Equity Plans

6 Months Ended

Mar. 04, 2021

Share-based Payment Arrangement [Abstract]

Equity Plans

Equity Plans

As of March 4, 2021, 70 million shares of our common stock were available for future awards under our equity plans.

Restricted Stock and Restricted Stock Units (“Restricted Stock Awards”)

Restricted Stock Awards activity is summarized as follows:

	Quarter ended				Six months ended
	March 4, 2021		February 27, 2020		March 4, 2021		February 27, 2020
Restricted stock award shares granted	—		—		10		8
Weighted-average grant-date fair value per share	$	82.10	$	54.71	$	52.02	$	46.38

Employee Stock Purchase Plan (“ESPP”)

For each six-month ESPP period ended January 2021 and January 2020, we issued 2 million shares at a per share price of $42.55 and $38.16, respectively. Assumptions used in the Black-Scholes option valuation model for ESPP grants for the periods below were as follows:

Quarter ended	March 4, 2021			February 27, 2020
Weighted-average grant-date fair value per share	$	22.40		$	14.43
Average expected life in years	0.5			0.5
Weighted-average expected volatility	48		%	43		%
Weighted-average risk-free interest rate	0.1		%	1.5		%
Expected dividend yield	0		%	0		%

Stock-based Compensation Expense

Stock based compensation expense recognized in our statements of operations is presented below. Stock-based compensation expense of $33 million and $42 million was capitalized and remained in inventory as of March 4, 2021 and September 3, 2020, respectively.

	Quarter ended				Six months ended
	March 4, 2021		February 27, 2020		March 4, 2021		February 27, 2020
Stock-based compensation expense by caption
Cost of goods sold	$	57	$	37	$	98	$	68
Research and development	29		22		53		41
Selling, general, and administrative	26		26		53		48
	$	112	$	85	$	204	$	157
Stock-based compensation expense by type of award
Restricted stock awards	$	94	$	70	$	171	$	127
Employee stock purchase plan	15		11		27		19
Stock options	3		4		6		11
	$	112	$	85	$	204	$	157

As of March 4, 2021, $838 million of total unrecognized compensation costs for unvested awards, before the effect of any future forfeitures, was expected to be recognized through the second quarter of 2025, resulting in a weighted-average period of 1.4 years.