Employee Benefit Plans (Tables)

12 Months Ended

Jul. 25, 2020

Summary of Share-Based Compensation Expense

Share-based compensation expense consists primarily of expenses for stock options, stock purchase rights, restricted stock, and RSUs granted to employees. The following table summarizes share-based compensation expense (in millions):



Years Ended	July 25, 2020		July 27, 2019		July 28, 2018
Cost of sales—product	$	93	$	90	$	94
Cost of sales—service	144		130		133
Share-based compensation expense in cost of sales	237		220		227
Research and development	592		540		538
Sales and marketing	500		519		555
General and administrative	215		250		246
Restructuring and other charges	25		62		33
Share-based compensation expense in operating expenses	1,332		1,371		1,372
Total share-based compensation expense	$	1,569	$	1,591	$	1,599
Income tax benefit for share-based compensation	$	452	$	542	$	558

Summary of Restricted Stock and Stock Unit Activity

A summary of the restricted stock and stock unit activity, which includes time-based and performance-based or market-based RSUs, is as follows (in millions, except per-share amounts):



	Restricted Stock/ Stock Units		Weighted-Average Grant Date Fair Value per Share		Aggregate Fair Value
UNVESTED BALANCE AT JULY 29, 2017	141		$	26.94
Granted	46		35.62
Assumed from acquisitions	1		28.26
Vested	(53	)	26.02		$	1,909
Canceled/forfeited/other	(16	)	28.37
UNVESTED BALANCE AT JULY 28, 2018	119		30.56
Granted	45		47.71
Vested	(50	)	29.25		$	2,446
Canceled/forfeited/other	(14	)	32.01
UNVESTED BALANCE AT JULY 27, 2019	100		38.66
Granted	49		42.61
Vested	(44	)	35.20		$	2,045
Canceled/forfeited/other	(9	)	40.45
UNVESTED BALANCE AT JULY 25, 2020	96		$	42.03

Schedule of Valuation Assumptions for Time-based RSUs and PRSUs

The assumptions for the valuation of time-based RSUs and PRSUs are summarized as follows:



	RESTRICTED STOCK UNITS
Years Ended	July 25, 2020			July 27, 2019			July 28, 2018
Number of shares granted (in millions)	47			43			43
Grant date fair value per share	$	42.68		$	47.75		$	35.81
Weighted-average assumptions/inputs:
Expected dividend yield	3.1		%	2.7		%	3.2		%
Range of risk-free interest rates	0.0% – 2.0%			0.0% – 2.9%			0.0% – 2.7%



	PERFORMANCE BASED RESTRICTED STOCK UNITS
Years Ended	July 25, 2020			July 27, 2019			July 28, 2018
Number of shares granted (in millions)	2			2			3
Grant date fair value per share	$	41.91		$	47.00		$	32.69
Weighted-average assumptions/inputs:
Expected dividend yield	2.8		%	2.8		%	3.5		%
Range of risk-free interest rates	1.7% – 2.0%			2.1% – 3.0%			1.0% – 2.7%
Range of expected volatilities for index	13.7% - 69.0%			13.0% - 65.2%			12.5% – 82.8%

Schedule of Valuation Assumptions for Employee Stock Purchase Rights

The assumptions for the valuation of employee stock purchase rights are summarized as follows:



	EMPLOYEE STOCK PURCHASE RIGHTS
Years Ended	July 25, 2020			July 27, 2019			July 28, 2018
Weighted-average assumptions:
Expected volatility	22.2		%	20.4		%	22.1		%
Risk-free interest rate	1.8		%	1.9		%	1.3		%
Expected dividend	3.0		%	3.0		%	3.1		%
Expected life (in years)	1.3			1.3			1.3
Weighted-average estimated grant date fair value per share	$	10.20		$	9.06		$	7.48