Stock-Based Compensation Plans

6 Months Ended

Feb. 16, 2020

Share-based Payment Arrangement [Abstract]

Note 7—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 aggregate 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 16, 2020, 13,535,000 shares were available to be granted as RSUs, and the following awards were outstanding:


•	5,133,000 time-based RSUs that vest upon continued employment over specified periods of time;


•	30,000 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

•

123,000 performance-based RSUs, granted to executive officers of the Company, subject to achievement of performance targets for fiscal 2020, 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 and the Company recognized compensation expense for these awards as it is currently deemed probable that the targets will be achieved.

The following table summarizes RSU transactions during the first half of 2020:



	Number of Units (in 000s)		Weighted-Average Grant Date Fair Value
Outstanding at September 1, 2019	6,496		$	167.55
Granted	2,252		294.08
Vested and delivered	(3,351	)	188.91
Forfeited	(111	)	193.02
Outstanding at February 16, 2020	5,286		$	207.40

The remaining unrecognized compensation cost related to nonvested RSUs at February 16, 2020, was $913, 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				24 Weeks Ended
	February 16, 2020		February 17, 2019		February 16, 2020		February 17, 2019
Stock-based compensation expense	$	118	$	119	$	419	$	389
Less recognized income tax benefit	21		23		87		84
Stock-based compensation expense, net	$	97	$	96	$	332	$	305