Stock-Based Compensation Plans

3 Months Ended

Nov. 22, 2015

Disclosure of Compensation Related Costs, Share-based Payments [Abstract]

Stock-Based Compensation Plans

Note 6—Stock-Based Compensation

The Seventh Restated 2002 Stock Incentive Plan (Seventh Plan) authorized the issuance of 23,500,000 shares (13,429,000 RSUs) of common stock for future grants in addition to the shares authorized under the previous plan. The Company issues new shares of common stock upon vesting of RSUs. Shares for vested RSUs are generally delivered to participants annually, net of shares equal to the minimum statutory withholding taxes.

Summary of Restricted Stock Unit Activity

At November 22, 2015, 14,836,000 shares were available to be granted as RSUs and the following awards were outstanding:

• 8,150,000 time-based RSUs, which vest upon continued employment over specified periods of time;

• 212,000 performance-based RSUs granted to certain executive officers of the Company for which the performance targets have been met. The awards vest upon continued employment over specified periods of time; and

• 236,000 performance-based RSUs granted to executive officers of the Company subject to achievement of performance targets for fiscal 2016, as determined by the Compensation Committee of the Board of Directors after the end of the fiscal year. These awards are not included in the table below.

The following table summarizes RSU transactions during the first quarter of 2016:

	Number of Units (in 000’s)		Weighted-Average Grant Date Fair Value
Outstanding at August 30, 2015	9,233		$	99.72
Granted	3,283		153.34
Vested and delivered	(4,107	)	102.34
Forfeited	(47	)	106.08
Outstanding at November 22, 2015	8,362		$	119.45

The remaining unrecognized compensation cost related to non-vested RSUs at November 22, 2015 was $954, and the weighted-average period over which this cost will be recognized is 1.9 years.

Summary of Stock-Based Compensation

The following table summarizes stock-based compensation expense and the related tax benefits under the Company’s plans:

	12 Weeks Ended
	November 22, 2015			November 23, 2014
Stock-based compensation expense before income taxes	$	186		$	150
Less recognized income tax benefit	(63		)	(51		)
Stock-based compensation expense, net of income taxes	$	123		$	99