Equity Plans

9 Months Ended

Jun. 02, 2022

Share-based Payment Arrangement [Abstract]

Equity Plans

Equity Plans

As of June 2, 2022, 94 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 Awards activity is summarized as follows:

	Quarter ended				Nine months ended
	June 2, 2022		June 3, 2021		June 2, 2022		June 3, 2021
Restricted stock award shares granted	2		1		12		11
Weighted-average grant-date fair value per share	$	71.58	$	84.73	$	71.31	$	53.00

In the first quarter of 2022, our Board of Directors approved dividend equivalent rights for unvested restricted stock units awarded on or after October 13, 2021.

Employee Stock Purchase Plan (“ESPP”)

For each nine month period ended June 2, 2022 and June 3, 2021, we issued 2 million shares at a per share price of $65.94 and $42.55, respectively.

Stock-based Compensation Expense

Stock based compensation expense recognized in our statements of operations is presented below. Stock-based compensation expense of $43 million and $30 million was capitalized and remained in inventory as of June 2, 2022 and September 2, 2021, respectively.

	Quarter ended				Nine months ended
	June 2, 2022		June 3, 2021		June 2, 2022		June 3, 2021
Stock-based compensation expense by caption
Cost of goods sold	$	57	$	45	$	145	$	143
Research and development	45		29		128		82
Selling, general, and administrative	33		24		98		77
Restructure	—		—		(5)		—
	$	135	$	98	$	366	$	302
Stock-based compensation expense by type of award
Restricted stock awards	$	116	$	84	$	316	$	255
ESPP	19		12		49		39
Stock options	—		2		1		8
	$	135	$	98	$	366	$	302

As of June 2, 2022, $1.09 billion of total unrecognized compensation costs for unvested awards, before the effect of any future forfeitures, was expected to be recognized through the third quarter of 2026, resulting in a weighted-average period of 1.4 years.