stock primarily consists of RSU awards granted to employees. The value of an RSU grant is based on VMware’s stock price on the date of the grant. The shares underlying the RSU awards are not issued until the RSUs vest. Upon vesting, each RSU converts into one share of VMware’s Class A common stock.
VMware’s restricted stock also includes PSU awards granted to certain VMware executives and employees. PSU awards have performance conditions and, in certain cases, a time-based or market-based vesting component. Upon vesting, PSU awards convert into VMware’s Class A common stock at various ratios ranging from 0.1 to 2.0 shares per PSU, depending upon
the degree of achievement of the performance or market-based target designated by each award. If minimum performance thresholds are not achieved, then no shares are issued.
The following table summarizes restricted stock activity since January 31, 2020 (units in thousands):
 
Number of Units
 
Weighted-Average Grant Date Fair Value
(per unit)
Outstanding, January 31, 2020
17,474

 
$
128.38

Granted
9,516

 
150.95

Vested
(5,497
)
 
110.07

Forfeited
(1,285
)
 
129.95

Outstanding, July 31, 2020
20,208

 
143.81


The aggregate vesting date fair value of VMware’s restricted stock that vested during the six months ended July 31, 2020, was $751 million. As of July 31, 2020, restricted stock representing 20.2 million shares of VMware’s Class A common stock were outstanding, with an aggregate intrinsic value of $2.8 billion based on VMware’s closing stock price as of July 31, 2020.
Net Excess Tax Benefits
Net excess tax benefits recognized in connection with stock-based awards are included in income tax benefit on the condensed consolidated statements of income. Net excess tax benefits recognized during the three and six months ended July 31, 2020 were $16 million and $29 million, respectively, and were $35 million and $117 million during the three and six months ended August 2, 2019, respectively.
Accumulated Other Comprehensive Income (Loss)
The changes in components of accumulated other comprehensive income (loss) during the periods presented were as follows (tables in millions):
 
Unrealized Gain (Loss) on
Forward Contracts
 
Foreign Currency Translation Adjustments
 
Total
Balance, January 31, 2020
$
—

 
$
(4
)
 
$
(4
)
Unrealized gains (losses), net of tax provision (benefit) of ($1), $—, and ($1)
(5
)
 
—

 
(5
)
Other comprehensive income (loss), net
(5
)
 
—

 
(5
)
Balance, July 31, 2020
$
(5
)
 
$
(4
)
 
$
(9
)
 
 
 
 
 
 
 
Unrealized Gain (Loss) on
Forward Contracts
 
Foreign Currency Translation Adjustment
 
Total
Balance, February 1, 2019
$
2

 
$
(4
)
 
$
(2
)
Unrealized gains (losses), net of tax provision (benefit) of $—, $— and $—
6

 
—

 
6

Amounts reclassified from accumulated other comprehensive income (loss) to the condensed consolidated statements of income (loss), net of tax (provision) benefit of $—, $— and $—
(1
)
 
—

 
(1
)
Other comprehensive income (loss), net
5

 
—

 
5

Balance, August 2, 2019
$
7

 
$
(4
)
 
$
3


The effective portion of gains or losses resulting from changes in the fair value of forward contracts designated as cash flow hedging instruments is reclassified to its related operating expense line item on the condensed consolidated statements of income in the same period that the underlying expenses are incurred. The amounts recorded to the related operating expense
functional line items on the condensed consolidated statements of income were not significant to the individual functional line items during the periods presented.