Stock-Based Compensation Plans

6 Months Ended

Feb. 12, 2023

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 February 12, 2023, 8,703,000 shares were available to be granted as RSUs, and the following awards were outstanding:

•2,921,000 time-based RSUs, which vest upon continued employment over specified periods and accelerate upon achievement of a long-service term;

•41,000 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 a long-service term; and

•135,000 performance-based RSUs granted to executive officers of the Company, subject to achievement of performance targets for fiscal 2023, 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 second quarter of 2023, as it is currently deemed probable that the targets will be achieved.

The following table summarizes RSU transactions during the first half of 2023:

	Number of Units (in 000s)	Weighted-Average Grant Date Fair Value
Outstanding at August 28, 2022	3,449	$	338.41
Granted	1,814	471.47
Vested and delivered	(2,094)	352.57
Forfeited	(72)	394.40
Outstanding at February 12, 2023	3,097	$	405.46

The remaining unrecognized compensation cost related to RSUs unvested at February 12, 2023, was $1,031, 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:

	12 Weeks Ended				24 Weeks Ended
	February 12, 2023		February 13, 2022		February 12, 2023		February 13, 2022
Stock-based compensation expense	$	147	$	128	$	549	$	516
Less recognized income tax benefits	24		23		113		108
Stock-based compensation expense, net	$	123	$	105	$	436	$	408