Note 9 – Benefit Plans

Stock Plans

The Company had 376.5 million shares reserved for future issuance under its stock plans as of December 26, 2015. RSUs granted generally vest over four years, based on continued employment, and are settled upon vesting in shares of the Company’s common stock on a one-for-one basis. Each share issued with respect to RSUs granted under the Company’s stock plans reduces the number of shares available for grant under the plan by two shares. RSUs cancelled and shares withheld to satisfy tax withholding obligations increase the number of shares available for grant under the plans utilizing a factor of two times the number of RSUs cancelled or shares withheld. Stock options count against the number of shares available for grant on a one-for-one basis.

Rule 10b5-1 Trading Plans

During the three months ended December 26, 2015, Section 16 officers Timothy D. Cook, Luca Maestri, Daniel Riccio, Philip Schiller and Jeffrey Williams had equity trading plans in place in accordance with Rule 10b5-1(c)(1) under the Exchange Act. An equity trading plan is a written document that pre-establishes the amounts, prices and dates (or formula for determining the amounts, prices and dates) of future purchases or sales of the Company’s stock, including shares acquired pursuant to the Company’s employee and director equity plans.

Restricted Stock Units

A summary of the Company’s RSU activity and related information for the three months ended December 26, 2015 is as follows:


	Number of RSUs (in thousands)			Weighted-Average Grant Date Fair Value Per Share		Aggregate Intrinsic Value (in millions)
Balance at September 26, 2015		101,467		$	85.77
RSUs granted		41,082		$	111.31
RSUs vested		(17,923	)	$	79.24
RSUs cancelled		(1,282	)	$	90.95

Balance at December 26, 2015		123,344		$	95.09	$	13,325

RSUs that vested during the three months ended December 26, 2015 and December 27, 2014 had fair values of $2.0 billion and $1.7 billion, respectively, as of the vesting date.

Stock Options

The Company had 1.1 million stock options outstanding as of December 26, 2015, with a weighted-average exercise price per share of $15.24 and weighted-average remaining contractual term of 4.0 years, substantially all of which are exercisable. The aggregate intrinsic value of the stock options outstanding as of December 26, 2015 was $106 million, which represents the value of the Company’s closing stock price on the last trading day of the period in excess of the weighted-average exercise price multiplied by the number of options outstanding.

Share-Based Compensation

The following table shows a summary of the share-based compensation expense included in the Condensed Consolidated Statements of Operations for the three months ended December 26, 2015 and December 27, 2014 (in millions):


	Three Months Ended
	December 26, 2015		December 27, 2014
Cost of sales	$	204	$	140
Research and development		466		374
Selling, general and administrative		408		374

Total share-based compensation expense	$	1,078	$	888

The income tax benefit related to share-based compensation expense was $413 million and $351 million for the three months ended December 26, 2015 and December 27, 2014, respectively. As of December 26, 2015, the total unrecognized compensation cost related to outstanding stock options, RSUs and restricted stock was $10.0 billion, which the Company expects to recognize over a weighted-average period of 3.0 years.