Annual report pursuant to Section 13 and 15(d)

Common Stock and Stockholders??? Equity (Deficit) (Tables)

v3.6.0.2
Common Stock and Stockholders’ Equity (Deficit) (Tables)
 12 Months Ended
Dec. 31, 2016
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]  
Schedule of Employee Service Share-based Compensation, Allocation of Recognized Period Costs
Stock-based compensation expense related to employee stock options and restricted stock units, including PRSUs, was allocated in the consolidated statements of operations as follows:
 
2016
 
2015
 
2014
 
(In millions)
Cost of sales
$
2

 
$
3

 
$
3

Research and development
49

 
36

 
44

Marketing, general, and administrative
35

 
24

 
34

Total stock-based compensation expense, net of tax of $0
$
86

 
$
63

 
$
81

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 31, 2016, December 26, 2015 and December 27, 2014 was $3.10, $1.02 and $1.46 per share, respectively, using the following weighted-average assumptions:
 
2016
 
2015
 
2014
Expected volatility
62.33
%
 
60.14
%
 
53.36
%
Risk-free interest rate
1.02
%
 
1.29
%
 
1.15
%
Expected dividends
—
%
 
—
%
 
—
%
Expected life (in years)
3.98

 
3.91

 
3.86

Schedule of Share-based Compensation, Stock Options, Activity
The following table summarizes stock option activity, including market-based stock options, and related information:
  
2016
 
2015
 
2014
  
Number
of Shares
 
Weighted-
Average
Exercise
Price
 
Number
of Shares
 
Weighted-
Average
Exercise
Price
 
Number
of Shares
 
Weighted-
Average
Exercise
Price
 
(In millions, except share price)
Stock options:
 
 
 
 
 
 
 
 
 
 
 
Outstanding at beginning of year
32

 
$
4.44

 
36

 
$
4.78

 
35

 
$
5.08

Granted
2

 
$
6.98

 
8

 
$
2.12

 
8

 
$
3.73

Canceled
(9
)
 
$
5.53

 
(9
)
 
$
4.91

 
(4
)
 
$
7.64

Exercised
(5
)
 
$
4.75

 
(3
)
 
$
1.61

 
(3
)
 
$
1.47

Outstanding at end of year
20

 
$
4.15

 
32

 
$
4.44

 
36

 
$
4.78

Exercisable at end of year
13

 
$
4.32

 
21

 
$
5.34

 
23

 
$
5.28

Schedule of Share-based Compensation, Restricted Stock Units, Activity
The summary of the changes in RSUs outstanding, including the PRSUs, during 2016, 2015 and 2014 is presented below:
  
2016
 
2015
 
2014
  
Number
of Shares
 
Weighted-
Average
Fair Value
 
Number
of Shares
 
Weighted-
Average
Fair Value
 
Number
of Shares
 
Weighted-
Average
Fair Value
 
(In millions except share price)
Unvested balance at beginning of period
51

 
$
2.61

 
43

 
$
4.05

 
40

 
$
4.52

Granted
29

 
$
4.72

 
38

 
$
2.03

 
23

 
$
3.89

Forfeited
(5
)
 
$
2.95

 
(15
)
 
$
3.71

 
(5
)
 
$
4.48

Vested
(23
)
 
$
2.56

 
(15
)
 
$
4.13

 
(15
)
 
$
4.90

Unvested balance at end of period
52

 
$
3.73

 
51

 
$
2.61

 
43

 
$
4.05

Schedule of Nonvested Performance-based Units Activity
The summary of the changes in the PRSUs during 2016, 2015 and 2014 is presented below.
  
2016
 
2015
 
2014
 
(Shares in millions)
Unvested shares at beginning of period
7

 
9

 
5

Granted
5

 
5

 
5

Forfeited
(2
)
 
(7
)
 
(1
)
Vested
(5
)
 
—

 
—

Unvested shares at end of period
5

 
7

 
9