Stock-Based Compensation Plans

8 Months Ended

May 08, 2022

Share-based Payment Arrangement [Abstract]

Stock-Based Compensation Plans

Note 6—Stock-Based Compensation

The 2019 Incentive Plan authorized the issuance of 17,500,000 shares (10,000,000 RSUs) of common stock for future grants, plus the remaining shares that were available for grant and the future forfeited shares from grants under the previous plan, up to a maximum of 27,800,000 shares (15,885,000 RSUs). 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 May 8, 2022, 10,411,000 shares were available to be granted as RSUs, and the following awards were outstanding:

•3,375,000 time-based RSUs, which vest upon continued employment over specified periods and accelerate upon achievement of the long-service term;

•39,000 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 upon achievement of the long-service term; and

•82,000 performance-based RSUs, granted to executive officers of the Company, subject to achievement of performance targets for fiscal 2022, as determined by the Compensation Committee of the Board of Directors after the end of the fiscal year. These awards are included in the table below. The Company recognized compensation expense for these awards in the third quarter of 2022, as it is currently deemed probable that the targets will be achieved.

The following table summarizes RSU transactions during the first thirty-six weeks of 2022:

	Number of Units (in 000s)	Weighted-Average Grant Date Fair Value
Outstanding at August 29, 2021	4,349	$	257.88
Granted	1,679	476.06
Vested and delivered	(2,443)	290.20
Forfeited	(89)	324.80
Outstanding at May 8, 2022	3,496	$	338.37

The remaining unrecognized compensation cost related to RSUs unvested at May 8, 2022, was $890, and the weighted-average period over which this cost will be recognized is 1.7 years.

Summary of Stock-Based Compensation

The following table summarizes stock-based compensation expense and the related tax benefits:

	12 Weeks Ended				36 Weeks Ended
	May 8, 2022		May 9, 2021		May 8, 2022		May 9, 2021
Stock-based compensation expense	$	90	$	87	$	606	$	550
Less recognized income tax benefits	20		18		128		115
Stock-based compensation expense, net	$	70	$	69	$	478	$	435