Stock-Based Compensation

9 Months Ended

Jan. 02, 2015

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						Nine Months Ended
	January 2, 2015			December 27, 2013			January 2, 2015			December 27, 2013
	(Dollars in millions)
Cost of revenue	$	6		$	5		$	18		$	13
Sales and marketing	20			15			55			44
Research and development	17			9			45			34
General and administrative	8			5			22			20
Total stock-based compensation expense	51			34			140			111
Tax benefit associated with stock-based compensation expense	(14		)	(7		)	(40		)	(28		)
Net stock-based compensation expense	$	37		$	27		$	100		$	83

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

	Nine Months Ended
	January 2, 2015		December 27, 2013
	(Dollars in millions, except per grant data)
Restricted stock units
Weighted-average fair value per grant	$	22.55	$	24.46
Fair value of awards granted	$	390	$	231
Total fair value of awards vested	$	98	$	97
Total unrecognized compensation expense	$	406	$	273
Weighted-average remaining vesting period	3 years		3 years
Performance-based restricted stock units
Weighted-average fair value per grant	$	26.30	$	19.04
Fair value of awards granted	$	44	$	33
Total fair value of awards vested	$	22	$	12
Total unrecognized compensation expense	$	20	$	13
Weighted-average remaining vesting period	2 years		2 years
Stock options
Weighted-average fair value per grant	$	—	$	—
Total intrinsic value of stock options exercised	$	11	$	54
Total unrecognized compensation expense	$	1	$	6
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 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.