Stock-Based Compensation Plans

3 Months Ended

Nov. 25, 2018

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 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 withheld for taxes.

Summary of Restricted Stock Unit Activity

At November 25, 2018, 5,553,000 shares were available to be granted as RSUs and the following awards were outstanding:

• 6,415,000 time-based RSUs that vest upon continued employment over specified periods of time;

• 91,000 performance-based RSUs, granted to 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

• 150,000 performance-based RSUs, granted to executive officers of the Company, subject to achievement of performance targets for fiscal 2019, 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 2019:

	Number of Units (in 000’s)		Weighted-Average Grant Date Fair Value
Outstanding at September 2, 2018	7,578		$	140.85
Granted	2,642		223.34
Vested and delivered	(3,682	)	155.66
Forfeited	(32	)	158.81
Outstanding at November 25, 2018	6,506		$	165.89

The remaining unrecognized compensation cost related to non-vested RSUs at November 25, 2018, was $1,011, and the weighted-average period over which this cost will be recognized is 1.8 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 25, 2018			November 26, 2017
Stock-based compensation expense before income taxes	$	270		$	234
Less recognized income tax benefit (1)	(61		)	(77		)
Stock-based compensation expense, net of income taxes	$	209		$	157

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(1) For the first quarter of 2019, the tax benefit reflects the reduction in the U.S. federal statutory income tax rate from 35% to 21%.