Equity Plans

6 Months Ended

Feb. 27, 2020

Share-based Payment Arrangement [Abstract]

Equity Plans

Equity Plans

As of February 27, 2020, 92 million shares of our common stock were available for future awards under our equity plans.

Restricted Stock and Restricted Stock Units (“Restricted Stock Awards”)

Restricted Stock Award activity is summarized as follows:

	Quarter ended				Six months ended
	February 27, 2020		February 28, 2019		February 27, 2020		February 28, 2019
Restricted stock award shares granted	—		—		8		6
Weighted-average grant-date fair value per share	$	54.71	$	37.01	$	46.38	$	39.83

Employee Stock Purchase Plan (“ESPP”)

For the six-month ESPP period ended January 2020 and January 2019, we issued 2 million and 1 million shares, respectively, at a per share price of $38.16 and $32.50, respectively. Assumptions used in the Black-Scholes option valuation model for ESPP grants for the periods below were as follows:

Quarter ended	February 27, 2020		February 28, 2019
Weighted-average grant-date fair value per share	14.43		10.92
Average expected life in years	0.5		0.5
Weighted-average expected volatility	43	%	47	%
Weighted-average risk-free interest rate	1.5	%	2.5	%
Expected dividend yield	0	%	0	%

Stock-based Compensation Expense

	Quarter ended				Six months ended
	February 27, 2020		February 28, 2019		February 27, 2020		February 28, 2019
Stock-based compensation expense by caption
Cost of goods sold	$	37	$	23	$	68	$	49
Selling, general, and administrative	26		18		48		37
Research and development	22		16		41		32
	$	85	$	57	$	157	$	118
Stock-based compensation expense by type of award
Restricted stock awards	$	70	$	42	$	127	$	83
ESPP	11		8		19		16
Stock options	4		7		11		19
	$	85	$	57	$	157	$	118

The income tax benefits related to share-based compensation were $53 million and $79 million for the second quarter and first six months of 2020, respectively, and $30 million and $53 million for the second quarter and first six months of 2019, respectively. As of February 27, 2020, $656 million of total unrecognized compensation costs for unvested awards, before the effect of any future forfeitures, was expected to be recognized through the second quarter of 2024, resulting in a weighted-average period of 1.4 years.