The 1999 Plan — As most recently amended on September 12, 2019, the 1999 Stock Option Plan (the Plan) comprises five separate equity incentive programs: (i) the Discretionary Option Grant Program under which options may be granted to eligible individuals at a fixed price per share; (ii) the Stock Appreciation Rights Program under which eligible persons may be granted stock appreciation rights that allow individuals to receive the appreciation in fair market value of the shares; (iii) the Stock Issuance Program under which eligible individuals may be issued shares of common stock directly; (iv) the Performance Share and Performance Unit Program under which eligible persons may be granted performance shares or performance units which result in payment to the participant only if performance goals or other vesting criteria are achieved and (v) the Automatic Award Program under which nonemployee board members automatically receive equity grants at designated intervals over their period of board service. In August 2019, the Plan was extended for a 10-year term.

Under the Plan, the Board of Directors may grant to employees, nonemployee directors, consultants and independent advisors options to purchase shares of our common stock during their period of service. The exercise price for an incentive stock option and a nonstatutory option cannot be less than 100% of the fair market value of the common stock on the grant date. Options granted under the Plan generally vest over a four-year period. Options granted generally have a term of seven years after the grant date, subject to earlier termination upon the occurrence of certain events. The Plan prohibits the repricing of any outstanding stock option or stock appreciation right after it has been granted or to cancel any outstanding stock option or stock appreciation right and immediately replace it with a new stock option or stock appreciation right with a lower exercise price unless approved by stockholders. RSUs granted under the Plan include time-based RSUs that generally vest over a four-year period with 25% vesting on each anniversary of the grant date. The Compensation Committee of the Board of Directors (the Compensation Committee) has the discretion to use different vesting schedules. In addition, performance-based RSUs may be granted under the Plan and are subject to performance criteria and vesting terms specified by the Compensation Committee.

Under the Plan, the number of shares reserved for issuance is reduced by two shares for every share subject to a full value award, which are specified to be grants that are in the form of performance shares and/or performance unit awards, stock, restricted stock or restricted stock units. The Plan (i) limits the number of shares that may be granted pursuant to awards under the Stock Issuance Program to a participant in any calendar year to 1 million, (ii) limits the initial value of performance units a participant may receive to not more than $5 million and (iii) limits the number of performance shares a participant may receive in a calendar year to 1 million.

During fiscal 2020, the shares reserved for issuance under the Plan were increased by 4 million shares of common stock. As of April 24, 2020, 27 million shares were available for grant under the Plan.

As of April 24, 2020 and April 26, 2019, we had less than 1 million stock options outstanding.

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

	Year Ended
	April 24, 2020		April 26, 2019		April 27, 2018
Intrinsic value of exercises	$	5	$	31	$	37
Proceeds received from exercises	$	4	$	25	$	88
Fair value of options vested	$	1	$	2	$	8

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.

In fiscal 2020, 2019 and 2018, we granted PBRSUs to certain of our executives. Each PBRSU has performance-based vesting criteria (in addition to the service based vesting criteria) such that the PBRSU cliff-vests at the end of either an approximate two year or three year performance period, which began on the date specified in the grant agreement and ends on the last day of the second or third fiscal year, respectively, following the grant date. The number of shares of common stock that will be issued to settle the PBRSUs at the end of the applicable performance and service period will range from 0% to 200% of a target number of shares originally granted. For half of the PBRSUs granted in fiscal 2020 and 2019, and all of the PBRSUs granted in fiscal 2018, the number of shares issued will depend upon our Total Stockholder Return (TSR) as compared to the TSR of a specified group of benchmark peer companies (each expressed as a growth rate percentage) calculated as of the applicable period end date. The fair values of these awards were fixed at grant date using a Monte Carlo simulation model. For the remaining PBRSUs granted in fiscal 2020 and 2019, the number of shares issued will depend upon our achievement against a cumulative Adjusted Operating Income (AOI) target, as defined in the grant agreements, for the three-year periods from fiscal 2020 through 2022 and fiscal 2019 through 2021, respectively. The fair values of these PBRSUs were established consistent with our methodology for valuing time-based RSUs, while compensation cost is being recognized based on the probable outcome of the performance condition. The aggregate grant date fair value of all PBRSUs granted in fiscal 2020, 2019 and 2018 was $18 million, $24 million and $20 million, respectively, and these amounts are being recognized to expense over the shorter of the remaining applicable performance or service periods.

As of April 24, 2020, April 26, 2019 and April 27, 2018, there were approximately 1 million PBRSUs outstanding.

The following table summarizes information related to RSUs, including PBRSUs, (in millions, except for fair value):

	Number of Shares			Weighted- Average Grant Date Fair Value
Outstanding as of April 28, 2017		11		$	28.81
Granted		4		$	39.74
Vested		(5	)	$	30.59
Forfeited		(1	)	$	29.54
Outstanding as of April 27, 2018		9		$	32.91
Granted		3		$	63.40
Vested		(3	)	$	32.02
Forfeited		(1	)	$	36.61
Outstanding as of April 26, 2019		8		$	45.68
Granted		4		$	51.39
Vested		(4	)	$	38.87
Forfeited		(1	)	$	48.30
Outstanding as of April 24, 2020		7		$	51.40

We primarily use the net share settlement approach upon vesting, where a portion of the shares are withheld as settlement of 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):

Eligible employees are offered shares through a 24-month offering period, which consists of four consecutive 6-month purchase periods. Employees may purchase a limited number of shares of the Company’s stock at a discount of up to 15% of the lesser of the market value at the beginning of the offering period or the end of each 6-month purchase period. On September 12, 2019, the ESPP was amended to increase the shares reserved for issuance by 2 million shares of common stock. As of April 24, 2020, 7 million shares were available for issuance. The following table summarizes activity related to the purchase rights issued under the ESPP (in millions):

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

	Year Ended
	April 24, 2020		April 26, 2019		April 27, 2018
Cost of product revenues	$	3	$	4	$	3
Cost of hardware maintenance and other services revenues		10		10		10
Sales and marketing		66		67		68
Research and development		53		48		49
General and administrative		21		29		31
Total stock-based compensation expense	$	153	$	158	$	161
Income tax benefit for stock-based compensation	$	15	$	15	$	29

As of April 24, 2020, total unrecognized compensation expense related to our equity awards was $280 million, which is expected to be recognized on a straight-line basis over a weighted-average remaining service period of 2.1 years.

The valuation of RSUs and ESPP purchase rights and the underlying weighted-average assumptions are summarized as follows:

	Year Ended
	April 24, 2020			April 26, 2019			April 27, 2018
RSUs:
Risk-free interest rate		1.7	%		2.6	%		1.4	%
Expected dividend yield		2.9	%		2.4	%		2.0	%
Weighted-average fair value per share granted	$	51.39		$	63.40		$	39.74

ESPP:
Expected term in years		1.2			1.2			1.2
Risk-free interest rate		2.0	%		2.6	%		1.4	%
Expected volatility		33	%		31	%		28	%
Expected dividend yield		3.1	%		2.4	%		2.0	%
Weighted-average fair value per right granted	$	10.15		$	18.07		$	12.34

As of April 24, 2020, our Board of Directors has authorized the repurchase of up to $13.6 billion of our common stock under our stock repurchase program. Under this program, which we may suspend or discontinue at any time, we may purchase shares of our outstanding common stock through solicited or unsolicited transactions in the open market, in privately negotiated transactions, through accelerated share repurchase programs, pursuant to a Rule 10b5-1 plan or in such other manner as deemed appropriate by our management. In March 2020, we suspended our repurchases under the program due to the economic impact of the COVID-19 pandemic.

The following table summarizes activity related to this program (in millions, except per share amounts):

	Year Ended
	April 24, 2020		April 26, 2019		April 27, 2018
Number of shares repurchased		25		29		15
Average price per share	$	56.34	$	72.87	$	51.57
Stock repurchases allocated to additional paid-in capital	$	625	$	1,002	$	568
Stock repurchases allocated to retained earnings (accumulated deficit)	$	786	$	1,109	$	226
Remaining authorization at end of period	$	477	$	1,889	$	4,000

Since the May 13, 2003 inception of our stock repurchase program through April 24, 2020, we repurchased a total of 338 million shares of our common stock at an average price of $38.86 per share, for an aggregate purchase price of $13.1 billion.

Our Board of Directors has the authority to issue up to 5 million shares of preferred stock and to determine the price, rights, preferences, privileges, and restrictions, including voting rights, of those shares without any further vote or action by the stockholders. No shares of preferred stock were issued or outstanding in any period presented.

The following is a summary of our fiscal 2020, 2019 and 2018 activities related to dividends on our common stock (in millions, except per share amounts).

	Year Ended
	April 24, 2020		April 26, 2019		April 27, 2018
Dividends per share declared	$	1.92	$	1.60	$	0.80
Dividend payments allocated to additional paid-in capital	$	400	$	403	$	106
Dividend payments allocated to retained earnings	$	39	$	—	$	108

On May 26, 2020, we declared a cash dividend of $0.48 per share of common stock, payable on July 29, 2020 to shareholders of record as of the close of business on July 10, 2020. 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.

Changes in accumulated other comprehensive income (loss) (AOCI) by component, net of tax, are summarized below (in millions):

	Foreign Currency Translation Adjustments			Defined Benefit Obligation Adjustments			Unrealized Gains (Losses) on Available- for-Sale Securities			Unrealized Gains (Losses) on Derivative Instruments			Total
Balance as of April 27, 2018	$	(27	)	$	—		$	(43	)	$	—		$	(70	)
OCI before reclassifications, net of tax		(7	)		(2	)		36			2			29
Amounts reclassified from AOCI, net of tax		—			(1	)		—			(1	)		(2	)
Total OCI		(7	)		(3	)		36			1			27
Balance as of April 26, 2019		(34	)		(3	)		(7	)		1			(43	)
OCI before reclassifications, net of tax		(8	)		3			22			5			22
Amounts reclassified from AOCI, net of tax		—			(1	)		(14	)		(6	)		(21	)
Total OCI		(8	)		2			8			(1	)		1
Balance as of April 24, 2020	$	(42	)	$	(1	)	$	1		$	—		$	(42	)

	Year Ended
	April 24, 2020			April 26, 2019			April 27, 2018
	Amounts Reclassified from AOCI									Statements of Operations Classification
Recognized (gains) losses on defined benefit obligations	$	(2	)	$	(2	)		(2	)	Operating expenses
Realized gains on available-for-sale securities		(14	)		—			—		Other income (expense), net
Realized gains on cash flow hedges		(6	)		(1	)		—		Net revenues
Total reclassifications	$	(22	)	$	(3	)	$	(2	)