XML 51 R40.htm IDEA: XBRL DOCUMENT v3.20.1
Stock Purchase and Award Plans (Tables)
12 Months Ended
Apr. 24, 2020
Share-based Payment Arrangement [Abstract]  
Schedule of Stock Options Valuation Assumptions
The following table provides the weighted average fair value of options granted to employees and the related assumptions used in the Black-Scholes model:
 Fiscal Year
 202020192018
Weighted average fair value of options granted$15.49  $14.77  $13.71  
Assumptions used:   
Expected life (years)(1)
6.16.16.2
Risk-free interest rate(2)
1.88 %2.90 %2.00 %
Volatility(3)
17.97 %17.77 %19.51 %
Dividend yield(4)
2.09 %2.25 %2.19 %
(1)The Company analyzes historical employee stock option exercise and termination data to estimate the expected life assumption. The Company calculates the expected life assumption using the midpoint scenario, which combines historical exercise data with hypothetical exercise data, as the Company believes this data currently represents the best estimate of the expected life of a new employee option.
(2)The rate is based on the grant date yield of a zero-coupon U.S. Treasury bond whose maturity period equals the expected term of the option.
(3)Expected volatility is based on a blend of historical volatility and an implied volatility of the Company’s ordinary shares. Implied volatility is based on market traded options of the Company’s ordinary shares.
(4)The dividend yield rate is calculated by dividing the Company’s annual dividend, based on the most recent quarterly dividend rate, by the closing stock price on the grant date.
Schedule of Stock-Based Compensation Expense The following table presents the components and classification of stock-based compensation expense recognized for stock options, restricted stock, and ESPP in fiscal years 2020, 2019, and 2018:
 Fiscal Year
(in millions)202020192018
Stock options$61  $72  $132  
Restricted stock205  189  185  
Employee stock purchase plan31  29  27  
Total stock-based compensation expense$297  $290  $344  
Cost of products sold$28  $30  $44  
Research and development expense36  36  38  
Selling, general, and administrative expense233  224  262  
Total stock-based compensation expense297  290  344  
Income tax benefits(51) (54) (82) 
Total stock-based compensation expense, net of tax$246  $236  $262  
Schedule of Stock Options Activity The following table summarizes all stock option activity, including activity from options assumed or issued as a result of acquisitions, during fiscal year 2020:
 Options
(in thousands)
Wtd. Avg.
Exercise
Price
Wtd. Avg. Remaining Contractual Term (in years)Aggregate Intrinsic Value (in millions)
Outstanding at April 26, 201931,677  $71.52  
Granted4,349  103.26  
Exercised(8,165) 62.49  
Expired/Forfeited(793) 90.74  
Outstanding at April 24, 202027,068  78.70  5.9$574  
Expected to vest at April 24, 20208,742  94.12  8.460  
Exercisable at April 24, 202017,878  70.70  4.5512  
The following table summarizes the total cash received from the issuance of new shares upon stock option award exercises, the total intrinsic value of options exercised, and the related tax benefit during fiscal years 2020, 2019, and 2018:
Fiscal Year
(in millions)202020192018
Cash proceeds from options exercised$484  $825  $250  
Intrinsic value of options exercised349  383  248  
Tax benefit related to options exercised75  78  75  
Schedule of Restricted Stock Award Activity The following table summarizes restricted stock activity, including activity from restricted stock assumed or issued as a result of acquisitions, during fiscal year 2020:
 Units
(in thousands)
Wtd. Avg.
Grant
Price
Nonvested at April 26, 20197,996  $84.78  
Granted3,205  103.52  
Vested(2,910) 83.30  
Forfeited(666) 89.75  
Nonvested at April 24, 20207,625  92.52  
The following table summarizes the weighted-average grant date fair value of restricted stock granted, total fair value of restricted stock vested and related tax benefit during fiscal years 2020, 2019, and 2018:
Fiscal Year
(in millions, except per share data)202020192018
Weighted-average grant-date fair value per restricted stock$103.52  $88.78  $83.88  
Fair value of restricted stock vested242  174  160  
Tax benefit related to restricted stock vested62  45  63