Equity Plans

As of May 29, 2014, we had an aggregate of 164 million shares of common stock reserved for the issuance of stock options and restricted stock awards, of which 64 million shares were subject to outstanding awards and 100 million shares were available for future awards. Awards are subject to terms and conditions as determined by our Board of Directors.

Stock Options

Stock options granted and assumptions used in the Black-Scholes option valuation model are presented below:



	Quarter Ended						Nine Months Ended
	May 29, 2014			May 30, 2013			May 29, 2014			May 30, 2013
Stock options granted	1			—			12			18
Weighted-average grant-date fair value per share	$	11.35		$	4.79		$	9.38		$	3.29
Average expected life in years	5.7			4.8			4.9			5.1
Weighted-average expected volatility	52		%	55		%	48		%	60		%
Weighted-average risk-free interest rate	1.8		%	0.7		%	1.6		%	0.7		%

The fair values of option awards were estimated at each grant date using the Black-Scholes option valuation model. The Black-Scholes model requires the input of assumptions, including the expected stock-price volatility and estimated option life. The expected volatilities utilized were based on implied volatilities from traded options on our stock and on historical volatility. The expected lives of options granted were based, in part, on historical experience and on the terms and conditions of the options. The risk-free interest rates utilized were based on the U.S. Treasury yield in effect at each grant date. No dividends were assumed in estimated option values.

Restricted Stock and Restricted Stock Units ("Restricted Stock Awards")

As of May 29, 2014, there were 13 million shares of Restricted Stock Awards outstanding, of which 1 million were performance-based Restricted Stock Awards. For service-based Restricted Stock Awards, restrictions generally lapse in one-fourth increments during each year of employment after the grant date. Restricted Stock Awards granted are presented below:



	Quarter Ended				Nine Months Ended
	May 29, 2014		May 30, 2013		May 29, 2014		May 30, 2013
Restricted stock awards granted	—		—		7		7
Weighted-average grant-date fair values per share	$	22.73	$	9.97	$	21.39	$	6.21

Stock-based Compensation Expense



	Quarter Ended				Nine Months Ended
	May 29, 2014		May 30, 2013		May 29, 2014		May 30, 2013
Stock-based compensation expense by caption:
Cost of goods sold	$	12	$	7	$	27	$	20
Selling, general and administrative	12		10		36		28
Research and development	7		4		17		13
Other	1		—		1		—
	$	32	$	21	$	81	$	61

Stock-based compensation expense by type of award:
Stock options	$	16	$	14	$	44	$	41
Restricted stock awards	16		7		37		20
	$	32	$	21	$	81	$	61

As of May 29, 2014, $292 million of total unrecognized compensation costs, net of estimated forfeitures, related to non-vested awards was expected to be recognized through the third quarter of 2018, resulting in a weighted-average period of 1.5 years. Stock-based compensation expense in the above presentation does not reflect any significant income tax benefits, which is consistent with our treatment of income or loss from our U.S. operations. (See "Income Taxes" note.)