Annual report pursuant to Section 13 and 15(d)

Common Stock and Stock-Based Incentive Compensation Plans (Tables)

v3.22.0.1
Common Stock and Stock-Based Incentive Compensation Plans (Tables)
 12 Months Ended
Dec. 25, 2021
Share-based Payment Arrangement [Abstract]  
Schedule of Common Shares Outstanding Shares of common stock outstanding were as follows:
Year Ended
December 25,
2021		 December 26,
2020		 December 28,
2019
(In millions)
Balance, beginning of period 1,211  1,170  1,005 
Common stock issued under employee equity plans 12  14  20 
Repurchases of common stock (17) —  — 
Common stock repurchases for tax withholding on equity awards (2) (1) — 
Issuance of common stock upon warrant exercise —  —  75 
Issuance of common stock to settle convertible debt 3  28  69 
Issuance of treasury stock to partially settle debt —  —  1 
Balance, end of period 1,207  1,211  1,170 
Schedule of Employee Service Share-based Compensation, Allocation of Recognized Period Costs Stock-based compensation expense was allocated in the consolidated statements of operations as follows:
December 25, 2021 December 26, 2020 December 28, 2019
  (In millions)
Cost of sales $ 5  $ 6  $ 6 
Research and development 246  173  129 
Marketing, general, and administrative 128  95  62 
Total stock-based compensation expense before income taxes 379  274  197 
Income tax benefit (58) (42) — 
Total stock-based compensation expense, net of income taxes $ 321  $ 232  $ 197 
Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions The weighted-average estimated fair value of employee stock options granted for the years ended December 25, 2021, December 26, 2020 and December 28, 2019 was $46.07, $38.49 and $13.31 per share, respectively, using the following assumptions:
December 25, 2021 December 26, 2020 December 28, 2019
Expected volatility 51.77  % 57.87  %
52.60% - 56.51%
Risk-free interest rate 0.69  % 0.18  %
1.53% - 2.51%
Expected dividends —  % —  % —  %
Expected life (in years) 4.55 4.30
3.94 - 3.95
The weighted-average grant date fair values of PRSUs granted during 2021, 2020 and 2019 were $153.89, $122.95 and $50.00, respectively, using the following assumptions:
December 25, 2021 December 26, 2020 December 28, 2019
Expected volatility 57.75  %
55.74% - 60.10%
60.54% - 62.52%
Risk-free interest rate 0.43  %
0.14% - 1.41%
1.56% - 2.49%
Expected dividends —  % —  % —  %
Expected term (in years) 3.00
2.48 - 3.00
2.48 - 5.00
Schedule of Share-based Compensation, Stock Options, Activity
The following table summarizes stock option activity and related information:
Outstanding Number
of Shares		 Weighted-
Average
Exercise
Price		 Aggregate Intrinsic Value Weighted-Average Remaining Contractual Life
(in years)
  (In millions, except share price)
Balance as of December 26, 2020 7  $ 12.91 
Granted 1  $ 107.58 
Exercised (3) $ 4.38 
Balance as of December 25, 2021 5  $ 23.98  $ 614  2.80
Exercisable December 25, 2021 4  $ 13.24  $ 561  2.23
Schedule of Share-based Compensation, Restricted Stock Units, Activity
The following table summarizes time-based RSU activity and related information:
Number
of Shares		 Weighted- Average Grant-Date Fair Value Aggregate Intrinsic Value Weighted-Average Remaining Contractual Life
(in years)
  (In millions except share price)
Unvested shares as of December 26, 2020 12  $ 43.98 
Granted 5  $ 107.02 
Forfeited (1) $ 63.99 
Vested (6) $ 36.37 
Unvested shares as of December 25, 2021 10  $ 79.03  $ 1,460  1.26
Schedule of Nonvested Performance-based Units Activity
The following table summarizes PRSU activity and related information:
  Number
of Shares		 Weighted-Average
Grant-Date Fair Value		 Aggregate Intrinsic Value Weighted-Average Remaining Contractual Life
(in years)
(In millions except share price)
Unvested shares as of December 26, 2020 3  $ 55.63 
Granted —  $ 153.89 
Forfeited —  $ — 
Vested (1) $ 24.40 
Unvested shares as of December 25, 2021 2  $ 78.59  $ 338  1.50
Schedule of ESPP The weighted-average grant date fair value for the ESPP during 2021, 2020 and 2019 was $27.27, $20.97 and $9.96 per share, respectively, using the following assumptions:
December 25, 2021 December 26, 2020 December 28, 2019
Expected volatility
36.90% - 39.39%
55.16% - 66.53%
48.95% - 67.02%
Risk-free interest rate
0.04% - 0.07%
0.11% - 0.15%
1.58% - 2.46%
Expected dividends —  % —  % —  %
Expected term (in years) 0.50 0.50 0.50