Annual report pursuant to Section 13 and 15(d)

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

v3.24.0.1
Common Stock and Stock-Based Incentive Compensation Plans (Tables)
 12 Months Ended
Dec. 30, 2023
Share-Based Payment Arrangement [Abstract]  
Schedule of Common Shares Outstanding
Shares of common stock outstanding were as follows:
Year Ended
December 30,
2023		 December 31,
2022		 December 25,
2021
(In millions)
Balance, beginning of period 1,612  1,207  1,211 
Common stock issued in the acquisition of Xilinx —  429  — 
Common stock issued under employee equity plans 17  17  12 
Repurchases of common stock (10) (36) (17)
Common stock repurchases for tax withholding on equity awards (4) (5) (2)
Issuance of common stock upon warrant exercise 1  —  — 
Issuance of common stock to settle convertible debt —  —  3 
Balance, end of period 1,616  1,612  1,207 
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 30, 2023 December 31, 2022 December 25, 2021
  (In millions)
Cost of sales $ 30  $ 29  $ 5 
Research and development 1,002  697  246 
Marketing, general, and administrative 352  355  128 
Total stock-based compensation expense before income taxes 1,384  1,081  379 
Income tax benefit (249) (179) (58)
Total stock-based compensation expense, net of income taxes $ 1,135  $ 902  $ 321 
Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions The weighted-average estimated fair value of employee stock options granted during 2023, 2022 and 2021 was $53.72, $44.35 and $46.07 per share, respectively, using the following assumptions:
December 30, 2023 December 31, 2022 December 25, 2021
Expected volatility
52.36% - 52.42%
 51.28  % 51.77  %
Risk-free interest rate
3.93% - 4.11%
 3.00  % 0.69  %
Expected dividends —  % —  % —  %
Expected life (in years)
4.96 - 5.04
 4.75 4.55
The weighted-average grant date fair values of PRSUs granted during 2023, 2022 and 2021 were $134.87, $121.12 and $153.89, respectively, using the following assumptions:
December 30, 2023 December 31, 2022 December 25, 2021
Expected volatility
51.12% - 56.22%
50.65% - 53.51%
 57.75  %
Risk-free interest rate
4.30% - 4.36%
1.14% - 3.17%
 0.43  %
Expected dividends —  % —  % —  %
Expected term (in years)
2.17 - 3.00
2.07 - 3.07
 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 31, 2022 4  $ 42.35 
Granted 1  $ 108.19 
Canceled —  $ 98.54 
Exercised (2) $ 18.22 
Balance as of December 30, 2023 3  $ 68.33  $ 205  3.87
Exercisable December 30, 2023 2  $ 49.54  $ 164  2.73
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
 
(In millions)
Unvested shares as of December 31, 2022 28  $ 95.49 
Granted 16  $ 106.28 
Forfeited (2) $ 99.48 
Vested (10) $ 99.83 
Unvested shares as of December 30, 2023 32  $ 100.65 
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
(In millions)
Unvested shares as of December 31, 2022 2  $ 110.31 
Granted 1  $ 134.87 
Forfeited —  $ 134.53 
Vested (1) $ 129.78 
Unvested shares as of December 30, 2023 2  $ 117.65 
Schedule of ESPP The weighted-average grant date fair value for the ESPP during 2023, 2022 and 2021 was $31.11, $24.71 and $27.27 per share, respectively, using the following assumptions:
December 30, 2023 December 31, 2022 December 25, 2021
Expected volatility
45.74% - 49.40%
58.15% - 63.76%
36.90% - 39.39%
Risk-free interest rate
5.13% - 5.46%
1.43% - 4.52%
0.04% - 0.07%
Expected dividends —  % —  % —  %
Expected term (in years) 0.50 0.50 0.50