Annual report pursuant to Section 13 and 15(d)

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

v3.22.4
Common Stock and Stock-Based Incentive Compensation Plans (Tables)
 12 Months Ended
Dec. 31, 2022
Share-Based Payment Arrangement [Abstract]  
Schedule of Common Shares Outstanding Shares of common stock outstanding were as follows:
Year Ended
December 31,
2022		 December 25,
2021		 December 26,
2020
(In millions)
Balance, beginning of period 1,207  1,211  1,170 
Common stock issued in the acquisition of Xilinx 429  —  — 
Common stock issued under employee equity plans 17  12  14 
Repurchases of common stock (36) (17) — 
Common stock repurchases for tax withholding on equity awards (5) (2) (1)
Issuance of common stock to settle convertible debt —  3  28 
Balance, end of period 1,612  1,207  1,211 
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:
Year Ended
December 31, 2022 December 25, 2021 December 26, 2020
  (In millions)
Cost of sales $ 29  $ 5  $ 6 
Research and development 697  246  173 
Marketing, general, and administrative 355  128  95 
Total stock-based compensation expense before income taxes 1,081  379  274 
Income tax benefit (179) (58) (42)
Total stock-based compensation expense, net of income taxes $ 902  $ 321  $ 232 
Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions The weighted-average estimated fair value of employee stock options granted during 2022, 2021 and 2020 was $44.35, $46.07 and $38.49 per share, respectively, using the following assumptions:
December 31, 2022 December 25, 2021 December 26, 2020
Expected volatility 51.28  % 51.77  % 57.87  %
Risk-free interest rate 3.00  % 0.69  % 0.18  %
Expected dividends —  % —  % —  %
Expected life (in years) 4.75 4.55 4.30
The weighted-average grant date fair values of PRSUs granted during 2022, 2021 and 2020 were $121.12, $153.89 and $122.95, respectively, using the following assumptions:
December 31, 2022 December 25, 2021 December 26, 2020
Expected volatility
50.65% - 53.51%
 57.75  %
55.74% - 60.10%
Risk-free interest rate
1.14% - 3.17%
 0.43  %
0.14% - 1.41%
Expected dividends —  % —  % —  %
Expected term (in years)
2.07 - 3.07
 3.00
2.48 - 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 25, 2021 5  $ 23.98 
Granted 1  $ 95.54 
Exercised (2) $ 4.27 
Balance as of December 31, 2022 4  $ 42.35  $ 130  3.17
Exercisable December 31, 2022 3  $ 25.67  $ 130  2.27
Schedule of Share-based Compensation, Restricted Stock Units, Activity
The following table summarizes time-based RSU activity and related information:
Number
of Shares		 Weighted- Average Grant Date Fair Value Aggregate Intrinsic Value Weighted-Average Remaining Contractual Life
(in years)
  (In millions except share price)
Unvested shares as of December 25, 2021 10  $ 79.03 
Assumed with acquisition of Xilinx 12  $ 103.35 
Granted 17  $ 92.92 
Forfeited (2) $ 98.06 
Vested (9) $ 86.27 
Unvested shares as of December 31, 2022 28  $ 95.49  $ 1,810  1.67
Schedule of Nonvested Performance-based Units Activity
The following table summarizes PRSU activity and related information:
  Number
of Shares		 Weighted-Average
Grant Date Fair Value		 Aggregate Intrinsic Value Weighted-Average Remaining Contractual Life
(in years)
(In millions except share price)
Unvested shares as of December 25, 2021 2  $ 78.59 
Granted 1  $ 121.12 
Forfeited —  $ — 
Vested (1) $ 51.77 
Unvested shares as of December 31, 2022 2  $ 110.31  $ 118  1.76
Schedule of ESPP The weighted-average grant date fair value for the ESPP during 2022, 2021 and 2020 was $24.71, $27.27 and $20.97 per share, respectively, using the following assumptions:
December 31, 2022 December 25, 2021 December 28, 2020
Expected volatility
58.15% - 63.76%
36.90% - 39.39%
55.16% - 66.53%
Risk-free interest rate
1.43% - 4.52%
0.04% - 0.07%
0.11% - 0.15%
Expected dividends —  % —  % —  %
Expected term (in years) 0.50 0.50 0.50