Annual report pursuant to Section 13 and 15(d)

Common Stock and Stock-Based Incentive Compensation Plans (Tables)

v3.19.3.a.u2
Common Stock and Stock-Based Incentive Compensation Plans (Tables)
 12 Months Ended
Dec. 28, 2019
Share-based Payment Arrangement [Abstract]  
Schedule of Common Shares Outstanding
Shares of common stock outstanding were as follows:
 
Year Ended
 
December 28,
2019
 
December 29,
2018
 
December 30,
2017
 
(In millions)
Number of shares
 
 
 
 
 
     Balance, beginning of period
1,005

 
967

 
935

     Common stock issued under employee equity
incentive plans, net of tax withholding
20

 
31

 
32

     Issuance of common stock upon warrant exercise
75

 
—

 
—

Issuance of common stock to partially settle convertible debt
69

 
—

 
—

Issuance of treasury stock to partially settle debt
1

 
7

 
—

     Balance, end of period
1,170

 
1,005

 
967


Schedule of Employee Service Share-based Compensation, Allocation of Recognized Period Costs
Stock-based compensation expense was allocated in the consolidated statements of operations as follows:
 
2019
 
2018
 
2017
 
(In millions)
Cost of sales
$
6

 
$
4

 
$
2

Research and development
129

 
91

 
57

Marketing, general, and administrative
62

 
42

 
38

Total stock-based compensation expense, net of tax of $0
$
197

 
$
137

 
$
97


Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions The weighted-average estimated fair value of employee stock options granted for the years ended December 28, 2019, December 29, 2018 and December 30, 2017 was $13.31, $7.62 and $5.46 per share, respectively, using the following assumptions:
 
2019
 
2018
 
2017
Expected volatility
52.60% - 56.51%

 
51.51% - 60.46%

 
57.26
%
Risk-free interest rate
1.53% - 2.51%

 
2.20% - 2.83%

 
1.68
%
Expected dividends
—
%
 
—
%
 
—
%
Expected life (in years)
3.94 - 3.95

 
3.92 - 3.94

 
3.92


weighted-average grant date fair values of PRSUs granted during 2019, 2018 and 2017 were $50.00, $21.67 and $17.18, respectively, using the following assumptions:
 
2019
 
2018
 
2017
Expected volatility
60.54% - 62.52%

 
63.77% - 67.97%

 
64.39
%
Risk-free interest rate
1.56% - 2.49%

 
2.06% - 2.82%

 
1.50
%
Expected dividends
—
%
 
—
%
 
—
%
Expected term (in years)
2.48 - 5.00

 
2.48 - 3.00

 
3.00


Schedule of Share-based Compensation, Stock Options, Activity
The following table summarizes stock option activity and related information:
  
Outstanding Number
of Shares
 
Weighted-
Average
Exercise
Price
 
Aggregate Intrinsic Value
 
Weighted-Average Remaining Contractual Life
(in years)
 
(In millions, except share price)
 
 
Balance as of December 29, 2018
13

 
$
5.33

 
 
 
 
Granted
1

 
$
32.86

 
 
 
 
Canceled
(1
)

$
17.52

 
 
 
 
Exercised
(3
)
 
$
3.74

 
 
 
 
Balance as of December 28, 2019
10

 
$
7.56

 
$
226

 
3.20
Exercisable December 28, 2019
9

 
$
4.56

 
$
215

 
2.72

Schedule of Share-based Compensation, Restricted Stock Units, Activity
  
Number
of Shares
 
Weighted-
Average
Fair Value
 
Aggregate Intrinsic Value
 
Weighted-Average Remaining Contractual Life
(in years)
 
(In millions except share price)
 
 
Unvested shares as of December 29, 2018
24

 
$
12.86

 
 
 
 
Granted
8

 
$
32.52

 
 
 
 
Forfeited
(2
)
 
$
16.49

 
 
 
 
Vested
(12
)
 
$
10.39

 
 
 
 
Unvested shares as of December 28, 2019
18

 
$
22.93

 
$
503

 
1.19

Schedule of Nonvested Performance-based Units Activity
The following table summarizes PRSU activity and related information:
 
Number
of Shares
 
Weighted-
Average
Fair Value
 
Aggregate Intrinsic Value
 
Weighted-Average Remaining Contractual Life
(in years)
 
(In millions except share price)
 
 
Unvested shares as of December 29, 2018
2

 
$
14.58

 
 
 
 
Granted
2

 
$
50.00

 
 
 
 
Forfeited
—

 
$
22.39

 
 
 
 
Vested
(1
)
 
$
3.60

 
 
 
 
Unvested shares as of December 28, 2019
3

 
$
36.13

 
$
90

 
2.56

Schedule of ESPP
ESPP. The weighted-average grant date fair value for the ESPP during 2019, 2018 and 2017 was $9.96, $4.71 and $3.46 per share, respectively, using the following assumptions:
 
2019
 
2018
 
2017
Expected volatility
48.95% - 67.02%

 
45.88% - 66.66%

 
56.07
%
Risk-free interest rate
1.58% - 2.46%

 
2.05% - 2.52%

 
1.36
%
Expected dividends
—
%
 
—
%
 
—
%
Expected term (in years)
0.50

 
0.50

 
0.49