Stock-Based Compensation

6 Months Ended

Oct. 03, 2014

Share-based Compensation [Abstract]

Stock-Based Compensation

Stock-Based Compensation

The following table sets forth the total stock-based compensation expense recognized in our Condensed Consolidated Statements of Income:

	Three Months Ended						Six Months Ended
	October 3, 2014			September 27, 2013			October 3, 2014			September 27, 2013
	(Dollars in millions)
Cost of revenue	$	6		$	4		$	12		$	8
Sales and marketing	18			15			35			29
Research and development	15			12			28			25
General and administrative	7			7			14			15
Total stock-based compensation expense	46			38			89			77
Tax benefit associated with stock-based compensation expense	(14		)	(10		)	(26		)	(21		)
Net stock-based compensation expense	$	32		$	28		$	63		$	56
Net stock-based compensation expense per share — basic	$	0.05		$	0.04		$	0.09		$	0.08
Net stock-based compensation expense per share — diluted	$	0.05		$	0.04		$	0.09		$	0.08

The following table summarizes additional information pertaining to our stock-based compensation:

	Six Months Ended
	October 3, 2014		September 27, 2013
	(Dollars in millions, except per grant data)
Restricted stock
Weighted-average fair value per grant	$	21.48	$	24.23
Fair value of awards granted	$	267	$	63
Total fair value of awards vested	$	87	$	89
Total unrecognized compensation expense	$	367	$	208
Weighted-average remaining vesting period	3 years		2 years
Performance-based restricted stock
Weighted-average fair value per grant	$	26.30	$	19.04
Fair value of awards granted	$	44	$	33
Total fair value of awards vested	$	21	$	12
Total unrecognized compensation expense	$	21	$	33
Weighted-average remaining vesting period	2 years		2 years
Stock options
Weighted-average fair value per grant	$	—	$	—
Total intrinsic value of stock options exercised	$	6	$	48
Total unrecognized compensation expense	$	2	$	9
Weighted-average remaining vesting period	1 year		1 year

Performance-based restricted stock units

Our Board of Directors appointed Michael A. Brown as our new President and Chief Executive Officer ("CEO"), effective September 24, 2014. During the second quarter of fiscal 2015, we granted 344,717 performance-based restricted stock units, ("PRUs") to our new CEO which had a fair value of $11 million. These PRUs are subject to vesting based on the Company’s achievement of (1) targeted non-GAAP earnings per share for fiscal 2015 and (2) the achievement of the total shareholder return (“TSR”) ranking for the Company as compared to the S&P 500 for the 2 year period ending at the end of fiscal 2016 and for the three year period ending at the end of fiscal 2017. The fair value of these PRUs was calculated using a Monte Carlo simulation option pricing model. Additionally, we granted 147,736 restricted stock units (“RSUs”) to Mr. Brown that will vest in three annual installments beginning on September 1, 2015. The compensation expense is amortized ratably over the requisite service period.