Quarterly report pursuant to Section 13 or 15(d)

Common Stock and Employee Equity Plans

v3.22.1
Common Stock and Employee Equity Plans
 3 Months Ended
Mar. 26, 2022
Equity [Abstract]  
Common Stock and Employee Equity Plans Common Stock and Employee Equity Plans
Common Stock
Shares of common stock outstanding were as follows:
Three Months Ended
March 26,
2022		 March 27,
2021
(In millions)
Balance, beginning of period 1,207  1,211 
Common stock issued for the acquisition of Xilinx 429  — 
Common stock issued under employee equity plans 1  1 
Common stock repurchases for tax withholding on equity awards (1) — 
Issuance of common stock to settle convertible debt —  3 
Repurchases of common stock (16) — 
Balance, end of period 1,620  1,215 

Stock Repurchase Program
In May 2021, the Company’s Board of Directors approved a stock repurchase program of up to $4 billion of the Company’s common stock (Existing Repurchase Program). In February 2022, the Company’s Board of Directors approved a new stock repurchase program in addition to the Existing Repurchase Program to purchase up to $8 billion of outstanding common stock in the open market (collectively referred to as the “Repurchase Program”). During the three months ended March 26, 2022, the Company repurchased 15.8 million shares of its common stock under the Repurchase Program for $1.9 billion. As of March 26, 2022, $8.3 billion remains available for future stock repurchases under the Repurchase Program. The stock Repurchase Program does not obligate the Company to acquire any common stock, has no termination date and may be suspended or discontinued at any time.
Stock-based Compensation
Stock-based compensation expense was recorded in the Condensed Consolidated Statements of Operations as follows: 
Three Months Ended
March 26,
2022		 March 27,
2021
(In millions)
Cost of sales $ 4  $ 1 
Research and development 113  55 
Marketing, general and administrative 82  29 
Total stock-based compensation expense before income taxes 199  85 
Income tax benefit (43) (13)
Total stock-based compensation expense after income taxes $ 156  $ 72 
The Company recorded $25 million of acquisition-related stock-based compensation expense during the three months ended March 26, 2022 under post-acquisition service conditions.
Xilinx Replacement Awards
In connection with the Merger, the Company issued equity awards as replacement for assumed equity awards to Xilinx employees. The replacement awards include restricted stock units of approximately 12 million shares with a weighted average fair value of $103.35 per share and have terms that are substantially the same as the assumed Xilinx awards. The fair value of replacement awards related to services rendered up to the Acquisition Date was recognized as a component of the total purchase consideration while the remaining fair value of replacement awards attributable to post-combination services will be recognized as stock-based compensation expense over the remaining post-acquisition vesting period.