8. Stockholders’ Equity

Stock Options

The following table summarizes activity related to our stock options (in millions, except for exercise price and contractual term):


	Number of Shares			Weighted- Average Exercise Price		Weighted- Average Remaining Contractual Term (Years)		Aggregate Intrinsic Value
Outstanding as of April 25, 2014		14.5		$	34.10
Granted		2.1			36.53
Exercised		(2.5	)		25.55
Forfeited and expired		(0.4	)		43.10

Outstanding as of October 24, 2014		13.7			35.82		3.79	$	96.3


Vested and expected to vest as of October 24, 2014		13.1			35.78		3.68		93.7

Exercisable as of October 24, 2014		9.0			35.25		2.75		75.3

The aggregate intrinsic value represents the pre-tax difference between the exercise price of stock options and the quoted market price of our stock on that day for all in-the-money options.

Additional information related to our stock options is summarized below (in millions):


	Six Months Ended
	October 24, 2014		October 25, 2013
Intrinsic value of exercises	$	37.5	$	60.4
Proceeds received from exercises	$	64.8	$	113.2
Fair value of options vested	$	18.6	$	25.4

Restricted Stock Units

The following table summarizes activity related to our restricted stock units (RSUs) (in millions, except for fair value):


	Number of Shares			Weighted- Average Grant Date Fair Value
Outstanding as of April 25, 2014		13.2		$	38.35
Granted		5.8			35.37
Vested		(3.6	)		38.99
Forfeited		(1.1	)		37.84

Outstanding as of October 24, 2014		14.3			37.02

RSUs are converted into common stock upon vesting. We primarily use the net share settlement approach upon vesting, where a portion of the shares are withheld as settlement of statutory employee withholding taxes, which decreases the shares issued to the employee by a corresponding value. The number and value of the shares netted for employee taxes are summarized in the table below (in millions):


	Six Months Ended
	October 24, 2014		October 25, 2013
Shares withheld for taxes		1.1		1.0
Fair value of shares withheld	$	42.5	$	39.3

Employee Stock Purchase Plan

The following table summarizes activity related to the purchase rights issued under the Employee Stock Purchase Plan (ESPP) (in millions):


	Six Months Ended
	October 24, 2014		October 25, 2013
Shares issued under the ESPP		1.9		2.0
Proceeds from issuance of shares	$	48.9	$	49.9

Stock-Based Compensation Expense

Stock-based compensation expense is included in the condensed consolidated statements of operations as follows (in millions):


	Three Months Ended				Six Months Ended
	October 24, 2014		October 25, 2013		October 24, 2014		October 25, 2013
Cost of product revenues	$	1.6	$	1.4	$	3.1	$	2.7
Cost of service revenues		4.0		4.2		8.4		8.2
Sales and marketing		30.4		31.1		57.4		61.6
Research and development		21.2		21.6		42.7		43.0
General and administrative		10.6		9.3		18.5		18.4

Total stock-based compensation expense	$	67.8	$	67.6	$	130.1	$	133.9

As of October 24, 2014, total unrecognized compensation expense related to our equity awards was $456.0 million, which is expected to be recognized on a straight-line basis over a weighted-average remaining service period of 2.6 years.

Total income tax benefit associated with employee stock transactions and recognized in stockholders’ equity were as follows (in millions):


	Six Months Ended
	October 24, 2014		October 25, 2013
Income tax benefit associated with employee stock transactions	$	58.2	$	1.8

Stock Repurchase Program

As of October 24, 2014, our Board of Directors has authorized the repurchase of up to $7.1 billion of our common stock. Under this program, which we may suspend or discontinue at any time, we may purchase shares of our outstanding common stock through open market and privately negotiated transactions at prices deemed appropriate by our management.

The following table summarizes activity related to this program for the six months ended October 24, 2014 (in millions, except per share information):


Number of shares repurchased		18.4
Average price per share	$	39.10
Aggregate purchase price	$	718.9
Remaining authorization at end of period	$	405.9

The aggregate purchase price of our stock repurchases for the six months ended October 24, 2014 consisted of $718.9 million of open market purchases, of which $523.0 million and $195.9 million was allocated to additional paid-in capital and retained earnings, respectively.

Dividends

The following is a summary of our activities related to dividends on our common stock (in millions, except per share amounts):


	Six Months Ended
	October 24, 2014		October 25, 2013
Dividends per share declared and paid	$	0.330	$	0.300


Dividend payments allocated to additional paid-in capital	$	52.1	$	0.0

Dividend payments allocated to retained earnings	$	53.4	$	102.7

On November 12, 2014, we declared a cash dividend of $0.165 per share of common stock, payable on January 22, 2015 to holders of record as of the close of business on January 9, 2015. The timing and amount of future dividends will depend on market conditions, corporate business and financial considerations and regulatory requirements. All dividends declared have been determined by the Company to be legally authorized under the laws of the state in which we are incorporated.

Retained Earnings

A reconciliation of retained earnings for the six months ended October 24, 2014 is as follows (in millions):


Balance as of April 25, 2014	$	1.1
Net income		248.2
Repurchases of common stock		(195.9	)
Dividends		(53.4	)

Balance as of October 24, 2014	$	0.0

Accumulated Other Comprehensive Income

Changes in accumulated other comprehensive income (AOCI) by component, net of tax, for the six months ended October 24, 2014 are summarized below (in millions):


	Foreign Currency Translation Adjustments			Defined Benefit Obligation Adjustments			Unrealized Gains on Available- for-Sale Securities			Unrealized Gains (Losses) on Derivative Instruments			Total
Balance as of April 25, 2014	$	5.5		$	(4.8	)	$	8.9		$	(0.5	)	$	9.1

Other comprehensive income (loss) (OCI) before Reclassifications, net of tax		(10.8	)		1.1			(1.1	)		(4.3	)		(15.1	)
Amounts reclassified from AOCI, net of tax		0.0			0.2			0.2			6.2			6.6

Net OCI		(10.8	)		1.3			(0.9	)		1.9			(8.5	)

Balance as of October 24, 2014	$	(5.3	)	$	(3.5	)	$	8.0		$	1.4		$	0.6

The amounts reclassified out of AOCI are as follows (in millions):


	Three Months Ended					Six Months Ended
	October 24, 2014		October 25, 2013			October 24, 2014		October 25, 2013
OCI Components	Amounts Reclassified from AOCI					Amounts Reclassified from AOCI					Statements of Operations Location
Recognized losses on defined benefit obligations	$	0.1	$	0.0		$	0.2	$	0.0			Operating expenses
Realized (gains) losses on available-for-sale securities		0.0		(1.0	)		0.2		(1.1	)		Other income (expense), net
Realized losses on cash flow hedges		4.5		2.4			6.2		1.4			Net revenues

Total reclassifications	$	4.6	$	1.4		$	6.6	$	0.3