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Stock-Based Compensation (Tables)

9 Months Ended

Aug. 28, 2020

Share-based Payment Arrangement [Abstract]

Restricted stock unit activity for the nine months ended August 28, 2020 was as follows:


	Number of Shares (in millions)	Weighted Average Grant Date Fair Value		Aggregate Fair Value⁽¹⁾ (in millions)
Beginning outstanding balance	8.6	$	211.95
Awarded	3.0	$	352.14
Released	(3.7)	$	187.73
Forfeited	(0.5)	$	251.12

Ending outstanding balance	7.4	$	277.60	$	3,842

Expected to vest	6.8	$	275.62	$	3,510

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(1) The aggregate fair value is calculated using the closing stock price as of August 28, 2020 of $516.44.

Performance Share Activity

Performance share activity for the nine months ended August 28, 2020 was as follows:


	Number of Shares (in millions)	Weighted Average Grant Date Fair Value		Aggregate Fair Value⁽¹⁾ (in millions)
Beginning outstanding balance	1.0	$	199.78
Awarded	0.6	$	271.62
Achieved	(0.8)	$	118.84
Forfeited	(0.1)	$	302.12
Ending outstanding balance	0.7	$	328.04	$	372

Expected to vest	0.7	$	321.11	$	336

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(1) The aggregate fair value is calculated using the closing stock price as of August 28, 2020 of $516.44.

Employee Stock Purchase Plan, Valuation Assumptions

The assumptions used to value employee stock purchase rights during the nine months ended August 28, 2020 and August 30, 2019 were as follows:


	Three Months			Nine Months
	2020	2019	2020	2019
Expected life (in years)	0.5 - 2.0	0.5 - 2.0	0.5 - 2.0	0.5 - 2.0
Volatility	36% - 46%	30%	24% - 46%	30% - 35%
Risk free interest rate	0.16% - 0.17%	1.78%	0.16% - 1.58%	1.78% - 2.47%

Stock-Based Compensation, Income Statement Location

Total stock-based compensation costs included in our condensed consolidated statements of income for the three months ended August 28, 2020 and August 30, 2019 were as follows:


(in millions)	2020									2019
Income Statement Classifications	Restricted Stock Units and Performance Share Awards			Stock Purchase Rights and Options			Restricted Stock Units and Performance Share Awards			Stock Purchase Rights and Options
Cost of revenue		$	11		$	3		$	10		$	3
Research and development		111			10			84			10
Sales and marketing		53			12			48			13
General and administrative		29			3			25			3
Total		$	204		$	28		$	167		$	29

Total stock-based compensation costs included in our condensed consolidated statements of income for the nine months ended August 28, 2020 and August 30, 2019 were as follows:


(in millions)	2020									2019
Income Statement Classifications	Restricted Stock Units and Performance Share Awards			Stock Purchase Rights and Options			Restricted Stock Units and Performance Share Awards			Stock Purchase Rights and Options
Cost of revenue		$	37		$	9		$	30		$	10
Research and development		319			28			245			28
Sales and marketing		166			29			159			33
General and administrative		81			7			72			8
Total		$	603		$	73		$	506		$	79