Annual report pursuant to Section 13 and 15(d)

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

v3.20.4
Common Stock and Stock-Based Incentive Compensation Plans (Tables)
 12 Months Ended
Dec. 26, 2020
Share-based Payment Arrangement [Abstract]  
Schedule of Common Shares Outstanding
Shares of common stock outstanding were as follows:
Year Ended
December 26,
2020		 December 28,
2019		 December 29,
2018
(In millions)
Balance, beginning of period 1,170  1,005  967 
Common stock issued under employee equity plans 14  20  31 
Common stock repurchases for tax withholding on equity awards (1) —  — 
Issuance of common stock upon warrant exercise —  75  — 
Issuance of common stock to settle convertible debt 28  69  — 
Issuance of treasury stock to partially settle debt —  1  7 
Balance, end of period 1,211  1,170  1,005 
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:
2020 2019 2018
  (In millions)
Cost of sales $ 6  $ 6  $ 4 
Research and development 173  129  91 
Marketing, general, and administrative 95  62  42 
Total stock-based compensation expense before income taxes 274  197  137 
Income tax benefit (42) —  — 
Total stock-based compensation expense, net of income taxes $ 232  $ 197  $ 137 
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 26, 2020, December 28, 2019 and December 29, 2018 was $38.49, $13.31 and $7.62 per share, respectively, using the following assumptions:
2020 2019 2018
Expected volatility 57.87  %
52.60% - 56.51%
51.51% - 60.46%
Risk-free interest rate 0.18  %
1.53% - 2.51%
2.20% - 2.83%
Expected dividends —  % —  % —  %
Expected life (in years) 4.3
3.94 - 3.95
3.92 - 3.94
The weighted-average grant date fair values of PRSUs granted during 2020, 2019 and 2018 were $122.95, $50.00 and $21.67, respectively, using the following assumptions:
2020 2019 2018
Expected volatility
55.74% - 60.10%
60.54% - 62.52%
63.77% - 67.97%
Risk-free interest rate
0.14% - 1.41%
1.56% - 2.49%
2.06% - 2.82%
Expected dividends —  % —  % —  %
Expected term (in years)
2.48 - 3.00
2.48 - 5.00
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 28, 2019 10  $ 7.56 
Granted —  $ 84.85 
Exercised (3) $ 3.62 
Balance as of December 26, 2020 7  $ 12.91  $ 589  2.92
Exercisable December 26, 2020 6  $ 7.01  $ 538  2.43
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
Fair Value		 Aggregate Intrinsic Value Weighted-Average Remaining Contractual Life
(in years)
  (In millions except share price)
Unvested shares as of December 28, 2019 18  $ 22.93 
Granted 4  $ 78.59 
Forfeited (1) $ 30.82 
Vested (9) $ 20.67 
Unvested shares as of December 26, 2020 12  $ 43.98  $ 1,078  1.13
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 28, 2019 3  $ 36.13 
Granted 1  $ 122.95 
Forfeited —  $ 45.25 
Vested (1) $ 16.45 
Unvested shares as of December 26, 2020 3  $ 55.63  $ 248  2.25
Schedule of ESPP The weighted-average grant date fair value for the ESPP during 2020, 2019 and 2018 was $20.97, $9.96 and $4.71 per share, respectively, using the following assumptions:
2020 2019 2018
Expected volatility
55.16% - 66.53%
48.95% - 67.02%
45.88% - 66.66%
Risk-free interest rate
0.11% - 0.15%
1.58% - 2.46%
2.05% - 2.52%
Expected dividends —  % —  % —  %
Expected term (in years) 0.50 0.50 0.50