Shareholders' Equity and Stock-Based Compensation (Tables)

9 Months Ended

Jun. 25, 2011

Components of Total Comprehensive Income, Net of Taxes

The following table summarizes the components of total comprehensive income, net of taxes, during the three- and nine-month periods ended June 25, 2011 and June 26, 2010 (in millions):

		September 30,		September 30,			September 30,		September 30,
	Three Months Ended					Nine Months Ended
	June 25, 2011		June 26, 2010			June 25, 2011		June 26, 2010
Net income	$	7,308	$	3,253		$	19,299	$	9,705
Other comprehensive income:
Change in unrecognized gains/losses on derivative instruments		112		13			273		41
Change in foreign currency translation		11		(54	)		101		(43	)
Change in unrealized gains/losses on marketable securities		140		24			61		33
Total comprehensive income	$	7,571	$	3,236		$	19,734	$	9,736

Other Comprehensive Income Related to Derivatives, Net of Taxes

The following table summarizes activity in other comprehensive income related to derivatives, net of taxes, held by the Company during the three- and nine-month periods ended June 25, 2011 and June 26, 2010 (in millions):

		September 30,		September 30,			September 30,			September 30,
	Three Months Ended					Nine Months Ended
	June 25, 2011		June 26, 2010			June 25, 2011			June 26, 2010
Change in fair value of derivatives	$	8	$	55		$	(175	)	$	91
Adjustment for net gains/losses realized and included in income		104		(42	)		448			(50	)
Change in unrecognized gains/losses on derivative instruments	$	112	$	13		$	273		$	41

Components of Accumulated Other Comprehensive Income, Net of Taxes

The following table summarizes the components of AOCI, net of taxes, as of June 25, 2011 and September 25, 2010 (in millions):

		September 30, 2009		September 30, 2009
	June 25, 2011		September 25, 2010
Net unrealized gains/losses on marketable securities	$	232	$	171
Net unrecognized gains/losses on derivative instruments		21		(252	)
Cumulative foreign currency translation		136		35
Accumulated other comprehensive income/(loss)	$	389	$	(46	)

Restricted Stock Unit Activity

A summary of the Company’s RSU activity and related information for the nine months ended June 25, 2011, is as follows (in thousands, except per share amounts):

		September 30,			September 30,		September 30,
	Number of Shares			Weighted- Average Grant  Date Fair Value		Aggregate Intrinsic Value
Balance at September 25, 2010		13,034		$	165.63
RSUs granted		5,232		$	296.08
RSUs vested		(4,224	)	$	166.49
RSUs cancelled		(609	)	$	183.53
Balance at June 25, 2011		13,433		$	215.35	$	4,383,924

Stock Option Activity and Related Information

A summary of the Company’s stock option activity and related information for the nine months ended June 25, 2011, is as follows (in thousands, except per share amounts and contractual term in years):

		September 30,			September 30,		September 30,		September 30,
	Number of Shares			Weighted- Average Exercise Price		Weighted- Average Remaining Contractual Term		Aggregate Intrinsic Value
Balance at September 25, 2010		21,725		$	90.46
Options granted		1		$	342.62
Options cancelled		(149	)	$	124.71
Options exercised		(7,822	)	$	63.20
Balance at June 25, 2011		13,755		$	105.62		2.54	$	3,036,128
Exercisable at June 25, 2011		12,431		$	99.59		2.43	$	2,818,845
Expected to vest after June 25, 2011		1,324		$	162.24		3.57	$	217,283

Summary of the Stock-Based Compensation Expense

The following table summarizes the stock-based compensation expense included in the Condensed Consolidated Statements of Operations for the three- and nine-month periods ended June 25, 2011 and June 26, 2010 (in millions):

		September 30,		September 30,		September 30,		September 30,
	Three Months Ended				Nine Months Ended
	June 25, 2011		June 26, 2010		June 25, 2011		June 26, 2010
Cost of sales	$	52	$	38	$	155	$	112
Research and development		119		80		336		240
Selling, general and administrative		113		101		379		303
Total stock-based compensation expense	$	284	$	219	$	870	$	655